Cable & Wireless Completes Acquisition of PSINet Japan; Reinforcing Position in Internet Services in Japan

Business Wire, Jan 25, 2002

Business Editors/Hi-Tech Writers

LONDON--(BUSINESS WIRE)--Jan. 25, 2002

Cable and Wireless plc ("Cable & Wireless") (NYSE:CWP), the global telecommunications group, announced today (25 January 2002) that it has, through its subsidiary Cable & Wireless IDC, completed the acquisition of PSINet Japan, Inc. ("PSINet Japan") from PSINet Inc. for US$16.6 million (approximately (pound)11.5 million).

The increase in the purchase price originally announced on 10 December 2001 results from Cable & Wireless bidding against another party at the court supervised auction which forms part of the sale process under Chapter 11 of the US Bankruptcy Code.

PSINet Japan provides IP (Internet Protocol) connectivity and web hosting services for enterprise customers in Japan. The company has points of presence within key Japanese cities, a data centre in Tokyo and provides services to several thousands of business customers.

The acquisition is intended to reinforce Cable & Wireless' position in Japan's growing internet market and accelerate the delivery of Cable & Wireless' strategy to provide IP and data services to business customers in Japan.

PSINet Japan's unaudited revenue in the first half year 2001 was (pound)28 million, generating positive EBITDA (under US GAAP) of (pound)3.4 million in the same period, and the acquisition is expected to more than double Cable & Wireless's IP revenue within Japan.

Commenting on the announcement, Simon Cunningham, President and CEO Cable & Wireless IDC, said: "This acquisition highlights our commitment to the Japanese market and clearly fits our strategy to grow our IP business within Japan. We will realise cost synergies through sharing a much larger infrastructure, whilst our continued commitment to quality will bring benefit to a much broader customer base."

About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over (pound)8 billion (US$11 billion) in the year to 31 March 2001 and customers in 70 countries. Cable & Wireless' focus for future growth is on IP (Internet protocol) and data services and solutions for business customers.

It is developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With the capability of its global IP infrastructure and its strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers. For more information about Cable & Wireless, go to www.cw.com