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World Telecom PLC (WDT)

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Thursday 16 December, 1999

World Telecom PLC

Offer Talks Terminated but Other Options Sought

World Telecom PLC
16 December 1999

('World Telecom' or 'the Company')

On 15 November 1999, World Telecom announced that it was in discussions that
may or may not lead to an offer being made for the Company.  Those discussions
did not produce a proposal that was capable of being put to shareholders and,
accordingly, discussions with those potential offerors have now been
terminated. However the board of World Telecom remains committed to exploring
all options to realise shareholder value, including seeking a merger or offer
for the Company. 
 
The Company issued a trading statement on 26 November, which explained that
the Company faced a difficult working capital position and this remains the
case. The bankers to the Company have been kept informed and remain
supportive. The Company also announced that it was actively investigating a
range of options to address this issue including the potential disposal of
non-core businesses and the raising of additional finance. Since that
announcement the Company has disposed of World Telecom Italy and its internet
division and continues to pursue options for further disposals.  

As also announced on 26 November 1999 World Telecom is also currently
exploring the possibility of issuing new equity.  Shareholders should be aware
that, as previously announced, any equity fundraising would be undertaken at a
significant discount to the current market price. The Company expects to make
a further announcement on this matter in the near future.


Enquiries:

World Telecom plc       0171 384 5000
David Dey


                                                                                                                                                                                         

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