AGM Statement

BT Group PLC
19 July 2007


July 19, 2007


                          BT - FUTURE GROWTH BASED ON
                               SECURE FOUNDATIONS


BT's future as a company is based on the solid foundations of financial
stability, regulatory certainty and global capability. That was the key message
delivered today by BT chairman Sir Christopher Bland when addressing the
company's shareholders at the Annual General Meeting at the Sage in Gateshead.
The speech was Sir Christopher's final address to BT's shareholders before
retiring in September, to be succeeded as chairman by Sir Michael Rake,
currently chairman of KPMG International.

Describing last year's performance as "very strong", Sir Christopher noted some
financial highlights: "Our revenues grew by 4% to over £20.2 billion. Our profit
grew by 15% to £2,495 million. And earnings per share were up 16% to 22.7p. I am
delighted to confirm that we have increased the full year dividend by 27 per
cent to 15.1 pence." Sir Christopher also confirmed that BT has achieved the
ratio of dividends to earnings of two-thirds "one year earlier than planned. In
future we expect to increase the dividend, taking into account our earnings
growth, cash generation and ongoing investment needs."

Referring to BT's strategy, Sir Christopher emphasised that BT would maintain "a
continual focus on customers. We succeed by understanding what they want today ,
and by anticipating what they will want tomorrow".

Looking back on his six year tenure at the company, Sir Christopher noted that
when he joined: " We were suffering from the ailments common to many European
telecoms companies. We needed to raise cash, sell non-core businesses and
reshape the business." These strategic priorities "were addressed within 12
months, making BT the first telco in Europe to tackle these issues head-on."

Summing up, Sir Christopher noted: "We have established secure foundations on
which future growth can now be built. We see a marketplace which is highly
competitive but full of exciting opportunities. We have come a long way, but
there is much more to be achieved. There is a momentum in BT which continues to
build, and management is clearly focused on the opportunities which lie ahead.

Sir Christopher concluded his speech by thanking BT's shareholders and employees
for their loyalty and support.

For further information

Inquiries about this news release should be made to the BT Group Newsroom on its
24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All
news releases can be accessed at our web site: http://www.btplc.com/News


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


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            The company news service from the London Stock Exchange