Virgin Media Contract

BT Group PLC
07 December 2007



DC07-592 07 December, 2007


  VIRGIN MEDIA SELECTS BT WHOLESALE AS SUPPLIER OF FIXED-LINE TELEPHONE SWITCH
                             OPERATIONS AND SUPPORT


         New £98 million Fixed-Line Voice Network Management Agreement


Virgin Media Inc. (NASDAQ: VMED) and BT Wholesale today announced the signing of
a major new five year managed network telephony agreement. Under the terms of
the agreement, BT Wholesale will manage the operation and maintenance of Virgin
Media's UK fixed-line voice switching network, as well as a number of Virgin
Media's existing support contracts with specialist third-party hardware and
software suppliers for transmission equipment on its behalf.

The total value of the contract is worth an estimated £98 million and will allow
Virgin Media to enjoy significant cost savings as well as focusing on developing
the future of its voice network business. Virgin Media's fixed-line voice
switching network supports around 20 percent of all landline telephone
connections in the UK. 184 skilled Virgin Media employees have transferred to BT
Wholesale as part of the agreement.

Paul Weir, Managing Director of Networks for Virgin Media said : "Our telephony
switching network remains an important asset within Virgin Media, and by
utilising BT Wholesale we gain operational cost efficiencies ahead of the
network's eventual upgrade to Voice over Internet Protocol technology, whilst
keeping guaranteed levels of service for our customers."

Sally Davis, chief executive, BT Wholesale, said: "Virgin Media's selection of
BT Wholesale to manage its fixed-line telephone switching network adds to the
roll-call of industry heavyweights who have chosen to benefit from BT's
capability in delivering managed network solutions. BT's management of Virgin
Media's existing voice network, one of the largest such contracts in Europe,
will help Virgin Media to continue to meet its customers' needs while gaining
the benefits of service flexibility and economies of scale."

                                      Ends


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About Virgin Media

Virgin Media is an innovative and pioneering UK entertainment and communications
business. For the first time consumers can get everything they need from one
company - the UK's only quad play of TV, broadband, phone and mobile plus the
most advanced TV on demand service available, the UK's first high definition TV
service and V+, our high specification personal video recorder. We're the UK's
most popular residential broadband provider, the largest virtual mobile network
operator and the second largest provider of pay TV and home phone.

Virgin Media owns two content businesses - Virgin Media Television (VMTV) and
sit-up. VMTV owns seven entertainment channels - Virgin1, Living, Living 2,
Bravo, Bravo 2, Challenge, and Trouble - and is a 50% partner in UKTV which
consists of nine channels including Dave, UKTV Gold and UKTV History. sit-up
runs retail TV channels bid tv, price-drop tv and speed auctiontv.


Virgin Media is the largest Virgin company in the world and has almost 10
million customers. To find out more visit www.virginmedia.com/presscentre.


About BT

BT is one of the world's leading providers of communications solutions and
services operating in 170 countries.  Its principal activities include networked
IT services; local, national and international telecommunications services;
higher-value broadband and internet products and services and converged fixed/
mobile products and services.  BT consists principally of four lines of
business: BT Global Services, Openreach, BT Retail and BT Wholesale.


In the year ended 31 March 2007, BT Group plc's revenue was £20,223 million with
profit before taxation of £2,484 million.


British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.  BT Group plc
is listed on stock exchanges in London and New York.


For more information, visit www.bt.com/aboutbt




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