Disposal

British Telecommunications PLC
12 July 2001



                                                               July 12, 2001

   BT ANNOUNCES FINAL CLOSURE OF SALE OF ITS INTERESTS IN J-PHONE OPERATING
                                  COMPANIES


BT today announced the closure of the sale of its interests in Japan's J-Phone
regional operating companies to Vodafone.

The closing for Euro1.054 billion took place today and follows the exercise of
the option that BT held over a 4.9 per cent direct stake in each of the three
J-Phone regional operating companies.

     This completes the sale of BT's interests in Japan Telecom and the
J-Phone group following the first closing for £3.07 billion on June 1, 2001.
The sale represents a return of more than three times BT's original
investment. The proceeds are being used to reduce BT's debt.

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