KCOM GROUP PLC (KCOM.L) TRADING UPDATE

KCOM Group PLC ('KCOM') issues the following trading update ahead of its Interim results for the six months ending 30 September, which will be announced on 24 November 2009. The management team is also holding a briefing for analysts today, to provide an update on the market opportunity for the managed services business. No new material information will be disclosed and the presentation will be available on the company's website at www.kcom.com from 10.30am.

The Board's focus for the current financial year remains the continuing improvement in the overall quality of the Group's activities, positioning it for subsequent profitable growth.

The restructure of the Group continues to make good progress and remains on track to be completed, as planned, in the third quarter of the current financial year: 

This more integrated and tightly focused Group structure is based on two businesses; 

       -    the first includes our East Yorkshire business and Eclipse Internet 

       -    and, the second comprises those activities that will form a national managed communications services 
            business.

We will report in this new format at our interim results.

The previously announced agreement with BT is progressing well. On 1st September, the management of our network operations transferred successfully over to BT. As part of these arrangements, 130 KCOM employees transferred to BT under TUPE on the same day.

Outlook

Group trading remains in line with our expectations. In particular, our net debt has continued to reduce as a result of improving financial performance, arising from the actions we have taken. The Board remains confident that the actions taken so far have strengthened the Group and will deliver an overall improved financial performance.

For further information, please contact:

Bill Halbert, Executive Chairman/Paul Simpson, CFO 
KCOM Group PLC 
01924 882952 (PA: Annette Watling) 

Brian Hudspith/Amanda Martyr 
The Maitland Consultancy 
020 7379 5151