Director Shareholding

British Telecommunications PLC
2 July 2001

BRITISH TELECOMMUNICATIONS plc

2 July 2001

NOTIFICATION OF DIRECTORS' INTERESTS IN THE ORDINARY SHARES OF BRITISH
TELECOMMUNICATIONS plc

Increase in technical interests in respect of:

Sir Peter Bonfield

Phillip Hampton

Sir Christopher Bland

As a result of the take up of the rights issue in respect of shares held in
trust for eligible employees under the BT Employee Share Ownership Scheme the
technical interest of each of the above-named directors in the ordinary shares
of 25p each of the Company has increased by 8100 shares.

Following this adjustment, each of the above directors now has a technical
interest, together with all employees of BT under section 13 of the Companies
Act 1985, in 97,336 shares held in the name of BT Employee Shares Trustees
Limited in respect of the BT Employee Share Ownership Scheme.

As a result of the take up of the rights issue in respect of shares held in
trust for eligible employees under the BT Equity Incentive Portfolio and
Deferred Bonus Plan, the technical interest of each of the above-named
directors in the ordinary shares of 25p each of the Company has increased by
2,770,894 shares.

Following this adjustment, each of the above directors now has a technical
interest under section 13 of the Companies Act 1985 in 21,913,590 shares held
by Ilford Trustees (Jersey) Limited.

The price paid for each share was £3.00 in accordance with the rights issue.

Date of event:     30th June 2001

Date directors became aware of transaction: 2 July 2001