Transaction in Own Shares

Treasury Shares

Cable and Wireless plc ("the Company") advises that on 5 March 2010 the Company transferred 453,627 treasury shares to the Halifax Share Ownership Trust for cash at a price of £1.385 per share for the purposes of the Company's employees' share schemes.

Subsequent to the transfer, the Company holds a total of 28,259,496 Ordinary Shares in treasury.

As at close of business on 5 March 2010, the Company had 2,596,169,229 Ordinary Shares (excluding treasury shares) in issue.

This announcement is in conformity with LR 12.6.4.

8 March 2010