BT Property divestment

British Telecommunications PLC
4 January 2001



BT NEGOTIATES PROPERTY DIVESTMENT



BT today announced that it is in negotiations to realise the value of its UK
property portfolio in what would be the biggest property transaction of its
kind seen in the UK to date.

Divestment of the property estate will enable BT to take more flexible
approaches to its office arrangements and building requirements.  The estate
comprises 7,500 properties, with a total floor space of six million square
metres. Seventy per cent of these are operational buildings for which BT will
retain the freehold and exclusive control.

This transaction will make a significant contribution to reducing BT's debt
with cash receipt expected during 2001.

Geoffrey Almeida, chief executive of BT Business Services, said: 'This
approach realises the value of these assets and increases shareholder value by
enabling BT to focus on its core business rather than acting as owners and
managers of an extensive property estate.

'This action is part of BT's already announced strategic review focused on
increasing shareholder value via operational and financial flexibility and
management focus.'

ENDS




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 BT Group news releases can be accessed at our website: http://www.bt.com/
mediacentre

Notes to editors:

BT Business Services was created on October 1, 2000 to manage the delivery of
infrastructure services to the Group achieving economies of scale and freeing
up BT's businesses to focus on their core activities without distraction.

BT Business Services covers not only property services but also IT,
procurement, logistics and supply chain, fleet management and resourcing
services.

BT Property Services manages the BT estate, together with all aspects of
facilities management.