Acquisition

BT Group PLC
31 July 2006


DC06-374                                                           July 31, 2006


                         BT ACQUIRES TELEXIS IN POLAND


BT and Fiat Group today announced that BT has acquired Telexis Polska, Fiat's
Polish telecommunications line of business. Telexis provides services to both
Fiat Group and external customers.

The transaction follows the acquisition of Fiat's Italian telecommunications
subsidiary, Atlanet, which was completed in February 2006. It marks an important
step in the delivery of BT's global contract worth €450 million over five years
to supply telecommunications services to Fiat.

The Fiat Group has extensive operations in Poland, where it employs 9,000 people
and manufactures its Fiat Panda and Cinquecento models. The implementation of
the global telecommunications contract in Poland will now enable Fiat to focus
further on its core activities, whilst benefiting from BT's expertise in
networked IT services.

Olivier Campenon, BT EMEA president, said: "I am delighted to add Fiat Group to
the growing list of major organisations we are servicing in Eastern Europe. The
acquisition of Telexis in Poland is an important milestone in the delivery of
the global contract with Fiat and validates BT's unique strategy that combines
local and global networked IT capabilities. It enhances our investment and
momentum in Poland, and further demonstrates our continuing success in winning
global contracts with leading multi-national companies across the world."

The acquisition of Telexis from Fiat further strengthens BT's position in the
Central and Eastern European market by consolidating the local relationship with
Fiat, bringing key skills and over 100 customers. Many of these have supply
chain relationships with Fiat.

Telexis achieved revenues of around €3 million for the year ending 31 December
2005 and the line of business employs 27 people. BT will pay cash consideration
of approximately €1.2 million.

ENDS

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, and
higher-value broadband and internet 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 2006, BT Group's revenue was £19,514 million with
profit before taxation of £2,040 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


For further information please contact:

Marek Zaleski, Weber Shandwick Poland: T: + 48 605601976or

Jessica Yudilevich, BT Newsroom: T: + 44 (0) 207 356 5375 or 
                                 mob: + 44 7710 035 005


                      This information is provided by RNS
            The company news service from the London Stock Exchange