Transaction in Own Shares

BT Group PLC
31 March 2004

Wednesday, 31 March 2004

                                  BT GROUP PLC

                           TRANSACTION IN OWN SHARES

BT Group plc announces that it has today purchased through Merrill Lynch
International 2,500,000 ordinary shares at a price of 177.57 pence per share.
The purchased shares will all be held as treasury shares.

Following the above purchase, BT Group plc holds 44,349,000 ordinary shares as
treasury shares.  The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 8,590,280,038.


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