Cable and Wireless plc

SCRIP DIVIDEND SCHEME

Cable and Wireless plc (the "Company") offers shareholders the opportunity to take new ordinary shares, credited as fully paid, in lieu of cash dividends, by participating in a Scrip Dividend Scheme (the "Scheme").

In relation to the interim dividend for the year ended 31 March 2010, the price of a new ordinary share issued under the Scheme has been set at 137.66 pence. This is the average of the Company's middle market closing price for the five consecutive dealing days commencing on the ex-dividend date of 18 November 2009.

Shareholders wishing to join the Scheme should return a completed mandate form to the Registrar, Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA by 22 December 2009. Copies of the mandate form and the scrip dividend brochure may be obtained from Equiniti (UK callers: 0871 384 2268, overseas callers: +44 121 415 7047) or from the Company's website www.cw.com.

Name of person making notification: Gill Roberts

Contact number: 020 7315 4934

Date of notification: 25 November 2009