Placing

Telecom Plus PLC
06 May 2005


               Telecom plus PLC (the 'Company' or 'Telecom plus')

                                     Placing



The Company is pleased to announce that it has conditionally raised £12.3
million (before expenses) by the placing (the 'Placing') of 6,000,000 new
ordinary shares of 5p each ('Placing Shares') at a placing price of 205 pence
per Placing Share. This represents 8.8 per cent. of the issued share capital of
the Company following the Placing, and a discount of approximately 1.4 per cent.
to the closing mid market price of 208 pence per Ordinary Share on 5 May 2005.

Under the Placing, the Placing Shares have been conditionally placed with
institutional investors by KBC Peel Hunt Ltd ('KBC Peel Hunt'). The board of
directors ('the Board') will use the net proceeds of the Placing to provide
further working capital and strengthen the Company's balance sheet.

The Placing Shares will be allotted credited as fully paid and will rank pari
passu in all respects with the Company's existing ordinary shares of 5p each,
including the right to receive all dividends and other distributions declared,
made or paid on or after the date of their allotment.
Application will be made to the UK Listing Authority and the London Stock
Exchange plc for the Placing Shares to be admitted to trading on the Official
List and the London Stock Exchange's market for listed securities ('Admission')
and it is expected that Admission will become effective and that dealings will
commence in the Placing Shares on 1 June 2005.

The Placing is conditional inter alia on the passing of the resolution to be
proposed at an Extraordinary General Meeting of the Company to be held at 11.30
a.m. on 31 May 2005 and Admission.



Background to and reasons for the Placing

The Company has grown significantly over the last few years, and as previously
reported, its turnover from supplying gas and electricity has become a
significant proportion of the Group's business. This rapid growth in energy
turnover from a low base has presented the Company with a new set of demands on
its financial resources.
As previously advised, the Company has begun to put in place a hedging programme
to protect against future volatility in the wholesale energy market, and its
strategy will be to maintain what the Directors believe to be an hedging profile
broadly in line with the industry. A systematic hedging policy requires a
substantially larger balance sheet than the Company currently has. In addition,
settlement terms in respect of energy are more demanding than those of the
Company's traditional telecoms business. The Company has therefore taken the
decision to seek to raise approximately £12m (net of expenses) through the issue
of the Placing Shares. The proceeds of the Placing will strengthen the balance
sheet and provide further working capital for the Company.

The Company expects to announce preliminary results for the year ended 31 March
2005 on 10 June 2005, and they are expected to be in line with market
expectations.

A circular to shareholders, including a notice of Extraordinary General Meeting,
is being posted to shareholders today. Copies of the circular to shareholders
will be available from KBC Peel Hunt Ltd, 111 Old Broad Street, London EC2N 1PH
until 31 May 2005 and will be submitted to the UK Listing Authority, and will be
available for inspection at the UK Listing Authority's Document Viewing
Facility, which is situated at; Financial Services Authority, 25 The North
Colonnade, Canary Wharf, London, E14 5HS.

6 May 2005

For further information:

Telecom plus PLC
Stephen Davis - Finance Director 020 8955 5000

Gresham PR Ltd
Neil Boom 020 7404 9000



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