IBM and Cable&Wireless Worldwide Announce UK Smart Energy Cloud

By the End of the Decade One in Four UK Power Stations are Set to Close and UK Gas Production is Expected to be Half of Current Levels, yet Demand for Electricity is Expected to Increase by More than 50 Per Cent by 2050

LONDON, March 21, 2011 - IBM (NYSE: IBM) and Cable&Wireless Worldwide (LSE: CW.L),
today jointly announce their collaboration to develop a new intelligent data
and communications solution, UK Smart Energy Cloud, to support the UK's Smart
Meter Implementation Programme, which aims to rollout more than 50 million
smart meters in the UK.

UK Smart Energy Cloud has the potential to provide a complete
overview of energy usage across the country and pave the way for easier
implementation of a smart grid. The solution will utilise the extensive
experience IBM has gained from leading and implementing smart grid programmes
around the world and its proven enabling software and middleware. The
solution will be supported by C&W Worldwide's extensive, secure
next-generation network and communications integration capability.

There has never been a more challenging time for the energy
industry with decisions being taken to protect the country's energy supply
that will have significant implications for everyone in the UK. Both smart
meters and the smart grid are significant steps on the journey to a new
energy future, potentially changing for the better the way we consume and
distribute energy.

Solution that grows as you grow

UK Smart Energy Cloud will have the ability to gather data
many times a day, from any smart meter in the country and store it centrally
in a secure, purpose built, UK based hosted cloud environment. Data can then
be sent to energy retailers for assessment, therefore ensuring consumers
receive more accurate bills. In addition, Distributor Network Operators
(DNOs) will also receive this data which will enable smart grid
functionality.

As the number of meters and the level of functionality is set
to grow significantly, the UK Smart Energy Cloud shall grow in response,
without the need to replace or significantly modify the solution. It will
offer a secure, fully integrated and affordable solution which will link with
existing industry systems.

Energy retailers will not need to make expensive up-front
investments in hardware, systems, people, or the communications network.
Instead, they can have confidence in deploying smart meters, knowing that any
meters inherited from other retailers can be switched with no service
disruption. For consumers, this means switching retailers will become easier
and more transparent.

"As we start the journey towards a low carbon economy smart
meters will drive a wave of change in the energy system and are set to become
an increasingly important part of the nation's critical infrastructure", says
Laurence Carpanini, Director of Smart Meters and Smart Grids, IBM UK &
Ireland. "With this collaboration, we can provide the UK with a flexible,
intelligent solution based on proven technology. We can support the national
Smart Meter Implementation Programme and help communities become smarter,
more connected and in turn, more sustainable."

Matt Key, Managing Director of Enterprise at C&W Worldwide,
comments: "We believe a collaboration of this kind is the most natural
approach to achieving an end to end solution for a complete smart metering
roll-out and making smart grid a reality. The challenge is for smart meters
to reach the entire UK population and this will require a combination of
enabling solutions, such as GPRS, radio and Power Line Carrier to make sure
it's cost effective. However, it is the network connecting it all and
intelligent data management, that is central to the smart agenda's success.

"This alliance offers us exciting opportunities to work
together on developing innovative solutions to create a smart grid, the next
era of energy distribution in the UK, and support the Government's long-term
environmental strategy to cut emissions by 80 per cent by 2050."

Proven global expertise

IBM has a long history of expertise in smart grid projects,
which range from innovative research projects to full scale deployments. In
the UK IBM is currently advising three of the six largest energy retailers on
transforming their business in preparation for smart metering. Globally IBM
has been involved in more than 150 smart grid programmes in mature and
emerging markets. Current global projects include working in Malta to create
the first nation-wide smart grid and a pilot project with DONG Energy in
Denmark to install remote monitoring and control devices to gain information
about the state of the grid.

C&W Worldwide has a strong heritage in the UK utility sector
through the assimilation of Energis, THUS and Your Comms. It has more than
1,100 operational network sites, many co-located at substations and on the
transmission companies' estate, and in excess of 30,000 route kilometres of
fibre wrapped around most of the earth wire of the UK's energy transmission
networks.

Notes to Editors:

Cloud Computing:

Cloud computing is a new model for delivering IT whereby
server, storage and applications are delivered via internet based
technologies. The model differs from traditional IT service provision via the
ability of customers to scale-up and down their usage as required and the
capability to allow pricing to be determined by usage - i.e. on a
pay-as-you-go basis.

Technical information:

UK Smart Energy Cloud is built on IBM's scalable WebSphere(R)
enterprise messaging infrastructure and uses an Informix time-series database
at its core. Security, monitoring and management is provided by Tivoli(R)
products. The solution operates in a sideways-scalable, managed
infrastructure, using virtualisation to achieve a robust, reliable,
cost-effective solution.

Cable&Wireless Worldwide is responsible for the
next-generation operational communications network that the safe transmission
of electricity in the UK depends on, and which also enables the next era of
power transmission in the UK. The network platform Cable&Wireless Worldwide
provides sets a power utility standard which will solve problems associated
with the provision of high performance telecommunication services for
demanding high voltage (HV) protection, control and other operational
applications in a harsh electrical environment.

For more information on IBM: www.ibm.com/energy

About Cable&Wireless Worldwide:

Cable&Wireless Worldwide is a leading global telecoms company
providing a wide range of high-quality managed voice, data, hosting and
IP-based services and applications to large multinational companies,
governments, carrier customers and resellers across the UK, Asia Pacific,
India, Middle East & Africa, Continental Europe and North America.
Established in the 1860s, Cable&Wireless Worldwide helps more than 6,000
organisations deliver their goals. The Group's vision is to be the first
choice for mission critical communications.

Reaching 20,500km in length, Cable&Wireless Worldwide owns the
UK's largest fibre network dedicated to business users of telecoms, and
provides ubiquitous nationwide access through a combination of fibre,
digital, microwave, radio and leased circuits. The network has presence in
over 400 towns and cities in the UK, with more than 850 unbundled exchanges
covering 55% of the population.

Internationally, Cable&Wireless Worldwide's global
next-generation network (NGN) stretches to more than 500,000km, including
interests in 69 global cable systems, enabling connectivity to 153 countries.
The Group's IP-based Multi-Service Platform operates across the NGN, offering
a single environment on which voice and data applications can be converged to
drive business efficiencies. Cable&Wireless Worldwide's network is uniquely
designed with inbuilt resilience.

With more than 6,200 colleagues globally, Cable&Wireless
Worldwide is committed to delivering exceptional customer service and
developing long term partnerships with its customers.

To find out more, please visit www.cw.com.

    Contacts:

    UK SMART ENERGY CLOUD

    Lucy Chapman          IBM                       +44(0)7920823429
                                                    Lucychapman@uk.ibm.com

    James Hill/Liv Nixon  Cable&Wireless Worldwide  +44(0)7822-804-975
                                                    +44(0)1344-818-888
                                                    liv.nixon@cw.com
                                                    james.hill@cw.com

Lucy Chapman, IBM, +44 (0)7920823429, Lucychapman at uk.ibm.com; James Hill/Liv Nixon, Cable&Wireless Worldwide, +44 (0)7822-804-975, +44(0)1344-818-888, liv.nixon at cw.com, james.hill at cw.com