Interim Management Statement

Telecom Plus PLC
07 February 2008


                        Telecom plus PLC (the 'Company')

                          Interim Management Statement

                         Quarter Ended 31 December 2007

Telecom plus PLC (trading as the Utility Warehouse), which supplies a wide range
of utility services (gas, electricity,  fixed line telephony, mobile telephony
and broadband internet) to both residential and business customers, today issues
its Interim Management Statement for the quarter to 31 December 2007.

Highlights

   • Performance ahead of current market expectations
   • Number of services up by over 16,000
   • Cash balance at end of quarter £37.6 million
   • Full year pre-tax profits expected to exceed £16.5 million
   • Projected total dividend of 14p for the full year (2007: 8p)

Operating Review

Trading during the quarter shows a continuation of the positive trends referred
to in the interim results for the six months ended 30 September 2007 as
reported on 29 November 2007.

The Company's Distributors remain enthusiastic about the new opportunities for
growing their businesses resulting from the changes announced at the Company's
sales conference in October. This is being reflected in more new Distributors 
joining the business, in addition to a resumption of growth in the size of the
customer base and a significant increase in the number of services supplied to
them.

Customer numbers reversed the downward trend of the previous 18 months with an
increase to 212,712 during the quarter. This total includes further steady
growth experienced in the Business Club, which now has 8,427 customers.

The number of services provided rose by over 16,000 to 568,742 during the
quarter, substantially in excess of the 10,450 growth reported for the first
half of the current year, reflecting an increase to 3.07 (September 2007: 3.03)
in the average number of services taken by each member of the residential club.

Cash Flow

Cash flow during the quarter remained strong with the cash balance increasing to
£37.6 million by the end of the period. This was notwithstanding the share
buy-back programme referred to below, but included our receiving repayment of a
£2.0 million long-term loan we had made to Oxford Power Holdings in 2002.

The Company purchased 100,000 of its shares at a cost of £0.2 million during the
quarter, with a further 866,000 shares being purchased during January 2008 at a
cost of £1.6 million. This takes the total number of shares purchased since 
approval was received to commence the buy-pack program last summer to 3,084,000
at an average cost of 183.2p per share.

Outlook

Following the recent price increases announced by other major suppliers of
domestic energy, we increased our own energy prices from 1 February 2008 by an
average of 7% for electricity and 12% for gas. These price rises are lower than
the average price rises announced by the 'Big 6' suppliers who increased their
prices during January, and in addition, our customers will benefit from our new
prices becoming effective from a later date. This reflects our commitment to 
providing our customers with consistently good value on all the services we
supply.

We anticipate an improvement in our growth rate during the remainder of the
current year driven by the many new Distributors joining the business; greater
activity by existing Distributors supported by the new Head Office sales team;
the recent trend towards lower churn; and an increasing tendency amongst
consumers to seek a better value supplier in what is becoming an increasingly
difficult economic climate.

The Company's future results will reflect both the increase in the number of
services supplied as well as higher retail  energy prices. Pre-tax profits for
the current year ending 31 March 2008 are therefore expected to exceed £16.5 
million, and on that basis the board would intend to recommend a final dividend
of 10p per share (making a total dividend of 14p for the full year).

Preliminary Results Date

Preliminary results for the year ended 31 March 2008 are expected to be 
announced on Thursday 22 May 2008.

Charles Wigoder, Chief Executive said:

'Our strong performance in the current year has continued during the third
quarter. We are benefiting from the initiatives taken over the last year to
stimulate growth in the number of services provided to our increasing customer 
bases.

'We now expect our full year results and dividends to exceed current market
expectations.'

For more information please contact:

Telecom plus PLC

Charles Wigoder, Chief Executive                        020 8955 5000
Richard Hateley, Finance Director

Smithfield

Tania Wild / Reg Hoare                                  020 7360 4900

Information in this announcement is based upon unaudited management accounts.
This announcement includes certain forward looking statements which are based on
current expectations and are subject to uncertainties and risks that could cause
actual results to differ materially from any expected future events or results
referred to in these forward looking statements. Unless otherwise required by
applicable law, regulation or accounting standard, we do not undertake any
obligation to update or revise any forward looking statements, whether as a
result of new information, future developments or otherwise.



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