Transaction in Own Shares

BT Group PLC
01 September 2004


Wednesday, 1 September 2004
                                  BT GROUP PLC
                           TRANSACTION IN OWN SHARES

BT Group plc announces that it has today purchased through Cazenove & Co. Ltd
3,000,000 ordinary shares at a price of 182.12 pence per share. The purchased
shares will all be held as treasury shares.

Following the above purchase, BT Group plc holds 80,214,601 ordinary shares as
treasury shares. The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 8,554,414,437.

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