Acquisition

BT Group PLC
05 December 2007



DC07-586                                                        December 5, 2007

    PROPOSED ACQUISITION OF FRONTLINE TECHNOLOGIES CORPORATION LIMITED BY BT


BT and Frontline Technologies Corporation Limited (Frontline), one of the
leading providers of end-to-end information technology (IT) services within the
Asia Pacific region, announced today that they have entered into an agreement
for BT to acquire the entire issued share capital of Frontline (the
"Acquisition") for approximately S$202 million. Frontline provides IT
consulting, infrastructure services, systems integration and IT outsourcing to
local, regional and multinational customers. The company, which is listed on the
main board of the Singapore Exchange, has operations in China, Hong Kong, India,
Indonesia, Malaysia, Singapore, the Philippines, Taiwan and Thailand.

The Acquisition will be effected by way of a scheme of arrangement under the
Singapore Companies Act and in accordance with the Singapore Code on Take-overs
and Mergers (the "Share Scheme"). On completion of the Share Scheme, all issued
Frontline shares will be transferred to BT for cash consideration of S$0.245 for
each Frontline share (the "Scheme Price"). The Scheme Price represents a 33.9%
premium to 1-month average share price(1). At the close of business on the day
preceding the date Frontline's shares were suspended from trading, Frontline's
market capitalisation was S$157 million. The completion of the Share Scheme is
subject to the fulfilment of certain conditions precedent, including the
approval of Frontline shareholders and the confirmation of the High Court of
Singapore.

This news release should be read in conjunction with the full text of the joint
announcement released by BT and Frontline dated 5 December 2007. A copy of this
announcement is available on www.sgx.com.

The Acquisition complements BT's existing networked IT services capabilities
within the Asia Pacific region. Frontline has an excellent reputation for the
delivery of complex solutions and network management services to corporate
customers with a strong presence in the financial services, transportation,
manufacturing, telecommunications, education, healthcare and public sectors.

Francois Barrault, CEO BT Global Services, said: ". This Acquisition will create
one of the leading providers of networked IT solutions that will be able to
offer a broader portfolio of solutions to local, regional and global customers.
Frontline will bring to BT major new contracts in Asia and BT will be in a
position to offer Frontline customers the full suite of BT products and
services. Through this acquisition we reinforce our ability to provide high
quality services to our customers wherever they do business. Frontline brings to
BT approximately 5,000(2) highly skilled and professional people whose
reputation for delivering complex solutions and network management services fits
perfectly with BT's strategy. We believe our combined reach and skills will
create an unbeatable team in Asia Pacific as we seek to respond better to our
customers' challenges and opportunities"

Frontline's Executive Chairman and Founder, Steve Ting said "Since founding
Frontline in 1993, we have strengthened our footprint throughout Asia Pacific
and we are extremely proud of the company that we have created. Becoming part of
BT can only accelerate our future growth and help to create a unique portfolio
offering that will benefit our existing and future customers, firmly
establishing us as one of the leaders in our space. This proposed transaction is
great news for our customers, shareholders and employees."

The three Executive Directors of Frontline, Mr Steve Ting Tuan Toon, Mr Lim Chin
Hu and Ms Shirley Wong Swee Ping, who are a key part of Frontline's management,
will continue in their respective roles upon closing of this deal. Certain
shareholders, holding approximately 41% of the issued share capital of
Frontline, including the key executives named above, have given undertakings to
vote in favour of the Share Scheme.

Separately, we note that Frontline has today announced that it has entered into
a conditional agreement to purchase 2,025,810 shares in Accel Frontline Limited
amounting to approximately 9 per cent. of Accel Frontline Limited from Accel.
Accel Frontline Limited is listed on the Bombay Stock Exchange and National
Stock Exchange of India. We note that the completion of this share purchase is
conditional on the completion of the Share Scheme and that Frontline currently
holds 9,452,678 shares in Accel Frontline Limited, amounting to approximately
42% of Accel Frontline Limited's current issued share capital. A copy of
Frontline's announcement relating to this transaction is available at
www.sgx.com.

Macquarie Securities (Asia) Pte Ltd is acting as the financial adviser to BT.


About BT

BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services; local, national and international telecommunications services;
higher-value broadband and internet products and services and converged fixed/
mobile products and services. BT consists principally of four lines of business:
BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2007, BT Group plc's revenue was £20,223 million with
profit before taxation of £2,484 million.

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

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


About Frontline

Frontline Technologies is a leading provider of end-to-end IT services.
Frontline offers IT consulting, IT infrastructure, IT security solutions,
enterprise application solutions, system integration as well as outsourcing to
help companies harness IT so as to drive operational cost efficiency as well as
business growth.

Established in 1993 and headquartered in Singapore, Frontline has more than
5,000 professionals in nine key markets in Asia - China, Hong Kong, India,
Indonesia, Malaysia, Singapore, Philippines, Taiwan and Thailand - to meet the
specific needs of corporate organisations across a continuum of industries.
Frontline is listed on the Main board of the Singapore Exchange since March 2001
and has been ranked in the top 15% of the Corporate Transparency Index (CTI) in
Singapore.

For more information visit www.frontline.com.sg



The directors of BT Singapore Pte Ltd (including those who may have delegated
detailed supervision of the preparation of this News Release) have taken all
reasonable care to ensure that the facts stated and opinions expressed in this
News Release are fair and accurate and no material facts have been omitted from
this News Release, and they jointly and severally accept responsibility
accordingly.


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(1) Based on the 1 calendar month volume weighted average price

(2) Includes Frontline's subsidiaries and associate companies



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