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He said there was speculation that they could have been kidnapped in revenge for the killing of a senior member of the Shi'ite Mehdi Army militia by Coalition troops in Basra last week.
He says: "My name is Peter. I have been held here for nearly eight months now."
Arabiya said the man goes on to call on Prime Minister Gordon Brown to free nine Iraqis to secure the release of the five Britons.
"They immediately informed the British because they had been told these are British hostages.
"But it is my understanding, the bodies are several months old, that they died - however they died - several months ago, so they will have to be identified by DNA."
Mr Miliband said the government was "working intensively" towards securing the release of the hostages