Transaction in Own Shares

BT Group PLC
21 August 2006


Monday 21 August 2006
                                  BT GROUP PLC
                           TRANSACTION IN OWN SHARES

BT Group plc announces that it has today purchased through Merrill Lynch
International 1,250,000 ordinary shares at a price of 240.8671 pence per share.
The purchased shares will all be held as treasury shares.

Following the above purchase, BT Group plc holds 304,789,539 ordinary shares as
treasury shares. The total number of  ordinary shares in issue (excluding shares
held as treasury shares) is 8,333,839,924.

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