RNS Number:7586Q
Marconi Corporation PLC
10 October 2003


    MARCONI OUTSOURCES MICROWAVE PRODUCT MANUFACTURING TO ELCOTEQ IN GERMANY    

         340 employees to transfer to new owners; Marconi to receive           
                    upfront cash payment of EUR 10 million.                     

LONDON - October 10, 2003 - Marconi Corporation plc (London: MONI and NASDAQ:
MRCIY) has agreed to outsource, through its German subsidiary, the manufacture
of its Fixed Wireless Access products and associated operations in Offenburg,
Germany, to Elcoteq Network Corporation.   Elcoteq, Europe's largest electronics
manufacturing services company, will continue the manufacture of digital
microwave equipment for Marconi.  The agreement is part of Marconi's strategy to
continue to reduce the cost and enhance flexibility of manufacturing its
portfolio of products for the worldwide telecommunications market.

In return, Elcoteq will pay Marconi EUR 10 million (approximately # 7 million)
in cash. 75 percent of the cash consideration will be paid when the agreement
closes, which is anticipated to be during November 2003. The remaining cash will
be retained in ESCROW pending final completion.  It is anticipated that 340
current Marconi employees at the site will transfer employment to Elcoteq.  The
transfer is due to take effect during November, 2003.

Commenting, Mike Donovan, Marconi's chief operating officer, said: "This
outsourcing agreement reflects Marconi's strategy to help reduce the cost and
enhance the flexibility of our product manufacturing operations, whilst enabling
third party manufacturing specialists to provide the ongoing, efficient supply
of our volume products.

"Elcoteq is an electronics manufacturing services company that concentrates
specifically on communications technology products, and therefore an ideal
partner for us. This agreement makes good sense for all parties.  Marconi will
retain our its mechanical engineering and logistics operations, and over 100
personnel, at the Offenburg site."

Lasse Kurkilahti, president and ceo of Elcoteq, said:  "This is an important
step in the implementation of Elcoteq's communications technology strategy. The
products manufactured in Offenburg represent the company's strategic core
business and are technically demanding to make. This acquisition further
strengthens our radio frequency, system integration and testing expertise. We
are also very happy to welcome Marconi as one of our customers because their
products are employed in almost all the major telecom operators' networks."

A sum representing the net cash proceeds from the transaction will be paid into
the Marconi Corporation Redemption Escrow Account and will be used to fund a
further partial redemption of the Group's Junior Notes in due course.

ENDS/...


About Marconi Corporation plc Redemption Escrow Account (MREA)

When the balance of the MREA reaches US$30 million, this triggers a mandatory
partial redemption of Marconi's Junior Notes at 110 per cent of par value.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services and
solutions company. The company's core business is the provision of innovative
and reliable optical networks, broadband routing and switching and broadband
access technologies and services. The company's customer base includes many of
the world's largest telecommunications operators.

The company is listed on the London Stock Exchange under the symbol MONI and on
NASDAQ under the ticker MRCIY.  Additional information about Marconi Corporation
can be found at www.marconi.com.

About Elcoteq
Elcoteq Network Corporation is the largest European electronics manufacturing
services (EMS) company and one of the global leaders in its field. The company
focuses on communications technology products and customers. Elcoteq provides
globally end-to-end solutions consisting of design, NPI, manufacturing, supply
chain management and after-sales services for the whole lifecycle of its
customers' products. The company operates on three continents in 12 countries
and it has about 11,000 employees. Elcoteq's consolidated net sales in 2002
totaled MEUR 1,840. Elcoteq Network Corporation is listed on the Helsinki
Exchanges. More information on the company at www.elcoteq.com.

Copyright (c) 2003 Marconi Corporation plc. All rights reserved. All brands or
product names are trademarks of their respective holders.

This press release contains forward-looking statements with respect to products,
partners, customers, future growth and other matters. Please refer to the Form
20-F report and Form 8-K reports filed by Marconi Corporation plc with the
United States Securities and Exchange Commission for a discussion of risks that
could cause actual results to differ materially from such statements.



Press enquiries
Joe Kelly tel +44 207 306 1771, email joe.kelly@marconi.com
David Beck tel +44 207 306 1490, email david.beck@marconi.com

Investor enquiries
Heather Green tel +44 207 306 1735, email heather.green@marconi.com

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