Acquisition Infonet Germany

BT Group PLC
28 September 2005


                                                              September 28, 2005

                       BT TO ACQUIRE INFONET DEUTSCHLAND


BT announced today it has signed a definitive agreement to acquire Infonet
Network Services Deutschland GmbH (Infonet Deutschland). This follows BT's
acquisition of California-based Infonet Services Corporation, one of the world's
leading providers of international managed voice and data network services, in
February, 2005. BT currently owns 18% of Infonet Deutschland and will acquire
the remaining 82% from T-Systems, a subsidiary of Deutsche Telekom AG.

Infonet Deutschland provides more than 200 major corporate and public sector
organisations with integrated network solutions such as IP-based Virtual Private
Networks (VPN), Internet connectivity and Remote Access Services and employs 61
staff.

Jan Geldmacher, CEO of BT Germany, said: "This acquisition is a perfect fit as
we are further broadening our footprint in the German market. Infonet is known
for its strength in product quality and customer service and this transaction
will complement BT's strengths in the market for networked IT services."

Micheline Wens, General Manager of Infonet Deutschland, said: "We are proud to
join BT. This is great news for our customers, who will continue to receive the
same high-quality service that they are accustomed to. By combining our
strengths with BT's capabilities, we'll be able to provide our customers with an
even more complete portfolio of innovative services."

Infonet's management team, led by Micheline Wens, will remain in place to manage
the business, maintain continuity for customers and assist in the integration of
the two customer bases and product sets. Wens will be member of the Country
Executive Team of BT Germany. Completion of the transaction, which is
conditional upon regulatory approvals, is expected within two months. For the
period to 31 December 2004 the gross assets of the company had a value of 
€ 19.2m.

Notes to Editors

About BT
BT is one of the world's leading providers of communications solutions serving
customers in Europe, the Americas and Asia Pacific. Its principal activities
include networked IT services, local, national and international
telecommunications services, and higher-value broadband and internet products
and services.

BT consists principally of three lines of business:
• BT Retail, providing a comprehensive range of communications and related
services to more than 20m UK consumers and businesses.
• BT Wholesale, providing network services and solutions within the UK to more
than 600 fixed and mobile operators and service providers including the
provision of broadband and private circuits.
• BT Global Services, providing networked IT services to meet the needs of
multi-site organizations globally. BT Global Services operates in more than 130
countries and also offers international carrier services.

In the year ended 31 March 2005, BT Group's turnover was £18,623 million with
profit before goodwill amortization, exceptional items and taxation of £2,085
million.

BT Group plc is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt

About Infonet Deutschland

Infonet Network Services Deutschland GmbH was founded in 1988 in Frankfurt. Its
60 employees support over 400 multinational and national customers, and offer
them the technical and organisational infrastructure for global communication
services. T-Systems is with 82 % majority shareholder of the GmbH. British
Telecommunications plc, London, owns the remaining shares. Further information
available under: www.infonet.de




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            The company news service from the London Stock Exchange