Preferred Bidder

Land Securities PLC
10 April 2001

April 10, 2001



                   LAND SECURITIES TRILLIUM SELECTED BY BT

                  AS PREFERRED BIDDER FOR PROPERTY PORTFOLIO


Land Securities Trillium and William Pears Group ('Trillium'), in a
fifty-fifty joint venture, have today been selected by BT as preferred bidder
with the aim of finalising the proposed divestment and ongoing management of
its property portfolio.  The transaction is expected to complete during the
summer.

BT's property estate totals six million square metres (64 million square feet)
and its divestment would represent a key step in enabling the company to focus
on its core business.  The preferred bid would allow BT the flexibility to
vacate approximately one million square metres (ten million square feet) of
property within the first ten years at no additional cost.

Manish Chande, chief executive of Land Securities Trillium, said: 'We are
delighted BT has chosen us as its preferred bidder for this unique property
transaction and we look forward to working with BT to bring the contract to
its conclusion.

'Our alliance with BT opens up an exciting new phase in the development of
Land Securities Trillium and enables us to build on our expertise in managing
large and complex operational estates as well as fulfilling the needs of
today's corporate occupier.  We recognise that the skills and experience the
people in the BT Property team would bring would be extremely valuable as we
look to build our relationship with BT.'

Geoffrey Almeida, chief executive of BT Business Services, said: 'I am
delighted to be able to work with Trillium towards finalising our alliance.
This transaction will be the largest UK property deal to date and has great
potential to deliver comprehensive benefits to BT. The proposed alliance with
Trillium would also represent an exciting opportunity for BT people in our
Property division as they would be able to develop and build their expertise
with a leading real estate company.  This was a very close competition as we
had excellent bids from both Trillium and Mapeley.'

The disposal remains subject to the conclusion of commercial negotiations
between BT and Trillium.

                                    -ends-


ENQUIRIES:

BT Newsroom                                               020 7356 5369
Brunswick/Locksley Ryan                                   020 7404 5959
Land Securities/Emma Denne                                020 7333 9208
Financial Dynamics/Stephanie Highett                      020 7831 3113


NOTES FOR EDITORS:

BT Business Services is responsible for BT's property estate which comprises
7,500 properties, with a total floor space of six million square metres.
Seventy per cent of these are operational buildings for which BT will retain
the freehold and exclusive control.

The divestment of the property estate will enable a more flexible approach to
BT's office arrangements and building requirements.  The transaction is
expected to make a contribution to reducing BT's headline debt with cash
receipt expected during 2001.

Land Securities Trillium is bidding with the William Pears Group through a 50/
50 joint venture company called Telereal Ltd.

Trillium was established in 1997 and acquired by Land Securities PLC in
November 2000. It combines capital, estate and facilities management expertise
in a total outsourcing package. In 1998, Trillium won the PRIME contract to
own and manage the majority of the Department of Social Security's property
portfolio. In March 2001, Land Securities Trillium was selected by the BBC as
the preferred bidder for its property portfolio. Land Securities Trillium is
also one of two shortlisted bidders for the London Underground Property
Partnership.

Land Securities is one of Britain's leading real estate providers with assets
of £7.7 billion.  The company's portfolio includes a balanced mix of offices,
shops, shopping centres, retail warehouses, leisure and industrial properties.

The William Pears Group is one of the largest private companies in the UK. It
holds substantial property interests and is involved in a large number of
joint ventures.