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Managed Hosting Solutions Set the Foundations for Businesses' e-business Strategy

NETWORLD+INTEROP - LAS VEGAS - May 8, 2001 - Cable & Wireless (NYSE: CWP), the global
telecommunications group, today unveiled Managed Hosting Solutions, a new global suite of hosting
solutions that businesses of all sizes can use to establish or expand their e-business
infrastructure in as few as five to ten days.

Managed Hosting Solutions' new building block approach takes the customised hosting environment to
the next level by enabling Cable & Wireless to offer businesses a standardised global product, with
its advantages of affordability, rapid deployment and scalability, with the performance,
reliability and security expected of the company's customised hosting solutions. Supported by
Cable & Wireless's global Internet Protocol (IP) network and hosting centres around the world,
Managed Hosting Solutions gives customers such as HNC Bank and Global Wireless Services, the
industry's most aggressive installation timeframes to meet rapid go-to-market plans and network
performance commitments to support mission-critical hosting operations.

"In contrast to long lead-times typical of customised hosting, our managed hosting building blocks
can be provisioned to meet all our customers' hosting requirements within a matter of days," said
Eric Dorsch, vice president of Global Web Hosting Product Management at Cable & Wireless. "These
solutions represent the future evolution of managed hosting and, with a range of components that
allow for more flexibility than our nearest competitors, are the foundations for a successful
e-business strategy."

With Managed Hosting Solutions', customers can configure a customised solution using standardised
building blocks to support a wide range of managed hosting requirements, from the simple to the
complex. The new offerings also give businesses an easier entry point into higher-end dedicated
hosting solutions by using the most commonly used applications and hardware with the benefits of
Cable & Wireless' industry-leading Service Level Agreements (SLAs) and flexible usage-based
bandwidth billing options. Managed Hosting Solutions is available immediately in the United States
and United Kingdom with future availability across Europe and Japan in mid-2001.

"Many businesses today are increasingly looking for high performance hosting solutions that can be
deployed within days and achieve an immediate return on investment," said Courtney Quinn, senior
analyst at The Yankee Group. "Cable & Wireless' building blocks model gives customers the
affordability and scalability of a standardised product with the benefits of a custom hosting
environment - performance, reliability and security."

Managed Hosting Building Blocks

Cable & Wireless's Managed Hosting Solutions are available in three levels of functionality -
Standard, Intermediate and Advanced - on four of the industry's most popular operating system
platforms: Linux, Microsoft Windows 2000, Microsoft Windows NT, and Sun Solaris. Each tier
includes standardised components - hardware, operating system, site management, applications,
monitoring and reporting options - as well as network connectivity, 24x7 support, flexible
usage-based bandwidth billing options, and SLAs covering installation, network performance and
server availability:

· Standard - This entry level tier is designed to provide a complete, cost-effective end-to-end
hosting solution. This server platform is designed to be used as a dedicated web server or for
other applications that are not CPU or disk intensive.

· Intermediate - With multi-processor support and high-performance read access; this is an ideal
mid-range web server platform for those requiring the next step in applications performance.

· Advanced - This server platform is designed to deliver the highest level of scalable performance
and includes support for up to 4 processors and high performance read/write disk access.

Site Management Services

In addition, Cable & Wireless offers Site Management Services as options to the standard Managed
Hosting Solutions offerings for a more unique level of custom tailoring typical of mission-critical
web sites. The array of Site Management Services offered by Cable & Wireless include:

· Load Balancing - Shared and Dedicated Platform

· Monitoring

· Backup and Restoration

· Server Architecture and Network Design

· Database Server Software Configuration

· Commerce Software Systems Configuration

· Web Reporting

· Dedicated Backend Connections and Configuration

· Technical Account Management

Service Level Agreements

The new Cable & Wireless Managed Hosting Solutions are available with SLAs encompassing
installation, network performance and server availability:

· Installation SLA - installation of servers within five to 10 days or a modified period, depending
on the number of servers and services chosen.

· Network SLA - 99.9% local network availability; monthly average network-wide round-trip delay of
no more than 55 milliseconds (ms) for traffic within the US, 60 ms in Europe, 100 ms for
trans-Atlantic traffic and 130 ms for trans-Pacific traffic; monthly average network-wide packet
loss of no more than 1% for traffic.

· Server SLA - 99.7% availability of server hardware.

Usage-Based Bandwidth Options

Cable & Wireless' new Managed Hosting Solutions are also available with usage-based bandwidth
billing options. Cable & Wireless' Usage-Based Billing, offering more flexible and affordable
solutions to meet customers' unique bandwidth requirements, is available in three distinct

· Capped Bandwidth Service - for customers with relatively fixed bandwidth needs, this service
guarantees a specific amount of network bandwidth at a fixed monthly cost, allowing predictable and
manageable bandwidth costs plus optimal network capacity.

· Burstable Bandwidth Service - for customers that are experiencing unprecedented and
unpredictable Internet growth, this service gives customers the ability to seamlessly utilise
additional capacity up to 100 Mbps.

· Capped Burstable Bandwidth Service- for customers that understand their bandwidth needs but need
the ability to burst beyond a defined ceiling such as during a marketing campaign, this service
allows the ability to burst up to two pre-defined levels.

Cable & Wireless' portfolio of global web hosting services are supported by the company's single
global IP network (AS3561) and global network of 22 secure hosting centres in the US, UK,
continental Europe and Japan. By delivering hosting services supported by a single end-to-end
infrastructure, Cable & Wireless can offer customers superior performance and reliability through
industry-leading SLAs.

About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over £9 billion
(US$14 billion) in the year to 31 March 2000 and customers in 70 countries. Its operations around
the world offer a full range of telecommunications services. Cable & Wireless' focus for future
growth is on IP (Internet Protocol) and data services and solutions for business customers. It is
developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific
region in support of this strategy. With the capability of its global IP infrastructure and its
strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and
services to business customers. For more information about Cable & Wireless, go to

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