BT BOND ISSUE

British Telecommunications PLC
18 January 2001




                                 January 18, 2001

                            BT SUCCESSFULLY COMPLETES

               E9.7 BILLION EQUIVALENT MULTI-TRANCHE BOND ISSUE



BT today issued a total of Euro 9.7 billion equivalent in six tranches of Euro
and Sterling-denominated bonds with the following terms:

Size                  Notes                        Maturity

Euro 1bn              Floating rate                February 2003
Euro 1.75bn           Fixed rate                   February 2004
Euro 3bn              Fixed rate                   February 2006
Euro 2.25bn           Fixed rate                   February 2011


    The Sterling element will total £1.1bn with the maturities split
    between 2006 and 2016.

    Andy Longden, BT Group Treasurer said: 'This has been an astonishingly
    successful offering demonstrating a huge appetite by investors for BT bonds.
    The deal was widely distributed with approximately 1,000 orders from        
    European investors and represents a big thumbs-up for BT's strategy.'

    The proceeds from the offering will be used to reduce short term borrowings.
    Pricing of the Euro element will be finalised on Friday 19 January.

    The issue was lead-managed by Barclays Capital, Deutsche Bank and HSBC,
    following an extensive roadshow in Europe which covered 8 European          
    countries.  Over the past 2 months BT has raised approximately Euro 20bn    
    equivalent from the debt capital markets.

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


                                    -ends-


Copies of the prospectus are available from BT:

John Brougham
BT Centre
81 Newgate Street
London EC1A 7AJ
Telephone:        + 44 20 7356 4909
Facsimile:        + 44 20 7356 5270

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 BT group news releases can be accessed at our web site:



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