RNS Number:7220U
Pipex Communications PLC
28 January 2004

                            PIPEX Communications plc

                            Year End Trading update



Following the close of its 31st December 2003 year end, PIPEX Communications plc
("PIPEX"), the telecoms network operator and provider of broadband solutions, is
pleased to announce that the integration of the 5 acquired businesses (GX
Networks Limited, XTML Limited, CIX Limited, Firstnet Services Limited and PIPEX
Internet Limited) has now been largely completed, on schedule, delivering
greater than expected cost savings.



PIPEX's broadband division experienced rapid growth in 2003 with customer
numbers increasing by 138% to over 100,000.  PIPEX now operates one of the
largest IP Stream data networks in the UK and is the fifth largest broadband
operator in the UK.



Through acquisition, the group has enhanced the range and scale of products in
its portfolio, which has led to a gross profit margin improvement from 25% to
43% by the end of 2003.



Following the acquisition of PIPEX Internet Limited in October 2003, we are
exploiting the benefits of additional scale and extracting significant
operational efficiencies. As a result, the Group has become EBITDA positive and
operationally cash generative, and the Board expects this position to strengthen
through 2004 as top line growth moves forward and further cost savings are
realised.



Based on good market fundamentals, particularly in broadband, we expect strong
growth over the next year and, following the series of acquisitions in 2003, we
enter 2004 with the infrastructure and staff in place to exploit this
significant market opportunity.



                                     -ends-


PIPEX Communications plc                   020 7766 6909
Peter Dubens, Chairman

Financial Dynamics                         020 7831 3113
Juliet Clarke / Ben Way / Edward Bridges






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