Yell closure

British Telecommunications PLC
25 June 2001


                                                                 June 25, 2001


                   BT ANNOUNCES CLOSURE OF THE SALE OF YELL


BT today announced the closure of the sale of Yell Group ('Yell'), its
international directories business, to a newly formed company jointly owned by
Apax Partners and Hicks, Muse, Tate & Furst following Hart Scott Rodino
clearance in the US.

The consideration comprises £2.04 billion in cash and £100 million in
interest bearing vendor loan notes and will be used by BT to reduce debt.

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                                    Yell:

                  Richard Duggleby      [phone]

                     Jon Salmon      [phone]

                 Main press office      [phone]