COLT Telecom Group plc - Banco Best

PRESENTATION OF FINANCIAL INFORMATION
We prepare our financial statements in British pounds sterling. In this offering memorandum, references
to "U.S. dollars" or "$" are to the currency of the United States, references to "British pounds sterling,"
"pounds," "£," "pence" or "p" are to the currency of the United Kingdom, references to "deutschmarks" or
"DM" are to the currency of the Federal Republic of Germany, and references to "euros" or "€" are to the
common currency of the eleven members of the European Union. Solely for your convenience, in this offering
memorandum we have translated, where indicated, British pound sterling amounts into U.S. dollars. We also
translate euro and deutschmark amounts into British pounds sterling. These translations are not
representations that the British pound sterling amounts actually represent such U.S. dollar amounts, or that
the euro or deutschmark amounts actually represent such British pound sterling amounts or that such amounts
could be converted at the rate indicated. All translations in this offering memorandum are based on the noon
buying rate in the City of New York for cable transfers in British pounds sterling or euros as certified for
customs purposes by the Federal Reserve Bank of New York for the dates specified. Unless otherwise
indicated, we have translated British pounds sterling into U.S. dollars at an exchange rate of $1.6457 per
£1.00, the noon buying rate on 30 September 1999. On 9 December 1999, the noon buying rate was $1.6230
per £1.00.
GENERAL INFORMATION
Our company and our wholly-owned subsidiaries, COLT Telecom Europe Ltd. and COLT Telecom Ltd.,
were incorporated as English companies in 1996 and, through a series of transactions, acquired the operating
companies that had conducted our business since 1992. Our financial information presented in this offering
memorandum includes the financial information of COLT and our subsidiaries. Where appropriate, this
financial information also includes our operating companies. The presentation of our financial information is
described in greater detail in our audited financial statements and the related notes included as Appendix C to
this offering memorandum.
We prepare our financial information in accordance with accounting principles generally accepted in the
United Kingdom (U.K. GAAP), which differ in certain respects from accounting principles generally
accepted in the United States (U.S. GAAP). The principal differences between U.K. GAAP and U.S. GAAP
are summarised in Note 27 to our audited financial statements included as Appendix C to this offering
memorandum.
The "COLT' tradename and logo are registered trademarks in Austria, Benelux, the Czech Republic,
Hungary, Italy, Monaco, Russia, Spain, Switzerland and the United Kingdom, the "COLT' logo is a
registered trademark in Germany, and the designation "COLT Telecommunications France" is a registered
trademark in France. Our applications for registration of the "COLT" tradename and logo are pending in
Denmark, the European Union, Finland, Ireland, Poland and the United States. Our application for
registration of the "COLT" tradename, our logo and colour registrations are pending in Norway and our
colour registration is pending in the United States. In addition, our application for our colour logo and our
trademark applications for COLTEuroCell, COLTEuroFrame, COLTEuroFrameplus, COLTEuroLan and
COLTEuroLink are pending in the European Union.
Enforceability of Certain Civil Judgments
We are incorporated under the laws of England and Wales, and most of our directors and executive
officers and certain of the experts named in this offering memorandum are residents of the United Kingdom or
other countries outside the United States. Substantially all of our assets and the assets of such persons are
located outside the United States. As a result, it may not be possible for investors to effect service of process
within the United States upon us or upon such persons, or to enforce against us or against such persons in
courts inside or. outside the United States, judgments of courts inside the United States based upon the civil
liability provisions of United States securities laws or to enforce, in an original action brought outside the
United States, rights based on such provisions.
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