Further re Interim Results

British Telecommunications PLC
9 November 2000



Half Year Results and Interim Report

Chairman's Statement

The marked turnover growth in the half year reflects BT's success in
implementing its strategy, which is delivering rapid growth in Europe and
Japan. In the half year we finalised our purchase of Esat in Ireland, gained
full control of Telfort in Holland and reached an agreement which will allow
us to take control of Viag Interkom in Germany.

Total operating profit, before goodwill amortisation and exceptional items, in
the half year was £1,779 million compared with £1,768 million last year.
Earnings per share declined from 17.9 pence to 9.1 pence reflecting higher
interest and goodwill charges as a result of acquisition of businesses and the
payments for third generation mobile licences. As anticipated, our net debt
has risen to £18.7 billion.

The interim dividend of 8.7 pence per share has been maintained, reflecting
the company's overall performance and pending its restructuring.

                                       Sir Iain Vallance, 8 November 2000

_______________________________________________________________________________
Review

     Earnings per share for the half year were 9.1 pence based on a profit
before tax of £1,032 million. There remains intense competition in the UK and
elsewhere and these results are established after charging significantly
higher interest expense and goodwill amortisation.

     Total turnover, including BT's share of its ventures' turnover, grew by £
4,078 million. Around £2 billion arises from BT's investment in Japan Telecom
and our joint interest in the J-Phone mobile companies in Japan. A further £
550 million of the growth stems from our Concert global venture with AT&T.
Acquisitions of our interests in Esat, Telfort and other companies added
another £420 million.

     Mobile communications turnover rose by 21% from the growth in calls and
from the Esat Digifone acquisition in March 2000. Strong growth in fixed to
mobile calls and internet related calls on the UK fixed network were offset by
declines in traditional calls and reduced prices. BT's UK fixed network system
size grew by 1.8% driven by the growth in business line connections.

     Receipts from and payments to other communication operators increased
significantly due to the growth in transit traffic between UK operators.
Goodwill amortisation totalled £167 million. Net interest rose by £421 million
to £553 million as a consequence of the debt incurred by the group to finance
its recent acquisitions and the third generation mobile licences.

     During April 2000, BT won a third generation mobile licence in the UK
auction for £4.03 billion. In August, Viag Interkom, for which BT has an
agreement to take control in 2001, was awarded a licence in Germany. In July,
Telfort, which BT took control in the half year, gained a licence in the
Netherlands.

     Capital expenditure on plant, equipment and property totalled £2,045
million. Work continues on enhancing the UK fixed network to enable customers
to benefit from the new wave communications technologies.

     Net debt of £18,739 million at 30 September 2000 represents balance sheet
gearing of 113%.

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Group profit and loss account

(unaudited)
                                                                    6 months
                                                                      ended

                                                                  September 30
                                                                  2000   1999
                                                                  £m     £m
Turnover, including share of ventures                             14,394 10,316
Group turnover                                                    9,752  9,232
Total operating profit                                            1,520  1,704
Net interest payable                                              (553)  (132)
Profit before taxation (a)                                        1,032  1,662
Taxation                                                          (369)  (507)
Profit after taxation                                             663    1,155
Minority interests                                                (71)   4
Profit attributable to shareholders                               592    1,159
Interim dividend                                                  571    565
Earnings per share
- basic                                                           9.1p   17.9p
- diluted                                                         8.9p   17.5p
Earnings per share before goodwill amortisation and exceptional
items
- basic                                                           12.6p  17.8p
- diluted                                                         12.4p  17.4p
Interim dividend per share                                        8.7p   8.7p

(a) Including net exceptional gains of £65 million (1999 - £62 million)

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Group cash flow statement

(unaudited)
                                                              6 months ended

                                                               September 30
                                                            2000       1999
                                                            £m         £m
Inflow from operating activities, including ventures        2,768      2,854
Outflow for returns on investments                          (410)      (186)

and servicing of finance
Taxation paid                                               (140)      (250)
Outflow for capital expenditure and financial investment    (6,245)    (1,859)
Outflow for acquisitions                                    (5,207)    (3,156)
Equity dividends paid                                       (863)      (799)
Outflow before financing                                    (10,097)   (3,396)
Management of liquid resources                              (5)        1,364
Inflow from financing                                       10,276     2,205
Increase in cash                                            174        173

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Group balance sheet
                                                     30 September     31 March
                                                     2000     1999    2000
                                                       (unaudited)
                                                     £m       £m      £m
Fixed assets                                         38,683   23,872  29,818
Current assets                                       8,415    6,801   7,770
Current liabilities                                  (22,868) (8,699) (14,885)
Net current liabilities                              (14,453) (1,898) (7,115)
Total assets less current liabilities                24,230   21,974  22,703
Creditors: amounts falling due after one year        6,399    4,188   5,354
Provisions for liabilities and charges               1,176    1,550   1,056
Minority interests                                   590      636     498
Capital and reserves                                 16,065   15,600  15,795
                                                     24,230   21,974  22,703

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Notes

1     This statement has been prepared in accordance with the accounting
policies in the statutory accounts for the year ended 31 March 2000, except
that loans and other borrowings are now stated net of the effect of currency
swaps acting as hedges. The comparative figures have not been restated as the
impact is not material.

2     The figures for the year ended 31 March 2000 are extracts from those
accounts. A copy of the statutory accounts for that year, on which the
auditors have issued an unqualified report, has been delivered to the
Registrar of Companies.

3     The interim dividend will be paid on 12 February 2001 to shareholders on
the BT register on 3 January 2001, which is also the last date for lodging
mandates for the BT dividend investment plan.

If you have any queries as a shareholder please call Freefone 0808 100 4141.
Further information about BT and these financial results may be found on the
Internet at www.bt.com/shares.

British Telecommunications plc

81 Newgate Street, London EC1A 7AJ

________________________________________________________________________



Independent Review Report To British

Telecommunications Plc

Introduction

We have been instructed by the company to review the financial information as
set out in the tables and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.

Directors' responsibilities

     The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by the directors. The
Listing Rules of the Financial Services Authority require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

     We conducted our review in accordance with the guidance contained in
Bulletin 1999/4 issued by the Auditing Practices Board. A review consists
principally of making enquiries of group management and applying analytical
procedures to the financial information and underlying financial data and,
based thereon, assessing whether the accounting policies and presentation have
been consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.

Review conclusion

     On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 September 2000.

PricewaterhouseCoopers, Chartered Accountants

London, 8 November 2000