Suspension of Conversion Rights

2 March 2010

Announcement

CABLE AND WIRELESS PLC announces publication of notice to holders of £230,000,000 5.75 per cent. Convertible Bonds of suspension of conversion rights

Cable and Wireless plc announces that it has published a notice (the Notice) to the holders of its £230,000,000 5.75 per cent. Convertible Bonds due 2014 (ISIN: XS0468712863/ Common Code: 046871286) (the Bonds).

In preparation for the Proposed Scheme and Demerger, Cable and Wireless plc has the right to suspend the Conversion Rights under the Bonds for a period of time prescribed by the Conditions (the Suspension Period), exercisable on the giving of written notice to Bondholders in accordance with the Conditions on a date falling 5 days prior to any such suspension.

The Notice provides that, pursuant to the terms and conditions of the Bonds, the Suspension Period will commence at the close of business on 8 March 2010.

Unless otherwise defined in this Announcement, terms used in this Announcement have the meanings given to them in the terms and conditions of the Bonds.

This Announcement is given by:

Cable and Wireless plc

3rd Floor

26 Red Lion Square

London WC1R 4HQ

About Cable & Wireless

Cable and Wireless plc is one of the world's leading international communications companies.

It operates through two standalone business units - Worldwide and Communications.

The Cable & Wireless Worldwide Group specialises in the provision of critical communication infrastructure and services for large users of telecommunications. It provides high quality managed voice, data, applications and internet protocol based services to its customers, focusing on serving large corporates, multinational companies, governments, carrier customers and telecommunications resellers.

Cable & Wireless Worldwide Group serves large users of telecommunications in the UK, its largest market, as well as Asia- Pacific, India, the Middle East, Africa, Continental Europe and the United States.

The Cable & Wireless Communications Group, headquartered in London, is managed as four regional operations - the Caribbean, Panama, Macau and Monaco & Islands. It operates full-service telecommunications businesses providing mobile, broadband and domestic and international fixed line services, as well as offering enterprise solutions and managed services.

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