BT to increase I.NET holding

BT Group PLC
08 February 2007


DC07-62                                                         February 8, 2007


 BT INCREASES HOLDING IN I.NET S.p.A. AND ANNOUNCES PUBLIC OFFER FOR REMAINING
                                     SHARES


BT today announced that it has increased its controlling stake in I.NET S.p.A.
("I.NET"), the leading Italian provider of hosting and managed security
services, to 64.4% by agreeing to purchase Etnoteam's 13.6% stake. BT intends to
launch a public offer shortly for the remaining shares not owned by either BT or
Etnoteam following approval from Consob, the Italian stock exchange regulator.

I.NET is an acknowledged leader in security and business continuity solutions,
guaranteeing "Business Continuity" by planning and managing service-enhanced ICT
infrastructures for its corporate customers. Many of Italy's best known
companies buy I.NET's services, including De Agostini, Corriere dello Sport and
Ferretti.

Andy Green, CEO BT Global Services, said: 'This represents an important step in
the continued development of BT Global Services' Italian capabilities. I.NET's
evolution in recent years from a network access and hosting company to a
fully-integrated managed security and network applications provider places the
company firmly within the BT Global Services' strategy for the Italian market.
I.NET's market-leading skills will significantly enhance our existing Italian
services portfolio.'

Businesses across all sectors are rapidly recognising the strategic importance
of their communications infrastructure. As a result, companies are becoming more
dependent on communications providers to develop and deliver business continuity
and disaster recovery solutions. I.NET's newly completed "Business Factory" data
centre offers customers near-military grade security and complete resilience to
protect their communications assets.

As at the last reported balance sheet date on September 30, 2006, the gross
assets of I.NET were €166.3m.

-Ends-

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 + 44 20 7356 5369.

About BT

BT is one of the world's leading providers of communications solutions and
services operating in 170 countries. Its principal activities include networked
IT services, local, national and international telecommunications services, and
higher-value broadband and internet products and services. BT consists
principally of four lines of business: BT Global Services, Openreach, BT Retail
and BT Wholesale.

In the year ended 31 March 2006, BT Group plc's revenue was £19,514 million with
profit before taxation of £2,040 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group. BT Group plc is
listed on stock exchanges in London and New York.


For more information, visit www.bt.com/aboutbt


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