RNS No 0014k
INTEROUTE TELECOMMUNICATIONS PLC
9th October 1997

            INTEROUTE TELECOMMUNICATIONS PLC
                      "INTEROUTE""


Interoute  Telecommunications PLC announces that  it  has
today disposed of its 51% shareholding in Telecom FM  Ltd
("TFM") for a cash consideration of #425,000.  Under  the
terms  of  the  Sale Agreement, TFM has also  repaid  the
outstanding loan from Interoute to TFM of #1.2 million.

TFM  is  primarily a telecommunications products company,
specialising  in network access devices.   For  the  year
ended  31  May  1997,  TFM achieved a  turnover  of  #1.9
million  and incurred a loss before taxation of #240,000.
TFM's net assets at 31 May 1997 were #330,000.

The  shareholding has been purchased by TFM Group Limited
with  backing  from a venture capital  house.   Mr  Colin
Mulford  and  Mr  Simon  Taylor  are  Directors  of,  and
together  have  an  interest in, TFM Group  Limited.   Mr
Mulford and Mr Taylor are currently Directors of TFM  and
each  has  an  interest of 24.5 per  cent  in  the  share
capital  of TFM and a controlling interest in  TFM  Group
Limited.

The Directors of Interoute have agreed to the sale of TFM
because  TFM's  business  is  not  a  core  activity   of
Interoute.  They consider that the funds released by  the
sale  can  be  more  effectively utilised  by  supporting
Interoute's core activities in Europe.

The  Directors of Interoute, having consulted  with  John
East & Partners Limited, the Company's nominated adviser,
are  of  the  opinion that the terms of the disposal  are
fair  and  reasonable  so  far  as  the  shareholders  of
Interoute are concerned.

John   Mittens,   Chief  Executive  of  Interoute   said:

"Interoute originally took an interest in Telecom  FM  in
order  to  purchase  competitively priced  pre-programmed
diallers  which are installed in the customers' premises.
The  terms  of this transaction will enable Interoute  to
retain  the commercial advantages of attaining  the  same
competitive prices for diallers, while using the proceeds
of  the  sale to support our European network across  key
European markets."

END

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