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KCOM Group PLC (KCOM.L) Pre-close Statement

KCOM Group PLC (KCOM) issues the following statement for the period ending 31 March 2013, prior to entering the close period for its preliminary results.

KCOM Group (“the Group”) announces it has entered a close period, ahead of its preliminary results announcement for the year ended 31 March 2013. The Board confirms that trading has remained in line with market expectations.

The preliminary results will be released on 11 June 2013 and will include, as previously stated, an update on the Group’s future dividend policy.

Pension Update

The Group is pleased to announce also that it has reached an agreement with the Trustees of its Defined Benefit Pension Schemes (“the Schemes”) to create an asset backed Partnership (“the Partnership”),  providing the Group with an efficient mechanism of funding the Schemes’ current deficit position.

The Group has transferred into the Partnership its interest in certain freehold properties, entitling the Schemes to an annual income distribution of £1.05 million, rising in line with the Consumer Price Index (CPI), over a potential period of 15 years.  The total value of this income distribution to the Schemes is £10.0 million, which the Company anticipates will attract full corporation tax relief for the year ending 31 March 2013.  In recognition of that value and the security provided to the Schemes by the income stream, the Group has agreed with the Trustees that no deficit repair contributions will be due in respect of the financial year ending 31 March 2014.   The agreement was reached ahead of the Scheme’s 2013 triennial valuation.

The Group continues to work closely with the Trustees on further funding options, including the ability to provide additional efficient income streams through the Partnership and envisages being able to provide an update as to the Schemes’ funding position and deficit repair plan at the preliminary results announcement in June.

About KCOM PLC

KCOM Group PLC is a leading provider of communications services to organisations and consumers, serving customers through four market focused brands.

KC provides a range of telephony and broadband services to consumers and businesses in Hull and East Yorkshire. Our other three brands serve organisations throughout the UK. Eclipse provides communications services to small and medium businesses across the UK, connecting them to customers, partners and suppliers and improving their productivity and flexibility, and helping them to grow.  Kcom works with some of the UK’s biggest names, delivering communications services that enable them to be flexible, efficient and more responsive to their customers. Smart421 delivers high-end consultancy, integration and management of business-critical systems for enterprise customers.

We apply the collective knowledge and expertise of our people and our partners to help our customers harness the power of communications. Our focus is on the delivery of inspiring customer experiences, and finding new and better ways to connect people.

For further information please contact:

Bill Halbert, Executive Chairman / Paul Simpson, CFO
KCOM Group PLC
01482 602595

Cathy Phillips, Investor Relations
KCOM Group PLC
07778 335735

Matt Ridsdale/Lulu Bridges/Mike Bartlett
Tavistock Communications
020 7920 3150