Statement re Granting of Security Over Shares

1 September 2015

Cable & Wireless Communications Plc (the "Company")

GRANTING OF SECURITY OVER SHARES IN THE COMPANY BY CVBI HOLDINGS (BARBADOS) INC.

The Company was notified on 31 August 2015, that CVBI Holdings (Barbados) Inc. ("CHBI"), a shareholder of the Company controlled by John Risley (a director of the Company), has granted a charge over 788,549,081 ordinary shares of US 5 cents each in the share capital of the Company (the "Ordinary Shares") in favour of JP Morgan Chase Bank, N.A. as part of a financing of CHBI.

As a result, CHBI now has a charge granted over a total of 788,549,081 Ordinary Shares representing approximately 17.62 per cent. of the Company's issued share capital.

CHBI remains the beneficial owner of all of the Ordinary Shares which are subject to the charge and retains the associated voting rights which represent all of its total beneficial holding.

CHBI's beneficial interest in the share capital of the Company remains unchanged at 788,549,081 Ordinary Shares, representing approximately 17.62 per cent. of the Company's issued share capital.

The interests of the Concert Party (as defined in the Company's announcement dated 29 May 2015) in the share capital of the Company remains unchanged.

Enquires to:

Cable & Wireless Communications Plc Kunal Patel +44(0) 20 7315 4083