Management Changes

British Telecommunications PLC
21 May 2001


May 21, 2001

                  SENIOR MANAGEMENT CHANGES AT VIAG INTERKOM

VIAG Interkom, BT wireless' German mobile business, today announced changes to
its senior management team.

Maximilian Ardelt (61) has decided to step down as chief executive officer
with Keith Cornell (44), president of Europe for BT wireless, taking over as
acting chief executive officer. Ardelt will continue to act as advisor to BT
wireless and Keith Cornell on regulation, politics and the competitive
environment in Germany. In addition, Hans-Burghardt Ziermann (47), chief
operating officer, has decided to leave the company.

As a board member of VIAG AG (now E.ON), Ardelt was a key figure in
establishing VIAG Interkom, initially as a fixed network business, in
partnership with BT. After the award of the fourth German GSM mobile licence
in 1997, Hans-Burghardt Ziermann, previously CEO of Cellway - the Munich
Service Provider, joined the company. Since then VIAG Interkom has
successfully attained its goals and in the third year after market entry is
well established as an innovative, competitive operator.



BT took 100 per cent ownership of VIAG Interkom in February this year and
since then the business has been successfully separated into fixed and mobile
businesses.

Ardelt said: 'I am proud to have been part of the successful creation of VIAG
Interkom, which is known for its creativity and innovation. With the start of
mobile data communications, it is exactly the right time to hand over the
leadership of VIAG Interkom as it enters this new phase and for me to focus on
other tasks. My thanks go to my colleagues and the fantastic employees who
have made this success story possible.'

Ziermann said: 'To have been part of creating such a successful business in
such a short period of time was a challenge I would not like to have missed.'

Commenting on the change Peter Erskine, CEO BT Wireless, said: 'This is an
exciting period for the BT Wireless business as we move towards independence.
I would like to thank Max for his significant contribution to VIAG Interkom
during its build up and the development of VIAG Interkom into one of the most
successful 2nd generation mobile operators.

'Keith has a strong record in mobile business in Europe. We are confident that
he will continue the company's successful growth record and establish a
leadership position for VIAG Interkom in mobile data.'

Cornell previously worked at Firstmark communications, Vodafone and AirTouch -
where he was responsible for the company's mobile operations in Southern
Europe.

VIAG Interkom

VIAG Interkom is a wholly-owned subsidiary of the BT wireless group of
companies. Since launch in October 1998, VIAG Interkom has grown to more than
four million customers and a 7.4 per cent market share.

In January 2001, BT acquired the 10 per cent shareholding of Telenor and in
February 2001, BT acquired E.ON's 45 per cent shareholding. BT wireless
includes wholly-owned mobile operation in the UK (BT Cellnet), Ireland (Esat
Digifone), the Netherlands (Telfort) and Germany, with 16.9 million mobile
customers as at March 31, 2001, serving territories with a total population of
161 million. BT wireless also includes Genie, one of Europe's leading mobile
Internet portals, with four million registered users world-wide.

BT announced on May 10 that it intends to de-merge BT wireless before the end
of this year.


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