Strategic Agreement with BT Signed

Smith (W.H.) Group PLC
25 January 2000


WHSmith signs strategic agreement with BT

WHSmith today (26 January) announced a strategic agreement with BT
which will give it access to millions of new internet users through
BT's internet businesses, including btclick.com, BT Internet, and BT's
free eMail address service talk21.

WHSmith Online will become BT's principal books retailer on all BT-
controlled portals.

BT will become WHSmith Online's preferred communications supplier,
continuing to provide internet access through BT Click and now free
eMail through its talk21 service. talk21 will benefit new WHSmith
Online customers who will be able to access their email on all BT
platforms.  BT will also provide call centre support for the WHSmith
Online ISP services.

This agreement gives WHSmith access to all of BT's users via existing
and future platforms including BT Easicom.  Discussions concerning
BTCellnet, Wireless Application Protocol (WAP) services for use with
mobile phones and other integrated access devices in developments from
BT such as webphones, are also underway.  BT plans to reach millions
of additional households with these new devices over the next 18
months.

WHSmith Group Chief Executive, Richard Handover, said the strategic
relationship was a further step in WHSmith's plans to provide its
customers with the opportunity to shop wherever, whenever and however
they want.  He said 'This relationship brings us closer to achieving
our aim of 30 per cent of the UK online book market in the next three
years.'

WHSmith and BT will work together to develop both companies' interests
in the education market combining WHSmith's educational content and
digital capabilities with BT's technical and Internet market
expertise.

Ben Andradi, managing director of BT Internet & eBusiness, said 'BT is
delighted to be working more closely with WHSmith to support its ISP
service and now to jointly develop online initiatives, particularly
around retailing and education where the WHSmith brand is known and
trusted.  This new agreement combines WHSmith's strengths with BT's
expertise in the Internet world and will greatly enhance our customers
experiences.'


Enquiries:

WH Smith Group PLC                           0171 409 3222
Tim Blythe, Corporate Affairs Director
                                             
BT Internet & Multimedia Services            0171 492 8470
David Pincott


Notes to editors:

1.  WHSmith Online  (www.whsmith.co.uk) is one of the UK's leading
    online service providers.  Along with subscription-free access to the
    Internet, WHSmith Online offers a living library of educational,
    lifestyle and entertainment material, plus a virtual shopping mall of
    retail services. WHSmith customers can collect a free WHSmith Online
    CD-ROM from any branch of WHSmith or download the service from the
    whsmith.co.uk website.

2.  BT Internet & eBusiness is one of the UK's largest provider of
    online services for consumer and business use.  Its product portfolio
    includes:

*  BT Internet - providing a range of Internet services
*  btclick.com - free internet access service with no registration,
   fixed term contracts or monthly subscriptions
*  talk21 - free email address service
*  A wide ranging portfolio of eBusiness solutions and Intranet
   services.

Joint venture initiatives include:

*  LineOne, a web-based service offering internet connection and
   online UK focused content.  A joint venture between BT and United News
   & Media.
*  Bib, British Interactive Broadcasting, a joint venture between BT,
   BSkyB, HSBC and Matsushita - providing digital interactive television
   services.