C&W CEO letter on the purchase of Energis

August 2005

Dear ,

I am writing to you today with good news for


businesses. Today Cable
& Wireless has announced our acquisition of Energis, and I wanted to
highlight a couple of the benefits that this joining of two of the strongest
communication providers in the


can bring you. The deal is
subject to regulatory approval by the Office of Fair Trading, which we expect
to receive in the autumn.

Already the main challenger to BT in the UK, and a
leading provider of communication solutions internationally, the combination of
our solutions and people with those at Energis, will significantly strengthen
the competitive landscape in UK, driving better value and the faster
development of new services.

For us it is the next step in accelerating the strategic
transformation of our


business. It creates a business with the scale to compete, the access network
to offer full end-to-end control to our customers and the technological
capability to migrate our customers to the flexibility of IP and next-generation
services as their businesses demand.

At the outset, let me reassure you that customers will
remain our number one priority. Until regulatory clearance is obtained, the two
businesses will remain separate. We will begin the planning to ensure smooth
integration that avoids customer disruption immediately.

Our investments in Next Generation Network and ADSL/SDSL
unbundling via Bulldog will continue apace. As Ovum recently reported “…that
Cable & Wireless is already well advanced in its strategic thinking and
planning, and will have an advanced NGN long before BT.

Practically, for the near term, you won’t notice much
change. Our aim is to avoid any disruption to you over the coming weeks — our
success will only continue if we stay focused on what you need.

I am very excited about the new business. We will have
great products, scale and people and strong financial backing, but most of all
we will have great customers and we will continue to be driven by what they



Executive Officer, Cable & Wireless

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