Full ownership of Viag

British Telecommunications PLC
29 December 2000


December 29, 2000


BT TO TAKE FULL OWNERSHIP OF VIAG INTERKOM

BT today confirmed that it would be buying from Norwegian telecommunications
company Telenor its 10 per cent stake in Viag Interkom, the German fixed and
mobile operator.

     BT will buy the Telenor stake for Euro 1.61 billion, following Telenor's
decision today to exercise a put option agreed earlier this year. The option
followed a deal by BT enabling it to take control of Viag Interkom through the
purchase from E.ON of its 45 per cent shareholding in the German operator.
This agreement on purchase of E.ON's stake, announced in August, is expected
to close in the first half of 2001.

     Today's confirmation of Telenor's decision to sell the remaining 10 per
cent stake will give BT full ownership of Viag Interkom.

     A BT spokesman said: ' Viag Interkom offers a full range of high quality
communications services across the fixed and mobile markets and is
strongly-positioned for substantial developments in Europe's largest and one
of its fastest-growing communications markets.

' We are delighted we will be strengthening our position in a country which is
a central part of BT's market focus within western Europe. The cost of the
remaining stake held by Telenor was fixed earlier this year and is taken into
account in our predicted debt levels for the end of the current financial
year.'

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