OPTUS EXAMINES OPTIONS FOR GROWTH

Cable & Wireless Optus announced today that it was conducting an ongoing review of structural and strategic options for all three of its operating businesses, Data and Business Services, Mobile and Consumer & Multimedia.

The company is enjoying dramatic growth and increased market share. The market value of Cable & Wireless Optus has increased five fold in the last three years. After-tax profit was $265 million last year - compared with a $600 million loss three years ago.

To build on this growth and success, the company now believes it appropriate to examine which structures for the three businesses will optimise their already impressive growth prospects and create the greatest value for shareholders.

The review will include options which Optus has already been examining - including an equity partnership in Consumer & Multimedia, a regional branding and equity alliance for its Mobile business or new investment partners.

Optus will work closely with its 52.5% shareholder Cable and Wireless plc throughout this review.

Cable and Wireless plc has concentrated its global focus and expertise on the data and business services markets, and remains deeply committed to those markets in Australia.

The review is aimed at maximising value for all Optus's shareholders.

Decisions following the review are for the Cable & Wireless Optus Board.

The review is at a preliminary stage and is expected to take some months to complete. At this stage the outcome of the review cannot be predicted.

For more information:
Stephen Woodhill
Cable & Wireless Optus