Corporate Action - Update

British Telecommunications PLC
9 October 2001

SCHEME OF ARRANGEMENT - DEMERGER
SECURITY TITLE
*Ord Shs
MNEMONIC CODE           *BT.A
SEDOL CODE              *140-843
TERMS                   *For each existing Ordinary - 1 Ordinary Share of  
                         Share of GBP0.25 in British  GBP0.001 in mm02
                         Telecommunications           and
                                                      1 Ordinary Share of 
                                                      GBP1.15 in BT Group
PROVISIONAL EX DATE     *19-11-01                             
SCHEME RECORD DATE      *16-11-01
DEMERGER RECORD DATE    *19-11-01                             
NOTES *Update to the terms.