BT affirms strategy

BT Group PLC
16 June 2003

June 16, 2003

                            BT AFFIRMS ITS STRATEGY


BT is today holding a conference for city analysts and investors aimed at
providing greater detail about the strategy outlined by the company last year
and what it will deliver for customers and shareholders.

BT will continue to defend vigorously its core revenues while delivering
major improvements in efficiency. Organic growth will come from new wave areas
with BT building on its success in broadband, ICT and global solutions and
moving into areas such as mobility. In addition our 21st Century Network
transformation programme will deliver significant benefits for customers and
reduce long-term costs for BT.

The event will be webcast and starts at 9:00am with an overview presented by
chief executive Ben Verwaayen.

Group finance director Ian Livingston, said: "Today is all about providing a
greater depth of understanding of the activities that will contribute to future
revenues and profits. We will provide an insight into how BT will continue with
its strategy of defending the core and growing new wave revenues, while
maintaining strong financial discipline."

There will be no change to BT Group targets although the financial information
disclosed will give some additional granularity to existing targets for 2004/05
and provide additional guidance on areas such as network modernisation.


  • more than £1billion of incremental revenue from ICT products and services
    between 2001/02 and 2004/05.

  • around £300m of annual revenue from mobility by 2005

  • new cash cost savings, reaching £1billion p.a. by 2008/09 from investment
    in 21st Century Network.

  • Global Services becoming cash flow positive during 2004.



BT also intends to build upon its 1 million broadband customers, targeting 5
million customers by 2006, equating to around £1billion of profitable revenue
annually.

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


Notes to editors:

                                                      Audio Call                             Rebroadcast

             Webcast/slides                             Number                                 Number

                                                       Password                              PIN Number

                                                  0800 626 606 (UK)                     For Intro & Mobility
    http://www.btplc.com.presentation
                                              [phone] (Non UK)                 [phone]

                                              Password "21st Century BT"                       640704#

                                                                                     For Network Transformation

                                                                                        [phone]

                                                                                               640723#


                                                                                            For Broadband

                                                                                        [phone]

                                                                                               644979#

                                                                                 For Global Services & Panel Session

                                                                                        [phone]

                                                                                               644581#



Forward-looking statements - caution advised

Certain statements in this news release are forward-looking and are made in
reliance on the safe harbour provisions of the US Private Securities Litigation
Reform Act of 1995. These statements include, without limitation, those
concerning: expectations regarding customer growth, investment plans, strategy,
and the benefits of new initiatives; the possible or assumed future results of
operations of BT and/or its lines of business; expectations regarding product
volume, revenue targets and/or growth, capital expenditure, network
infrastructure and savings, customer satisfaction, free cash-flow, market share,
cost reductions and cash savings, productivity improvements, and profitability.

Although BT Group believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurance that these
expectations will prove to have been correct. Because these statements involve
risks and uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements.

Factors that could cause differences between actual results and those implied by
the forward-looking statements include, but are not limited to: material adverse
changes in economic conditions in the markets served by BT and its lines of
business; future regulatory actions and conditions in BT's operating areas,
including competition from others in the UK and other international
communications markets; selection by BT and its lines of business of the
appropriate trading and marketing models for its products and services;
fluctuations in foreign currency exchange rates and interest rates;
technological innovations, including the cost of developing new products and the
need to increase expenditures for improving the quality of service; prolonged
adverse weather conditions resulting in a material increase in overtime, staff
or other costs; developments in the convergence of technologies; the anticipated
benefits and advantages of new technologies, products and services, including
broadband and other new wave initiatives, not being realised; the timing of
entry and profitability of BT and its lines of business in certain communication
markets; significant changes in market shares for BT and its principal products
and services; to the extent that BT chooses to sell assets or minority interests
in its subsidiaries, prevailing market levels for such sales; general financial
market conditions affecting BT's performance; and the reintegration of Concert.
BT Group undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.





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                               www.btplc.com/mediacentre



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