KCOM Regulatory News (KCOM)

1.

Name of the issuer

KCOM GROUP PLC

2.

State whether the notification relates to (i) a transaction notified in accordance with DTR 3.1.2 R, (ii) a disclosure made in accordance LR 9.8.6R(1) or (iii) a disclosure made in accordance with section 793 of the Companies Act (2006).

DTR 3.1.2R

3.

Name of person discharging managerial responsibilities / director

KEVIN WALSH

4.

State whether notification relates to a person connected with a person discharging managerial responsibilities / director named in 3 and identify the connected person

N/A

5.

Indicate whether the notification is in respect of a holding of the person referred to in 3 or 4 above or in respect of a non-beneficial interest

IN RESPECT OF HOLDING OF PERSON NAMED IN 3

6.

Description of shares (including class), debentures or derivatives or financial instruments relating to shares

ORDINARY SHARES OF 10p

7.

Name of registered shareholders(s) and, if more than one, the number of shares held by each of them

PRAXIS TRUSTEES LIMITED

8.

State the nature of the transaction

SALE OF ORDINARY SHARES UNDER KCOM GROUP PLC EMPLOYEE INCENTIVE PLAN

9.

Number of shares, debentures or financial instruments relating to shares acquired

NIL

10.

Percentage of issued class acquired (treasury shares of that class should not be taken into account when calculating percentage)

NIL

11.

Number of shares, debentures or financial instruments relating to shares disposed

SALE OF 437,456 ORDINARY SHARES TO COVER TAX AND NI LIABILITY FROM RELEASE OF SHARES UNDER KCOM GROUP PLC EMPLOYEE INCENTIVE PLAN

12.

Percentage of issued class disposed (treasury shares of that class should not be taken into account when calculating percentage)

0.08%

13.

Price per share or value of transaction

73.8027p

14.

Date and place of transaction

SHARES WERE SOLD ON 25 JULY 2012 IN LONDON

15.

Total holding following notification and total percentage holding following notification (any treasury shares should not be taken into account when calculating percentage)

1,153,963 (0.22%)

16.

Date issuer informed of transaction

25 JULY 2012

17.

Date of grant

N/A

18.

Period during which or date on which exercisable

N/A

19.

Total amount paid (if any) for grant of the option

N/A

20.

Description of shares or debentures involved (class and number)

N/A

21.

Exercise price (if fixed at time of grant) or indication that price is to be fixed at the time of exercise

N/A

22.

Total number of shares or debentures over which options held following notification

N/A

23.

Any additional information

N/A

24.

Name of contact and telephone number for queries

Will Chalk

0161 934 6429

Name of person responsible for making notification:

Will Chalk

Date of notification: 26 July 2012