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World Telecom PLC (WDT)


Wednesday 08 December, 1999

World Telecom PLC

Sale of Internet Division

World Telecom PLC
8 December 1999

World Telecom plc
('World Telecom' or the 'Company')

Sale of internet division

Following the statement of 26 November 1999 when the Company announced the
potential disposal of non-core businesses, World Telecom announces today that
it has sold its internet division to limited for £595,960 (net of
liabilities owed by the internet division which will be paid by the Company).
The transaction will reduce the Company's indebtedness and allows it to
concentrate on its core business activity of being a provider of value added
telecoms services in the UK.

The current turnover of the internet division is less than £10,000 for the 10
months to end-October 1999. The internet division has been primarily engaged
in developing a web-based e-mail service for Freeserve under the contract
World Telecom won from Freeserve in June this year. The benefit of this
contract has been assigned to limited as part this disposal.

The directors of World Telecom are of the view that the level of investment
required to make its internet division successful would place an unacceptable
strain on the financial resources of the Company. 

Peter Neilson, who is a director and shareholder of World Telecom, is the
Chairman and a shareholder of limited and accordingly this transaction
will be disclosed in the Company's next set of annual financial statements.

In addition, the Company announces that Peter Neilson has resigned from his
executive position in World Telecom and has become a non-executive director of
the Company with immediate effect.  He will receive a fee of £20,000 per annum
in respect of his services to World Telecom in his new role.


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