Transfer of operations

British Telecommunications PLC
8 May 2001

                                                                   May 8, 2001



BRITISH TELECOMMUNICATIONS PLC ANNOUNCES INTENTION TO CONTRIBUTE FLUXUS S.A TO
                                 I.NET S.p.A.

British Telecommunications plc (BT) has today announced its intention to
contribute Fluxus, its leading web hosting business in France, to I.NET S.p.A.
the web hosting operation in Italy of which BT owns a majority share, in
exchange for an additional shareholding in I.NET.

Fluxus, set up in 1994 and previously operating as FranceNet, has two Paris
data centres, over 160 skilled employees and a portfolio of more than 200
corporate clients. Fluxus' revenue in 2000 was Euro16m. There is a strong
strategic fit between Fluxus and I.NET, as both service providers focus on the
large and medium customer segment of the Internet market by delivering high
value-added web hosting solutions.



ENDS