Bond Issue

British Telecommunications PLC
6 December 2000

British Telecommunications plc Completes Largest Ever US Dollar Corporate Bond
Issue

British Telecommunications plc successfully completed the largest ever US
dollar denominated corporate bond in history.  The company issued a total of
$10 billion in four tranches of SEC-registered Global bonds with the following
terms:

Size          Notes          Maturity           Coupon       Reoffer Price
$1.1 billion  Floating rate  15 December 2003   $L+104.5     100.000%
$3.1 billion  Fixed rate     15 December 2005   7.625%       99.839%
$3.0 billion  Fixed rate     15 December 2010   8.125%       99.837%
$2.8 billion  Fixed rate     15 December 2030   8.625%       99.340%

The deal was distributed to over 250 investors from the U.S., Europe and Asia.

The proceeds from the offering will be used for general corporate purposes.

Merrill Lynch & Co., Morgan Stanley Dean Witter and Salomon Smith Barney
arranged the sale.

British Telecommunications plc is one of the world's leading global providers
of communications services.  The company's main activities include the
provision of fixed line services, mobile telephony, internet services and
international directories services.

Copies of the prospectus are available from British Telecommunications Plc:

John Brougham
BT Centre
81 Newgate Street
London  EC1A 7AJ
Telephone: [phone]
Facsimile:[phone]