Gartner has positioned Cable & Wireless in the 'Leaders' quadrant in its 2002 European Web Hosting Magic Quadrant based on the company's 'Ability to Execute' and 'Completeness of Vision.' This follows on from a similar study of the North American web hosting sector in which Exodus, Cable & Wireless' US web hosting business, was also placed in the 'leaders' quadrant.

Cable & Wireless' strong position in the European web hosting market has largely been achieved through the acquisition of several leading European IP and data businesses in the past two years which has raised Cable & Wireless' profile in nine European countries. The recent acquisitions of Digital Island and Exodus, combined with Cable & Wireless' existing capabilities, have further strengthened this position.

Gartner's Magic Quadrant report, a graphical portrayal of vendor performance in a particular market segment, positions hosting service providers in one of four quadrants: Niche Players, Visionaries, Challengers and Leaders. According to Gartner, 'Leaders' are vendors that are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

"Our position in both of Gartner's European and North American Magic Quadrant reports are a confirmation of the investments we have made in our web hosting proposition," said Mark Heraghty, chief executive officer, Cable & Wireless Europe. "We are able to offer our customers excellent network and hosting solutions, and the expertise to meet their business requirements."

About Cable & Wireless
Cable & Wireless is a major global telecommunications business with revenue of over £5.9 billion (US$8.6 billion) in the year to 31 March 2002 and customers in 70 countries. The company consists of two core and complementary divisions: Cable & Wireless Regional and Cable & Wireless Global. Cable & Wireless Regional offers a full range of telecommunications services in 33 countries around the world. Cable & Wireless Global's focus for future growth is on IP (Internet protocol) and data services and solutions for business customers. It has developed advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With its financial strength and the capability of its global IP infrastructure, 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.

"The announcement contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward looking statements. See those which appear, or are referred to, in the cautionary statements section on page 1 of the company's Form 20F 2001."

The Magic Quadrant is copyrighted June 2002 by Gartner, Inc. and is reused with permission. Gartner's permission to print or reference its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner's opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources including other published information and direct analyst interaction. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

For further information, please contact:

Analysts Rolyn Acosta Parker
Cable & Wireless
+1 415-738-4643
Rolyn.Acosta@cw.com

Media Celia Cratch
Cable & Wireless
+1 415-738-2168
celia.cratch@cw.com