Acquisition

BT Group PLC
25 February 2005



February 25, 2005

                      BT COMPLETES ACQUISITION OF INFONET

BT today announced the completion of the acquisition of Infonet, one of the
world's leading providers of global managed voice and data network services for
corporate customers. All conditions to the transaction have now been met,
following formal approval of Infonet's stockholders at a general meeting held on
February 23.

BT and Infonet announced on 8 November 2004 an agreement for BT to acquire
Infonet for $2.06 per share, valuing Infonet at $965m (£510m) inclusive of
Infonet's cash balance of $390m (£205m) (1), or $575m (£305m) net of the cash
balance.

Infonet, which will be renamed BT Infonet, becomes part of BT Global Services.
BT is confident it will achieve the synergy benefits initially announced, of
$150m per annum by the third year after completion, in a way which will ensure
service quality is maintained. BT Infonet's experienced management team, led by
its chief executive, Jose A. Collazo, 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.

Andy Green, CEO BT Global Services, said: "I am very proud to welcome a great
team of highly skilled professionals into the BT family. The combination of BT
Global Services and Infonet will create a clear leader in the networked IT
services market, and will enhance our position as the supplier of choice for
multi-site organisations around the world. With the help of our new BT Infonet
colleagues, BT Global Services will continue our drive to help our customers
address the challenges and opportunities of the digital networked economy."

Jose A. Collazo, chief executive of BT Infonet, said: "We are about to begin a
new era as part of BT, bringing significant opportunities for our customers and
employees. BT Infonet brings market-leading skills in network management
services, a brand identified with customer service excellence, a suite of
services tailored to the needs of a continually globalizing world, global
presence and reach around the world, and a stable entrepreneurial organization.
It also brings a customer base of leading multinational organisations such as
Volkswagen, Nestle, Bayer, IBM, DHL and Solvay. As a part of BT Global Services,
we will remain focused on the same goal: to be the partner of choice for
multinationals when it comes to launching and servicing mission critical
applications."

Infonet's stock has today ceased trading on the New York Stock Exchange.
EquiServe has been retained by BT to serve as paying agent. As soon as
practicable, the paying agent will mail a letter of transmittal to each person
who was a holder of stock at the effective time of the merger. The letter of
transmittal will contain instructions for use in surrendering certificates
formerly representing shares of Infonet common stock in exchange for $2.06 per
share in cash.




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 IT and networking 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 over 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 IT and networking 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


About BT Infonet
BT Infonet is a leading provider of managed network communications services for
multinational entities, fully owned by BT Group and part of BT Global Services.
BT Infonet offers integrated solutions optimizing the complex relationship
between enterprise applications and the global network. BT Infonet provides
local service support in over 70 countries and territories and its network is
accessible from more than 180 countries





Notice

This release may include statements that constitute "forward-looking
statements", including with regard to the Infonet acquisition. These statements
are made pursuant to the safe harbour provisions of the private Securities
Litigation Reform Act of 1995. Because such statements inherently involve risks
and uncertainties, actual future results may differ materially from those
expressed or implied by such forward-looking statements. Neither BT nor Infonet
undertakes any obligation to up-date these statements for revisions or changes
after the date of this release.

(1) As at 31 March, 2004



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