Reports that Cable & Wireless Optus plans to spend up to $3.1 billion on its Consumer and Multimedia (CMM) division over the next five years are incorrect.

The Australian newspaper today has quoted from a document, now some months old, prepared by an investment bank. The document proposed several alternative future scenarios for the CMM division including a high growth strategy with substantial capital expenditure.

Since the document was prepared, Optus has announced a structural and strategic review of all of its businesses including CMM.

The scenarios outlined in the document are no longer under consideration, and the company's priority for CMM is to decide on its ownership and future in the context of the review.

The investment bank which prepared the document is no longer retained by Optus. The Australian's report contains numerous other inaccuracies. There was no board meeting held last night. There is no division between Optus' independent directors and Cable & Wireless plc.

Optus has not been one of Australia's worst share price performers - the company's share price is up 59% since its IPO in 1998, when during the same period Telstra fell 3% and the MSCI Global Telco Index was up 21%.

For more information:
Stephen Woodhill
Cable & Wireless Optus
Tel: 02 9342 7850