World Telecom PLC

90% of World Telecom Italy Sold & New MD Appointed

World Telecom PLC
1 December 1999

World Telecom plc
('World Telecom')

Appointment of Managing Director and Sale of 90% Italian subsidiary World
Telecom Italy ('WTI')

World Telecom announces today that Paul Walsh was appointed to the board with
effect from 30 November 1999 as Managing Director, having previously been
director of sales at the Group's principal trading subsidiary.  David Dey who
has been acting as Executive Chairman since May this year, reverts to his
former role as Non-executive Chairman.

Following a strategic review of its European operations the Board of World
Telecom has decided to focus on its core business in the U.K. and to reduce
its financial exposure overseas.  As a first step in this process World
Telecom also announces today that, on 29 November 1999, it sold its 90%
shareholding in WTI, its Italian subsidiary, to Geltel Limited for nominal
consideration of £1.00.  World Telecom has also agreed to write off WTI's
inter-company indebtedness of £870,000.  As Geltel Limited's sole shareholder
is Peter Gelardi, who is also a director and shareholder of World Telecom,
this transaction will constitute a related party transaction under the AIM

WTI is a provider of value added telecoms services in the Italian telecoms
market.  As at 30th June 1999 WTI had negative net assets of £167,000.  Losses
for the six months ending on 30th June 1999 were £699,000.  The disposal will
result in a profit on disposal of £12,000 (based on October 1999 figures) and
will have a positive effect on World Telecom's cash flow.

In the opinion of the directors of World Telecom, having consulted with its
nominated adviser, Collins Stewart Limited, the terms of the transaction are
fair and reasonable so far as the shareholders of World Telecom are concerned.

On 26 November 1999, the company announced a trading update and that it was in
discussions which may or may not lead to an offer for the company.  These
talks with potential offerors remaining ongoing and shareholders will be kept
informed of developments as and when appropriate.

Enquiries:  Paul Walsh       0171 384 5000
            Tim Anderson     0171 466 5000