Technical interest adjustment

BT Group PLC
27 March 2002

                           BT - SPECIAL PURPOSE TRUST

Adjustment to share interests of Directors

BT Group plc

BT Group plc advises that, on 27 March 2002, The Royal Bank of Scotland Trust
Company (Jersey) Limited (the Trustee), as trustee of a discretionary employee
trust established by British Telecommunications plc (BT)) (the Trust),
transferred 375,617 ordinary shares in BT Group plc (BT Group Shares) and
375,617 ordinary shares in mmO2 plc (mmO2 Shares) to a total of 395
beneficiaries of the Trust in satisfaction of options held by them under the BT
Employee Sharesave Scheme 1994.

Following this transfer, the Trustee holds 45,286,908 BT Group Shares, as well
as 45,286,908 mmO2 Shares. The Executive Directors of BT Group plc (Ben
Verwaayen, Sir Christopher Bland, Philip Hampton, Andy Green, Pierre Danon and
Paul Reynolds) are for the purposes of the Companies Act 1985 treated as
interested in all of the BT Group Shares held in the Trust. Despite this
technical interest in all of the BT Group Shares, each Executive Director will
only be entitled to receive from the Trustee the number of BT Group Shares to
which he is entitled on the exercise of options held by him under the BT
Employee Sharesave Scheme 1994. Such options are only exercisable until 19 May
2002.

Date of notification 27 March 2002

ends



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