Demerger

Until 26th March 2010 Cable & Wireless plc comprised two standalone business units

Cable & Wireless Communications: A full service telecommunications company operating through four regional operating units – the Caribbean, Panama, Macau and Monaco & Islands.

Cable & Wireless Worldwide: A global provider of critical communications infrastructure, particularly high quality IP-based managed voice, data, applications and IP-based services, to customers globally, with a focus on large corporates, governments, carriers and telecommunications resellers

Cable & Wireless Worldwide separated from Cable & Wireless Communications by way of a demerger on 26th March and is now a separately listed company.

In November 2009, Cable and Wireless plc announced its intention to separate Communications and Worldwide, reflecting the Board's belief that the two businesses had reached a position where they are best placed to deliver further value to shareholders as separately listed companies.

The separation is the culmination of work which began in April 2006, when Cable and Wireless plc created two largely distinct operating units under the Cable and Wireless plc umbrella to reflect their differing characteristics, and the establishment of clear strategies for both. As a result of the significant progress made since then, the two businesses are now ready to operate as independent, publicly listed businesses.

The Cable and Wireless plc Board believes that the separation will deliver further value for shareholders by:

• Allowing Cable & Wireless Communications and Cable & Wireless Worldwide to pursue their strategies independently with greater flexibility over management of resources and opportunities;
• Creating two separately listed companies with distinct investment profiles and clear market valuations;
• Sharpening management focus still further, helping the two businesses maximise their performance; and
• Providing a transparent capital structure and an efficient balance sheet for each business.