LONDON, October 24 /PRNewswire/ --

- Major Marketing Push Planned for the 'NETSKI' Generation

LONDON, October 24 /PRNewswire/ --

- First to Launch National Cash Pre-pay Broadband Service

The Post Office(R), part of the Royal Mail Group, is launching
a new, national broadband service on Monday 29 October, specifically designed
to attract late adopters of broadband services and those looking for a
better, fairer and easier broadband option.

OFCOM has predicted that broadband uptake is set to rise by up
to 80 per cent by 2012(1). According to their research, the over-50s and cash
economy represents an untapped high value market, valued by the Post
Office(R) at GBP478 million.

Post Office(R) Broadband is a unique, reassuringly easy to use
service providing national coverage at a universal price, avoiding now common
'rural surcharges' imposed by most other ISPs. Users will also have the
option to pay for the service in cash at any of the 14,000 Post Offices(R)
nationwide, a payment alternative not offered by any other nationwide ISP.

As one of the UK's most trusted brands with an unparalleled
high street presence, the Post Office(R) is well-placed to maximise this
opportunity over the next five years.

The new services are primarily targeted at the 'NETSKI'
generation of 50-65 year olds with a high disposable income who are going
online for the first time - and customers wanting to pre-pay in cash.

Two high quality, fast broadband packages are available from
the Post Office(R), offering users headline speeds of up to 8MB. Broadband
Standard and Broadband Extra can also be bundled with the existing Post
Office(R) HomePhone service. Subscribers will be able to simply plug in and
go while technical support from UK call centres will be on hand 24/7.

A five year deal with BT Wholesale's network guarantees Post
Office(R) Broadband a national reach - from John O'Groats to Lands End - of
over 99.6 per cent of the country, while network support, kit maintenance and
back office support is also provided by BT. This infrastructure supports the
Post Office(R)'s commitment to provide its users with a reliable and fair
broadband service.

Alan Cook, managing director of the Post Office(R), said: "Until now,
some significant groups in society have missed out on all the internet has to
offer purely because broadband is perceived as a complicated luxury. With the
support of BT, we are now able to open up a new range of products and
services to these groups with a better, fairer and easier to use broadband
service that reflects the trust that older customers, in particular, have in
the 'People's Post Office(R).'

"This new addition to our telecoms product portfolio follows the launch
of our HomePhone service in 2005 and will help to secure the future success
of the Post Office(R) branch network."

The new broadband services will be backed by a GBP9 million
marketing campaign across TV, national print and online media, as well as
in-branch. The campaign will feature reformed boyband, Westlife, and will
break from 28 October 2007.

Current broadband uptake figures show that over 60 per cent,
that's over 15 million, households in the UK, now have an internet
connection, and broadband take up by the UK public has been faster than that
of any other new technology over the past five years(2).

Between now and 2012, up to 80 per cent of the UK population
is expected to have broadband(3). Research conducted by the Post Office(R)
shows that, by 2010, half of the additions to the broadband market will come
from the 'silver surfer' demographic. Despite being late adopters, the over
50s already account for 25 per cent of the UK online population and 30 per
cent of all time spent on the internet is by this age group. However, the
Post Office(R) has identified over six million potential users from older and
cash-dependent groups who remain offline due to confusion surrounding what
existing ISPs are offering and perceived complications to signing up.

For more information visit http://www.postoffice.co.uk; call free on
0800-434-6701, or visit your local Post Office(R) branch.

(1) OFCOM The Communications Market Report 2007

(2) OFCOM The Communications Market Report 2007

(3) OFCOM The Communications Market Report 2007

For more information please contact:

    Debbie Spitz or Debbie Howard
    Blue Rubicon
    +44(0)20-7260-2700
    firstname.lastname@bluerubicon.com

    Hayley Fowell
    Royal Mail
    Press Office
    +44(0)20-7250-2417
    148 Old Street
    London
    EC1V 9HQ
    hayley.fowell@postoffice.co.uk