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March 5, 2000

Telewest And Andersen Consulting Form New Company

(COMPANY PRESS RELEASE) Andersen Consulting, a leading global management and technology consultancy, and Telewest Communications announce the formation of a new company to develop leading edge, interactive broadband communications services.

By CBR Staff Writer

The new company, based in London, is owned jointly by Andersen Consulting and Telewest, led by the Acting Chief Executive Officer, Mr. Arjang Zadeh. Mr. Zadeh is currently with Andersen Consulting where he is an Associate Partner in the organization’s broadband solutions group. The new company will operate independently and starts with a team of 30 professionals, drawn from Andersen Consulting.

The joint venture intends to develop, customize and license innovative solutions and be at the forefront of this rapidly emerging industry. Most of the services that will be offered through broadband channels in 5 years time do not exist today. Full Video on Demand will be the joint venture’s first product to market, later this month. Other services to be offered by the joint venture will include interactive TV, wire free broadband home, music Pay Per View, interactive advertising, games, information, and eBanking.

According to a recent industry analysis by Jupiter Research, one in three homes in Western Europe approximately 50.8 million households will receive digital television by 2003, compared with less than one in 10 in 1999. Andersen Consulting’s own research estimates that the market for the new company’s services in Europe alone is worth over GBP7 billion.

Telewest is both a part owner and the first customer of the new company. The relationship between Telewest and Andersen Consulting has grown out of the work Andersen Consulting has done with Telewest to help design its digital interactive platform. The potential worldwide customers of the new company will include cable operators, telecom operators, digital terrestrial operators and satellite operators. The company benefits from the knowledge capital and relationships that Andersen Consulting has established with traditional industry leaders and new and emerging market participants of Andersen Consulting. Acting CEO Mr Zadeh said:

This is an explosive growth market, in which CEOs of major network companies know that broadband interactive services are crucial for their future. We have the ability to lead in this market.

Tony Illsley, Chief Executive of Telewest, said:

This joint venture will unleash the full potential of broadband services for Telewest and other operators. Today’s announcement provides us with technological leadership as we continue to be first to UK consumers with new broadband services.

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Chris Cowan of Andersen Consulting said:

This venture is a further illustration of our strategy to accelerate delivery of the broadband world both in Western Europe, and in the longer term North America and the Far East.

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