Appointment

British Telecommunications PLC
3 September 2001



September 3, 2001


                  Not for distribution in the USA or Canada

                 RUDOLF GROGER NAMED AS CEO OF VIAG INTERKOM


Rudolf Groger has been appointed as Chief Executive Officer of VIAG Interkom,
mmO2 plc's German business, it was announced today. He will take over from
Keith Cornell, mmO2 plc's European President who has been acting chief
executive officer since May 2001, and will be responsible for continuing the
implementation of VIAG Interkom's strategy in Germany.

Rudolf will take up his responsibilities with effect from Monday October 1,
2001. Keith will return to his position as mmO2 plc's European President.

Rudolf is currently Managing Director of T-Systems GmbH, Europe's
second-largest systems house, and one of the four core activities of Deutsche
Telekom. Rudolf is also member of the board of Debis Systemhaus GmbH, the
joint venture between Deutsche Telekom and DaimlerChrysler.

Peter Erskine, Chief Executive Officer of mmO2 plc, said: 'We are delighted
that Rudolf is joining us. He has an impressive track record, having made a
major contribution in building up the systems and solutions group of Deutsche
Telekom, and has a thorough knowledge of the telecoms industry in Germany. We
are confident that he will play a pivotal role in the future of VIAG
Interkom.'

Rudolf has worked for Deutsche Telekom since 1999. Before heading up
T-Systems, Rudolf played a key role in the acquisition of Debis Systemhaus
GmbH and its integration into Deutsche Telekom. Previously he worked for
Siemens and was head of its German Information and Communication Product
operations.



Notes to Editors

VIAG Interkom


VIAG Interkom is a wholly-owned subsidiary of mmO2 plc. Since launching mobile
services in October 1998, VIAG Interkom has achieved an estimated market share
of approximately 7.2 per cent with over 3.4 million customers.

mmO2 plc

BT Wireless, the mobile business of BT, announced today that the new customer
brand for the business will be O2. The holding company name will be changed to
mmO2 plc effective immediately, and upon demerger from BT planned for later
this year the ordinary shares will be listed under this new name. O2 will be
the brand of the customer facing businesses of mmO2 plc.

mmO2 plc has wholly-owned operations in the UK (BT Cellnet), Germany (VIAG
Interkom), The Netherlands (Telfort), the Republic of Ireland (Esat Digifone)
and the Isle of Man (Manx Telecom). mmO2 plc also includes Genie, which is one
of Europe's leading mobile internet businesses. mmO2 plc owns third generation
licences to operate 3G mobile services in the UK, Germany and the Netherlands
- all territories where it has already launched GPRS services. We expect to
apply for a 3G licence in Ireland when the application process commences.

                            ---------------------



This press announcement, which has been prepared by and is the sole
responsibility of mmO2 plc, has been approved solely for the purposes of
section 57 of the Financial Services Act 1986 by Merrill Lynch International,
Morgan Stanley & Co. International Limited and Salomon Brothers International
Limited which are regulated in the UK by The Securities and Futures Authority
Limited.



Merrill Lynch International, Morgan Stanley & Co. International Limited and
Salomon Brothers International Limited are advising mmO2 plc and British
Telecommunications plc in relation to the proposed demerger and no-one else
and will not be responsible to anyone other than mmO2 plc and British
Telecommunications plc for providing the protections afforded to the customers
of Merrill Lynch International, Morgan Stanley & Co. International Limited and
Salomon Brothers International Limited in relation to the proposed demerger.

This announcement does not constitute, or form part of an offer, or
solicitation of an offer, to purchase or subscribe securities.



 Inquiries about this news release should be made to BT Group Newsroom on the
  24-hour number: 020 7356 5369. From outside the UK, dial [phone], or
Derek Bainbridge/Fiona Fong at Brunswick, 020 7404 5959, or the VIAG Interkom
                               press office on

                   00 49 89 244 21213 or 00 49 89 24421214.


  More information about mmO2 plc can be accessed at the website www.O2.com

        All BT group news releases can be accessed at the BT web site:

                        http://groupbt.com/mediacentre