BT acquires Scoot.com

BT Group PLC
27 June 2002


June 27, 2002

                     BT ACQUIRES THE ASSETS AND BUSINESS OF

                                 SCOOT.COM PLC

BT Group plc ("BT") today announced that it has entered into an agreement to
acquire the assets and business of Scoot.com plc ("Scoot"), the business finder
directory service. The consideration will comprise cash of £5 million and the
assumption of deferred income balances and certain lease liabilities totalling
approximately £3 million. The transaction, which will be unanimously recommended
by the board of Scoot, is conditional only upon the approval of Scoot's
shareholders. BT has received undertakings to vote in favour of the transaction
from shareholders representing 26.3 per cent of the issued share capital of
Scoot.

BT intends to integrate Scoot's assets into BT Retail's Operator & Directory
Services business, strengthening BT's position as Europe's leading directory
enquiries provider.

The forthcoming deregulation of directory enquiry services in the UK will allow
BT to offer a much fuller range of services to its customers, as the boundaries
between directory enquiries and the classified listing markets are removed.

Pierre Danon, CEO of BT Retail, commented "The acquisition of the Scoot business
is an exciting development for BT Retail. Scoot has been very successful in
developing a comprehensive classified listings database and in establishing a
highly efficient classified search engine. The Scoot brand is well recognised
and highly regarded. We will be making a wider strategy announcement giving
further details of BT Retail's directory enquiries strategy in due course." The
board of Scoot intends to despatch a circular shortly, in respect of the
transaction, to Scoot's shareholders. It is expected that the transaction will
complete after the EGM of Scoot shareholders to approve the transaction.

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Notes for Editors

BT is one of the world's leading providers of telecommunications services and
one of the largest private sector companies in Europe. Its principal activities
include local, long distance and international telecommunications services,
Internet and broadband services and IT solutions.

Scoot.com plc provides a range of directory and transaction services through a
number of communication channels, including the telephone and internet, to
subscribers and users in the United Kingdom.

Enquiries 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 [phone]. All
news releases can be accessed at our web site:

                           www.btplc.com/mediacentre



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