Acquisition OF TNS

BT Group PLC
31 October 2005


DC05-707                                                        October 31, 2005

BT GROWS PRESENCE IN LAN AND CONVERGENT SOLUTIONS MARKET WITH ACQUISITION OF TNS

BT today announced that it has acquired Total Network Solutions Limited (TNS) as
part of its strategy to enhance its capabilities in the UK's Local Area
Networking (LAN) and convergent solutions markets. The acquisition enables BT,
Cisco's Global Managed Service Provider of the Year for 2004, to build on its
position as the leading provider of Networked IT Services.

TNS has been providing innovative business solutions to UK corporate, public
sector and service provider customers for over 14 years. Based in Oswestry in
Shropshire, the company employs 92 people and had revenues for the year ending
31 December 2004 of £13.9 million. The company had gross assets as at 31
December 2004 of £9.1 million.

"Today's announcement marks the next step in our strategy to grow our capability
and market coverage in key convergence technologies such as LAN, IP telephony,
wireless networking and security, and extends BT's leadership position in the
LAN services market," said Tom Craig, President, IP Networking, BT Global
Services. "TNS further enhances the range of solutions that BT can provide to
its customers, enabling them to thrive in the digital networked economy."
Together with BT's acquisition of SkyNet Systems Limited in May 2005, TNS
increases BT's exposure to the rapidly growing business market for integrated
IP-based communications solutions. BT is well positioned to provide business
customers with all their managed support and core network integration service
needs.

"The coupling of TNS with BT's existing IP networking portfolio, distribution
channels and recognised brand creates tremendous opportunities for our clients,
employees and partners," said Mike Harris, founder and Managing Director of TNS.
"TNS is a client-focussed growth engine that will help drive BT's success in the
digital networked economy age."
                                     -Ends-

Notes to Editors

For further information
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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 20 million 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.

From January 2006, there will be a fourth business called openreach. This
business will be responsible for the nationwide local BT network which covers
the "first mile" of wires that connects homes and businesses across the UK to
their service providers. openreach will provide communications providers with
services and products associated with that network.

In the year ended 31 March 2005, BT Group's turnover was £18,623 million with
profit before taxation of £2,354 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.




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