BT Acquires Cara Group

BT Group PLC
03 November 2005


DC05-715                                                      November 3rd, 2005


    BT IRELAND ACQUIRES THE CARA GROUP, A MARKET-LEADING IT SERVICES COMPANY

Dublin: Thursday 3rd November 2005: BT Ireland today announced the acquisition
of the CARA Group, which will create one of the largest networked IT services
companies in Ireland.

This will accelerate BT to the forefront of the sector, in line with its
strategy to become the leading networked IT services company across the island
of Ireland.

Danny McLaughlin, Chief Executive Officer, BT Ireland, said: "Bringing this
excellent company into the family creates a truly unique market proposition
across the island of Ireland, marrying BT's extensive network and product
portfolio with the rich IT services capability of CARA.  This acquisition fits
very well with our strategy of being the leading supplier of networked IT
services in Ireland."

The CARA Group has been providing innovative ICT solutions to Irish businesses
and public sector customers for over 30 years.  Head-quartered in Dublin, the
company employs 134 people in Dublin, Cork and Belfast.  CARA had revenues for
the year ended 2004 of €38 million and the company had gross assets as at 31
December 2004 of €10 million.

David Little, Managing Director of CARA, said: "This is a great opportunity for
CARA, and I look forward to delivering with BT the value-add that this deal will
bring to our respective customers. It is increasingly challenging for an
indigenous company to compete in what is rapidly becoming a global marketplace.
This acquisition gives us access to the expertise, resources and

solutions of a great company which combined with our flexible and innovative
approach will deliver significant benefits to the market."


Ends


For media enquiries, please contact:

Una McGirr, Director of Corporate Affairs, BT Ireland 086 6070858 or Catherine
Logan, Fleishman-Hillard PR on 086 8114785


NOTES TO EDITORS

About BT Ireland:

BT Ireland is a wholly owned subsidiary of BT Group plc, and a fully integrated
division of BT Global Services. With over 900 employees, the company is
headquartered in Dublin with offices in Cork, Limerick, Galway and Waterford.

BT Ireland helps organisations large and small, corporate and public, Irish and
global to thrive through the provision of networked IT services.

BT Ireland also operates in the residential and internet portal markets,
offering a full suite of innovative services to consumers, from home phone and
internet access, to WiFi and high-speed broadband.

For more information please visit www.btireland.ie


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 networked IT 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 more than 20 million 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 networked IT 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.

From January 2006, there will be a fourth business called openreach.  This
business will be responsible for the nationwide local BT network which covers
the "first mile" of wires that connects homes and businesses across the UK to
their service providers.  openreach will provide communications providers with
services and products associated with that network.

In the year ended 31 March 2005, BT Group's turnover was £18,623 million with
profit before taxation of £2,354 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 The CARA Group

The CARA Group is a leading Information and Communications Technology (ICT)
infrastructure solutions, services and products provider. Cara employs 134
people throughout Ireland and Northern Ireland.

Cara's capabilities embrace all areas of an organisation's technology
requirements; including the design, implementation, management and support of -
secure Local, Wide Area and Wireless Networking; secure Remote Access and
Internet solutions; IP Telephony solutions, Security solutions; Enterprise
Systems; Information Lifecycle Management solutions including SAN, NAS, virtual
infrastructure and Data Management; Professional and Software Services including
Microsoft, Novell and Citrix solutions; Rollout; and Managed Customer and
Support Services both on site and remote

For more information please visit www.cara.ie



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