Tender Offer

British Telecommunications PLC
14 June 2001

NR0132

British Telecommunications PLC

14 June 2001

International Tender for the sale of new BT shares not subscribed for under
the Rights Issue


Background

Under the terms of the BT rights issue (the 'Rights Issue'), the latest time
and date for acceptance of the Rights Issue is 9.30am on Friday 15 June 2001.
Investors who wish to take up their rights should submit their completed PAL
and cheque to Lloyds Registrars or comply with the appropriate CREST
procedures by this time.


In accordance with the terms and conditions of the Rights Issue, Cazenove &
Co. Ltd ('Cazenove') and Merrill Lynch International ('Merrill Lynch'), acting
as agents for BT, have undertaken to use reasonable endeavours to procure
subscribers for those new BT shares not validly subscribed for by this date.


As indicated in the Rights Issue prospectus, this process will be undertaken
by way of an international strike price tender ('the International Tender').
Cazenove and Merrill Lynch will be acting as joint bookrunners to the
International Tender (the 'Joint Bookrunners').



Timetable

The International Tender is expected to occur in the week beginning Monday, 18
June 2001.


On the day of the International Tender (the 'Tender Date'), a London Stock
Exchange Regulatory News Service ('RNS') announcement confirming the launch of
the International Tender will be published at 7.00a.m. This notice will
include the number of new BT shares to be included in the International Tender
along with full details of the International Tender rules and bidding process.



Pre-registration

Institutional investors and London Stock Exchange member firms are invited to
pre-register their interest in participating in the International Tender.
Pre-registration will be one of the allocation criteria in the International
Tender. Investors who have pre-registered their interest may request a bidding
form and a full copy of the International Tender rules on the day of the
International Tender. Those institutions wishing to pre-register should either
speak to their usual Cazenove or Merrill Lynch representative, or call Mr
Michael Willmott (Tel: [phone]) or Mrs Louise Clarke, (Tel: +44
(0) 207 512 6379) at Cazenove or Jacqui Wittingham (Tel: [phone])
at Merrill Lynch.



Details of the International Tender


Full details of the tender rules and allocation criteria to be applied to bids
made in the International Tender will be published at the time of its launch.

Contacts:

Cazenove & Co Ltd                     Telephone: + 44 20 7588 2828

David Mayhew

Edmund Byers

Merrill Lynch International           Telephone: + 44 20 7628 1000

Rupert Hume-Kendall

Rupert Evenett





This announcement, which has been issued by, and is the sole responsibility
of, British Telecommunications public limited company ('BT'), has been
approved by Cazenove & Co. Ltd and Merrill Lynch International, each of which
is regulated in the UK by The Securities and Futures Authority, solely for the
purposes of Section 57 of the Financial Services Act 1986.

Each of Cazenove & Co. Ltd and Merrill Lynch International is acting for BT
and no one else in connection with the Rights Issue and the International
Tender and will not be responsible to anyone other than BT for providing the
protections afforded to customers of Cazenove & Co. Ltd or Merrill Lynch
International respectively or for providing advice in relation to the Rights
Issue or the International Tender.

This announcement does not constitute, or form part of, an offer or any
solicitation of an offer, for securities.

Not for distribution in or into the United States. Any failure to comply with
this restriction may constitute a violation of U.S. Securities laws.

The above materials are not an offer of securities for sale in the United
States. The securities being offered in the International Tender may not be
sold in the United States absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. A registration
statement relating to these securities has been filed with the U.S. Securities
and Exchange Commission has become effective. Any public offering of the
securities in the United States will be made only by means of a prospectus
containing detailed information regarding BT (the 'Company') and the Company's
management, including financial statements. Such prospectus is available
through the Company.