Telecom Plus Regulatory News (TEP)

13 July 2011

Telecom Plus PLC (the "Company")

Interim Management Statement

Telecom Plus PLC (trading as the Utility Warehouse), which supplies a wide range of utility services (gas, electricity, fixed line telephony, mobile telephony and broadband internet) to both residential and business customers, today issues its Interim Management Statement to cover the period from 1 April 2011 to 12 July 2011. This incorporates information relating to the performance of the business for its first quarter ended 30 June 2011, to coincide with its Annual General Meeting ("AGM") being held later today.

Highlights

·; Continuing organic growth

·; Strong cash generation

·; Significant improvement in customer quality

·; Customer numbers up by 7,388 during the quarter to 378,738 (30 June 2010: 351,442)

·; Number of services up by 38,140 during the quarter to 1,209,276 (30 June 2010: 1,075,363)

Operating Review

We have seen an encouraging start to the current year, with organic growth significantly ahead of the levels we achieved in the corresponding period last year.

Overall customer numbers increased during the first quarter by 7,388 (Q1 2011: 5,680), whilst the number of services provided rose by 38,140 (Q1 2011: 30,847). It is particularly pleasing to have seen a substantial rise in the proportion of new members applying for at least 4 different core services from us, and annualised growth in the number of mobile services holding steady at around 60% for a second consecutive quarter.

Following the successful sales conference held at the beginning of April, our distributors are making steady incremental progress in gathering higher quality customers, as shown by the further improvement in the average number of services taken by residential club members (which has increased from 3.43 to 3.48 during the quarter). Activity levels remain high with a net increase of around 1,500 distributors during the quarter.

Demand from new customers for our exclusive CashBack card remains at record levels, with over 80,000 cards now in issue. Penetration of these cards within our residential club customer base has increased from 17% to 27% over the last 12 months.

We have just completed the final phase of refurbishing our office headquarters in north-west London, and look forward to consolidating virtually all our employees into this building over the next few weeks.

Customer, Distributor and Service Numbers

Cash Flow

Underlying cash flow remains in line with management expectations, with positive cash generation of over £10m during the period. We anticipate that our short term borrowings as at 30 June 2011 of approximately £5.0m (31 March 2011: £15.5m) will have been eliminated and replaced by a positive cash balance of a similar size on 30 September 2011, notwithstanding the £9.7m cost of paying the proposed final dividend for last year which is expected to be made on 5 August 2011.

Outlook

We expect a steady increase in our current rate of organic growth over the coming months, driven by the large number of new distributors joining each month, and continuing strong demand for our unique multi-utility proposition.

We are investing considerable resources in developing an updated internet presence, which is due to be launched this summer. This will not only enable our distributors to sign up new members more efficiently, but will also give us an effective fulfilment mechanism for our customer referral scheme.

Several of the 'Big 6' energy suppliers have recently announced price rises, averaging around 15%-17% for dual fuel customers. As we are affected by similar cost pressures, it is reasonable to expect that we will shortly also announce higher tariffs, whilst maintaining our current competitive position.

Our financial performance since the year end has been in line with management expectations, and we anticipate that our half yearly report (which is expected to be announced on 22 November 2011), will show earnings, pre-tax profits and organic growth significantly ahead of the figures for the comparable period last year.

Andrew Lindsay, Chief Executive said:

"We have seen an encouraging start to the current year, with organic growth significantly ahead of the levels we achieved in the corresponding period last year."

"We expect a steady increase in our current rate of organic growth over the coming months, driven by the large number of new distributors joining each month, and continuing strong demand for our unique multi-utility proposition."

"We anticipate that our half yearly report will show earnings, pre-tax profits and organic growth significantly ahead of the figures for the comparable period last year."

For more information please contact:

Telecom Plus PLC

Andrew Lindsay, Chief Executive 020 8955 5000

Chris Houghton, Finance Director

Peel Hunt

Richard Kauffer / Dan Webster 020 7418 8900

Brewin Dolphin

Nick Owen 0845 059 6412

MHP Communications

Reg Hoare / Katie Hunt 020 7357 9477

About Telecom Plus PLC:

Telecom Plus which owns and operates the Utility Warehouse brand, is the UK's only fully integrated provider of a wide range of competitively priced utility services spanning both the Communications and Energy markets.

Customers benefit from the convenience of a single monthly bill, consistently good value across all their utilities and exceptional levels of customer service. The Company does not advertise, relying instead on "word of mouth" recommendation by existing satisfied customers in order to grow its market share.

Telecom Plus also has a wholly owned subsidiary called TML purchased in 2002, which supplies predominantly fixed line telephony to small and medium sized business customers through a network of authorised resellers and dealers.

Telecom Plus is listed on the London Stock Exchange (Ticker: TEP LN). For further information please visit: www.telecomplus.co.uk.