Re Agreement

British Telecommunications PLC
7 November 2000


November 7, 2000

                        BTOPENWORLD AND ONDIGITAL DEAL

                  SIGNALS START OF INTERNET BY TV REVOLUTION

BTopenworld, BT's global Internet business, today announced a deal with
ONdigital to make Internet access available to customers through their
televisions.

Under the agreement, BTopenworld becomes the virtual Internet service provider
(VISP) for ONdigital's new web TV service, ONnet, launched in September. In
the first two weeks after launch more than 20,000 customers have signed up to
ONnet.

Both BTopenworld and Ondigital believe that this is the start of massive
growth in Internet by TV, which is predicted to attract 80 million European TV
surfers by the year 2005.

BTopenworld's Internet access service enables new and existing ONdigital
customers with a net box and a telephone line to surf the world wide web and
access e-mail via their television. They can also 'click through' from the
Internet to their favourite TV programmes and back again using Net links, or
use the picture-in-picture facility to surf and watch TV at the same time.

Ben Andradi, president and chief operating officer of BTopenworld, said: 'Our
agreement with ONdigital is an essential part of BTopenworld's strategy to
become the leading ISP for next generation Internet services accessible from a
range of devices, including WAP mobile phones, multi-phones, PCs or the TV. It
demonstrates our commitment to providing industrial strength products that
will continue to power the Internet.'

Rob Fyfe, ONdigital's chief operating officer, said: 'We are delighted that
BTopenworld is our partner in this project. The expertise and knowledge that
BTopenworld bring to ONnet is invaluable.'

The ONnet home page is hosted by BTopenworld in conjunction with the hosting
arm of Ignite, BT's international broadband Internet Protocol (IP) business.
It uses the same technology platform as BTopenworld's own retail broadband
portal and high-speed Internet services.