Acquisition for Securicor

BRITISH TELECOMMUNICATIONS PLC
27 July 1999

                               

            BT TO ACQUIRE MINORITY STAKE IN CELLNET
                               

BT today announced that it has agreed to acquire Securicor's

40 per cent shareholding in Cellnet for £3.15 billion.

Securicor shareholders will be offered the opportunity to

receive their consideration in cash or loan notes.  The cash

required will be provided from BT's own resources.

     The acquisition of the Securicor shareholding in Cellnet

will increase BT's investment in the rapidly growing mobile

telecommunications market.

     Cellnet, of which BT already owns 60 per cent, is the

UK's second largest mobile telephone business with over five

million customers.  Profit before tax for the year ended March

31, 1999, was £118 million.  Net assets as at March 31, 1999,

were £431 million.

     The acquisition is conditional upon, among other things,

the approval by Securicor shareholders of the transaction and

is likely to be completed in the last quarter of 1999.

     The transaction is also subject to regulatory approvals

which BT  expects to be forthcoming.

     

     Sir Peter Bonfield, chief executive of BT, said:

'Following the success of our partnership with Securicor, BT

is pleased to have the opportunity to increase its investment

in the UK mobile telephony market at this exciting time.

     'The acquisition will leave us well placed to capitalise

on the opportunities presented by Second and Third Generation

Mobile technology in the highly competitive UK mobile market.

We look forward to winning a 3G licence and building the UK's

leading Third Generation business.'