BT position on Vivendi

British Telecommunications PLC
14 November 2000



NR0091                                                              


BT sets out position following ICC ruling on Vivendi dispute

Following the ICC Tribunal's ruling in relation to the dispute between BT and
Vivendi, BT did not comment on either the case or the Arbitral Tribunal's
findings.  By not commenting, BT was complying with the confidentiality
clauses imposed by the ICC Tribunal.

However, following Vivendi's unauthorised distribution of a press release
(November 10) outlining its version of the findings, the ICC Tribunal agreed
that BT should comment on the findings and clarify a number of issues, in
particular, significant findings which Vivendi omitted.

Although the Arbitral Tribunal decided not to prohibit the distribution of the
Vizzavi portal in French territory, the Tribunal took a number of decisions in
favour of BT:



*        The acquisition of 50 per cent of Mannesmann's shares in Cegetel by
Vivendi was contrary to the Shareholders' Agreement concluded by the various
shareholders of Cegetel. Vivendi is immediately ordered not to implement such
an acquisition nor to make any alternative arrangements to the same effect.
This order is also applicable to Mannesmann



*        The commercial arrangements, including the transfer of essential
assets of SFR, and consequently Cegetel, to Vizzavi, (the 'Operator Agreement
') were concluded in violation of BT's fundamental rights



*        In authorising its representative to vote at the SFR meeting on June
16, in which the Operator Agreement was approved, Vivendi seriously breached
the Shareholders' Agreement entered into by the partners of Cegetel



*        The Tribunal has determined that: '...the consequences of the breach
of the Shareholders' Agreement...as well as the consequences of the subsequent
implementation of the Operator Agreement dated June 19 2000, will be examined
in a second stage of the Arbitral proceedings.'





     These points mean that BT is allowed to claim substantial damages not
only for the breaches committed by Vivendi and the other respondents, but also
for any assets taken out of Cegetel for the benefit of Vivendi in violation of
the Shareholders'Agreement.

     Throughout this process BT has acted in the best interest of Cegetel and
the company remains commited to the success of the business and its future
prosperity.



                                    -ends-



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