BT & AT&T agree Concert end

British Telecommunications PLC
16 October 2001


NR 0166 October 16, 2001

                     BT AND AT&T AGREE TO UNWIND CONCERT

BT and AT&T today announced that they have reached binding agreements to
unwind Concert, their international joint venture, and return the respective
assets to the parent companies.

A range of commercial agreements has been struck to ensure a smooth transition
for Concert's customers.

Since Concert was first announced in 1998, the market has witnessed a period
of unprecedented change. The venture no longer fits today's market conditions,
and the companies agreed that the best way to serve the interests of
customers, shareholders and employees was to agree on an orderly unwind.

AT&T and BT will work together to ensure a smooth transition for Concert
customers. The deal is expected to close in the first half of 2002. Commercial
agreements between the two companies will ensure the continuity and quality of
existing services for three years.

Both companies will have the capability to provide new and existing customers
with global services based on Concert's products. All existing contracts and
service level agreements will be honoured.

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 Inquiries 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: http://www.groupbt.com/
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           For AT&T inquiries contact Phil Coathup on 01527 493549

 For Concert inquiries contact Niall Hickey on 020 7650 8149 or 07715 771451