Reuters contract & Radianz

BT Group PLC
10 March 2005


                                        March 10, 2005

                       BT AND REUTERS SIGN MAJOR CONTRACT
                    BT also to acquire Radianz from Reuters

BT and Reuters (RTR:LSE) today announced that BT will become Reuters supplier of
network services in a contract under which Reuters is expected to spend in the
region of $3 billion over eight and a half years. BT will also acquire Radianz,
the leading financial services extranet provider, from Reuters for a
consideration of $175m for the business plus any cash remaining on the balance
sheet, net of working capital adjustments, at the date of completion.

Under the network services agreement, BT will provide and manage secure data
networks for Reuters products and services world wide. This will see Reuters
customers benefit from the breadth and flexibility of BT's global portfolio of
networked IT services. In addition, BT's skills and expertise in the provision
and management of highly resilient networks will enable Reuters to continue the
substantial improvements to its products.

The purchase of Radianz is an important step in BT's continuing transformation
into a global provider of networked IT services. The move is a logical evolution
for Radianz, strengthening its position as a neutral, shared market
infrastructure provider for the financial services industry. Following the
acquisition, Radianz will continue to provide high quality extranet services for
Reuters and the global financial services market. The company and its customers
will benefit from a broader range of integrated services in the future provided
by BT.

Tom Glocer, Reuters Group chief executive, said: "The network services agreement
with BT signals the start of an important relationship. It will see Reuters and
its customers benefit from the range of communication services that BT and
Radianz will provide to the financial services community. Along with the sale of
Radianz, it also sees Reuters exiting the provision and management of data
networks. This is a major contributor to our Fast Forward business
transformation programme and will allow Radianz to build upon its recent
successful performance. I look forward to working with BT as a partner."

Ben Verwaayen, chief executive, BT, said: "I am very excited about the
possibilities that come from this relationship and believe the benefits for both
companies will be significant. For Reuters, having a high-performance
communications network is central to its business. The network services contract
is the latest example of major enterprise customers choosing BT as their global
communications partner. The acquisition of Radianz is of strategic importance as
the global financial services market offers a huge opportunity to BT, and this
will form the cornerstone of our approach to this sector."

This is the latest in a series of announcements by BT of major customer contract
wins. It also follows the acquisitions of Albacom and Infonet. The deal
announced today is the result of the news in October 2004 that BT and Reuters
were in exclusive discussions about a long-term network services agreement and
ownership of Radianz. The completion of the network services agreement is
subject to the completion of the acquisition of Radianz by BT, which is subject
to final regulatory approvals and other customary completion conditions,
expected in the next three months.

The consideration for BT's acquisition of Radianz from Reuters will be satisfied
in cash at completion. Reuters intends to use the proceeds from the sale of
Radianz to invest in its business and pay down debt. As a result of the
transaction, future funding obligations from Reuters to Radianz of $44m will be
extinguished. Radianz had reported net assets of $185m as at 31 December, 2004
and a 2004 loss before tax of $2m (Radianz results are currently unaudited).


                                      Ends


About Reuters

Reuters (www.reuters.com), the global information company, provides
indispensable information tailored for professionals in the financial services,
media and corporate markets. Its trusted information drives decision making
across the globe based on a reputation for speed, accuracy and independence.
Reuters has 14,500 staff in 91 countries. This includes 2,300 editorial staff in
196 bureaux serving 129 countries, making Reuters the world's largest
international multimedia news agency. In 2004, Reuters Group revenues were £2.9
billion.

Reuters and the sphere logo are the trade-marks of the Reuters group of
companies.


Forward-looking statements

This presentation may be deemed to include forward-looking statements relating
to Reuters within the meaning of Section 27A of the US Securities Act of 1933
and Section 21E of the US Securities Exchange Act of 1934. Certain important
factors that could cause actual results to differ materially from those
disclosed in such forward-looking statements are described in Reuters Annual
Report and Form 20-F 2004 under the heading 'Risk Factors'. Copies of the Annual
Report and Form 20-F 2004 and the press releases referenced above are available
on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ. In
particular, Reuters ability to complete the transactions and realize the
anticipated benefits is subject to the risks that the conditions to such
transactions may not be not satisfied and that BT's acquisition and operation of
Radianz may not result in the anticipated benefits and efficiencies to Reuters.
Any forward-looking statements made by or on behalf of Reuters speak only as of
the date they are made, and Reuters does not undertake to update any
forward-looking statements.


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 IT and networking 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 20m 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 IT and networking 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.

In the year ended 31 March 2004, BT Group's turnover was £18,519 million with
profit before goodwill amortisation, exceptional items and taxation of £2,013
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


About Radianz

Radianz (www.radianz.com) is the leading provider of secure, reliable, and
scalable connectivity to the global financial community. The Company's shared
market infrastructure is a neutral platform that provides turnkey access to a
broad array of pre-trade, trade, and post-trade applications from leading
content and service providers across the straight-through processing (STP)
chain. In 2004, both the readers and editors of WATERS magazine in separate
surveys named Radianz "Best Network Provider."

Radianz and the lighthouse logo are trademarks of the Radianz group of companies
worldwide.

For Reuters
Johnny Weir (UK)             Telephone: [phone]
[e-mail]      Mobile: [phone]

For BT
Jenny Reardon (UK)           Telephone + 44 (0)20 7356 5369
[e-mail]
Eileen Connolly (US)         Telephone: [phone]
[e-mail]

For Radianz
Seetha Chinnappa (UK)        Telephone: [phone]
[e-mail] Mobile: [phone]
Eva Zaeschmar (US)           Telephone: [phone]
[e-mail]    Mobile: [phone]



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