Acquisition of SkyNet

BT Group PLC
04 May 2005


                                                                     May 4, 2005

         BT ACQUIRES SKYNET TO DRIVE GROWTH IN UK LAN SOLUTIONS MARKET

          Acquisition grows BT's presence in UK data networking market

BT today announced that it has acquired SkyNet Systems Limited (SkyNet) as part
of its strategy to enhance its capabilities in the UK's Local Area Networking
(LAN) market.

Based near Oxford, SkyNet is an independent LAN solutions provider specialising
in Internet Protocol (IP) communications, wireless networks, content delivery
and network security focused on education, health, local government and media
markets. The company employs 59 people and for the year ended 31 March 2005 had
a turnover of £21.7m generating an operating profit of £1.5m. As at 31 March
2005 the company had net assets of £2.2m.

"Over the past few years, BT has enjoyed fantastic success delivering solutions
across a range of organisations, a fact recently confirmed by Cisco recognising
BT as its EMEA Service Provider Partner of the Year," said Tom Craig, Director,
BT Convergent Solutions. "Today's announcement is part of our strategy to extend
our capability and market coverage in key technologies such as IP telephony,
wireless networking and security, and offer the benefits of the digital
networked economy to every company in the UK. Our new subsidiary, BTSkyNet, will
further enhance the range of IP communications solutions that we can offer to
all of our customers and further raises BT's profile as a LAN solutions
provider."

"This is a very exciting time for everyone at SkyNet. We have just been awarded
Cisco's UK Solutions Partner of the Year and our capabilities in IP telephony,
wireless networking and security will be of enormous value to BT. We look
forward to working with BT's existing sales channels to grow our market coverage
and leverage our mutual strengths," said Dave Carrington, founder and managing
director of SkyNet.




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 organisations globally. BT Global Services operates in more than
    130 countries and also offers international carrier services.

In the year ended 31 March 2004, BT Group's turnover was £18,519 million with
profit before goodwill amortisation, exceptional items and taxation of £2,013
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


BT Contact
Patrick Murphy Telephone + 44 (0)1277 326010
[e-mail]




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