BCI Telecom -- Stake in Cable & Wireless Communications to be Sold Through Secondary Offering.

LONDON and MONTREAL--(BUSINESS WIRE)--May 28, 1998--BCI HOLDING Cable & Wireless Communications plc ("C&W Comms") today filed a registration statement with the Securities and Exchange Commission in the United States for the secondary offering of 212 million of its ordinary shares.

A copy of the registration statement has also been sent to the Company Announcements Office of the London Stock Exchange. These shares will be offered by BCI Telecom Holding Inc. ("BCITH"), representing its entire 14.25 per cent interest in C&W Comms. BCITH is a wholly-owned subsidiary of BCE Inc. ("BCE"), Canada's largest telecommunications company.

"Although BCE's participation as a shareholder will be missed, the sale will provide the benefits of significantly raising C&W Comms's public float, improving the liquidity of our stock and qualifying it for purchase by a broader range of institutional shareholders," said Graham Wallace, C&W Comms's Chief Executive. C&W Comms's parent company, Cable and Wireless plc, intends to participate in the placing process.

All of the shares will be offered simultaneously in the United States and internationally through a syndicate of underwriters lead-managed by Goldman Sachs & Co.(bookrunner) and Morgan Stanley Dean Witter, with co-lead managers Merrill Lynch, Salomon Brothers, Cazenove, Credit Suisse First Boston, Bear Stearns, and JP Morgan. Goldman Sachs & Co. and Morgan Stanley Dean Witter will act as joint global coordinators for the offering. When available, copies of the prospectus relating to the offering may, subject to any restrictions imposed by laws of any jurisdiction, be obtained from Goldman Sachs & Co., 85 Broad Street, New York, N.Y. 10004 or from Goldman Sachs International, Peterborough Court, 133 Fleet Street, London, England EC4A 2BH.

The BCE group includes: Bell Canada, the principal supplier of communications services in Ontario and Quebec; Nortel (Northern Telecom), a global leader in the design and building of telecommunications networks; Bell Canada International, a leading supplier of telecommunications services in markets outside of Canada; BCE Mobile, a provider of wireless services in Ontario and Quebec under the Bell Mobility banner; and Tele-Direct, a Yellow Pages directory publisher operating in Canada and internationally. BCE's shares are traded in Canada, the United States and Europe.

C&W Comms is the largest provider of integrated telecommunications and television entertainment services in the United Kingdom. It is also one of the largest carriers of wholesale telecommunications traffic in the United Kingdom and the tenth largest carrier of international traffic in the world. C&W Comms provides a comprehensive range of telecommunications services, including local, national and international voice and data services, Internet services, and in certain regions, multichannel television, and, through resale, mobile telecommunications services.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission in the United States but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any purchase of these securities under the proposed secondary offering should be made on the basis of the information contained in the prospectus relating to the secondary offering.

This announcement has been approved solely for the purposes of Section 57 of the Financial Services Act 1986 of Great Britain by Goldman, Sachs International ("Goldman Sachs") and Morgan Stanley & Co. International Limited ("Morgan Stanley"), each of which is regulated by The Securities and Futures Authority Limited. Goldman Sachs and Morgan Stanley are acting for BCE and BCITH in relation to the proposed secondary offering and will not be responsible to anyone else for providing the protections afforded to customers of Goldman Sachs and Morgan Stanley, respectively, or for providing advice in relation to the proposed secondary offering.

   CONTACT: C&W Comms
             Roy Payne, [phone]
             E-mail: [e-mail]
              or
             BCITH
             Bill Gajda, 514/392-2466
             E-mail: [e-mail]