2/3 UK on BT Broadband map

BT Group PLC
31 May 2002

                                                                    May 31, 2002

                 TWO THIRDS OF THE UK NOW ON BT'S BROADBAND MAP

   BT has extended its ADSL broadband service to a further 100 exchanges, and
  demand is going though the roof. With 1,115 exchanges now upgraded to offer
superfast internet access, BT Wholesale is connecting more than 11,000 new lines
  a week, working towards a target of one million connections by the middle of
                                   next year.

BT committed to these further exchange upgrades last month, when it became
apparent that with newly announced lower prices and fresh marketing initiatives,
greater demand would warrant the investment.

Paul Reynolds, chief executive of BT Wholesale, said: "I've been delighted by
the huge increase in demand for broadband since we slashed our prices and began
our vigorous marketing drives. The results are stunning: installations up to
more than 11,000 a week, and a customer base for BT Wholesale of almost a
quarter of a million connections. With results like this, and other BT
initiatives yet to kick in, I'm confident we'll more than meet the targets we
have set ourselves.

"Believe me - broadband Britain will soon be upon us, and BT Wholesale is
central to making this happen."

BT Wholesale's upgrade of 100 new exchanges over the past few weeks is in
response to a growing demand from broadband users, service providers and
end-user businesses, based on the new costs and wholesale prices announced in
March. Sixty six percent of households (73 per cent of current Internet users)
are now connected to broadband enabled exchanges.

The business is also committed to reviewing a further 500 exchanges to see if
demand is evident, and will be announcing the results of this review in June.

BT has responded to a huge surge in requests for information on broadband
availability by upgrading the availability checker on its web site, www.bt.com/
broadband.

BT is also looking at how to provide broadband to areas not yet served or
covered by future exchange upgrades.

Earlier this week it was confirmed that trials of a BT Wholesale service which
delivers fast internet by satellite would begin on May 31. This will be capable
of delivering internet downloads at a basic speed of 256 kbs right across the
UK, with 'always on' downloads of emails and selected internet pages. Higher
speeds of up to 4 Mbps will be available on a pay-as-used basis as the trial
progresses.

In order to continue rolling-out broadband BT is also looking for partners who
can share the investment of bringing broadband to less commercially viable
areas. BT intends to work with other businesses and public bodies to draw up
business models with a view to funding future developments of stimulating
broadband demand.

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