Product Launch

BT Group PLC
08 December 2005



                              NOT FOR PUBLICATION:

                   EMBARGOED UNTIL 00.01HRS DECEMBER 8, 2005


        DC05-806                                        December 8, 2005


BT ANNOUNCES ITS FIRST CONTENT DEALS FOR NEXT GENERATION TV WITH BBC WORLDWIDE,
                        PARAMOUNT AND WARNER MUSIC GROUP

BT today announces landmark deals with three of the world's biggest
entertainment companies, BBC Worldwide, Paramount and Warner Music Group.

The agreements bring the launch of BT's TV over broadband service an
important step closer. Starting next Autumn, BT customers will be able to enjoy
a vast range of on-demand film, music and television programming as well as a
compelling interactive and communications service through their TV sets.

BT's service will be a world first combining access to digital terrestrial
channels, an extensive video on demand library and a range of interactive
services. The unique combination of these unrivalled services will provide BT
customers nationwide with choice, convenience and control over their home
entertainment without the need to commit to expensive monthly subscriptions.

Ian Livingston, BT Retail CEO, said: "A partnership between the country's
leading communications company and three of the world's leading entertainment
groups is great news for consumers in the UK. I'm delighted the BBC Worldwide,
Paramount and Warner Music Group share our vision. Our customers will be able to
enjoy enhanced TV services and easy access to a wealth of interactive content
and new services straight to their TV. Whether you are a music fan, love films
or hooked on drama you will get the best in entertainment when you want it. BT
is defining next generation TV ".

John Smith, CEO BBC Worldwide, said, "With video on demand rapidly shaping
the future of television, we are very pleased to be part of BT's TV service from
the outset, providing subscribers with blue chip programmes and high quality
viewing."

Nick Phillips, Chairman of Warner Music UK, said, "We are pleased to
partner with BT as the first music provider to this innovative distribution
service. Industry leading agreements and unique partnerships like the one we
announce today are an important component of Warner Music's global strategy to
become a multifaceted, music content company."

The agreement with Paramount provides BT with Paramount's blockbuster films
in the pay-per-view window as well as an extensive range or older and classic
films from the famous Paramount movie archive, all on demand.

The announcement today follows BT recent agreements with Europe's largest
electronics company Philips to supply the set top box which will deliver the
high definition services and an alliance with Microsoft, which will provide
Microsoft TV IPTV Edition as the software platform.

For more information:

Giles Deards/Michael Jarvis, BT Group Newsroom 020 7356 6045

Inquiries about this news release should be made to the BT Group Newsroom on its
24 hour number: 020 7356 5369. From outside the UK, dial [phone].

Mark Macdonald, BBC Worldwide Tel: [phone] Mobile [phone]

Cathy Dunkley, (Warner Music International) Freud Communications 020 7291 6355



NOTES TO EDITORS:

BT revealed on 26 October, 2005 that its next generation TV service will be
available to BT broadband customers without the need for a subscription fee and
services available at launch or shortly afterwards will include entertainment on
demand - an extensive library of movies, TV and music all available instantly;
catch-up TV - programmes from the previous seven days broadcast schedule will be
available on demand without the need to record; flexible payment - no mandatory
subscriptions; pay-per-view options; a Personal Video Recorder capable of
storing up to 80 hours of programming; more than 30 digital terrestrial TV
channels; Communication services such as instant messaging, chat and video
telephony on TV and interactive services such as online games, retail
opportunities and community services.

BT is the only company in the UK committed to providing such a nationwide
service and trials will begin next spring / early summer.



BBC Worldwide Ltd

BBC Worldwide Limited is the main commercial arm and a wholly owned subsidiary
of the British Broadcasting Corporation (BBC). The company exists to maximise
the value of the BBC's assets for the benefit of the licence payer and invest in
public service programming in return for rights. In 2004/05 BBC Worldwide
returned £145 million to the BBC from its six business operations: TV Channels,
TV Sales, BBC Magazines, Home Entertainment, Children's and New Media.

About Warner Music International

Warner Music International, a leading company in national and international
repertoire, is headquartered in London and operates through numerous affiliates
and numerous licensees in over 50 countries.

About BT

BT is one of the world's leading providers of communications solutions serving
customers in Europe, the Americas and Asia Pacific. Its principal activities
include networked IT services, local, national and international
telecommunications services, and higher-value broadband and internet products
and services.

BT consists principally of three lines of business:

• BT Retail, providing a comprehensive range of communications and related
  services to more than 20 million UK consumers and businesses.

• BT Wholesale, providing network services and solutions within the UK to
  more than 600 fixed and mobile operators and service providers including the
  provision of broadband and private circuits.

• BT Global Services, providing networked IT services to meet the needs of
  multi-site organisations globally. BT Global Services operates in more than 
  130 countries and also offers international carrier services.

From January 2006, there will be a fourth business called Openreach. This
business will be responsible for the nationwide local BT network which covers
the "first mile" of wires that connects homes and businesses across the UK to
their service providers. Openreach will provide communications providers with
services and products associated with that network.

In the year ended 31 March 2005, BT Group's turnover was £18,623 million with
profit before taxation of £2,354 million.

BT Group plc is listed on stock exchanges in London and New York. British
Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt

A wide selection of BT images are available for download via the image library
at www.vismedia.co.uk.

                      This information is provided by RNS
            The company news service from the London Stock Exchange