BT Openworld changes

BT Group PLC
09 December 2002

                                                                December 9, 2002





                      BT REAFFIRMS FUTURE OF BT OPENWORLD



BT today announced a clear roadmap for the future of BT Openworld, its dial-up
and broadband internet access service business. The move will produce added
benefits for customers by creating centres of excellence and reducing overlaps.

The current business will be divided with the BT Openworld internet access and
portal services internet service provider (ISP) reporting to a new managing
director, Duncan Ingram. All other parts of the BT Openworld portfolio will move
to BT Retail, including the internet operations, development and customer
service team, and other internet value-added services currently available to
both BT Openworld and BT Broadband customers such as sportal.com, GamesDomain
and dotmusic. These changes see BT effectively move to a business model common
amongst other ISPs where the ISP focuses on its core business and "buys in"
added-value services.

     Ben Verwaayen, chief executive of BT, said: "Today's exciting move will
allow us to work smarter and create a more customer focused business by removing
unnecessary overlaps and realising synergies.

"The decision to bring the added-value services into BT Retail comes at the
right time in their evolution and is a clear sign of their maturity. At BT
Openworld's inception it was right to manage those services separately, but now
it is right to realise the benefits of joint management.

"With Alison Ritchie taking on her new role as chief broadband officer I have
asked Duncan Ingram to take management responsibility for BT Openworld and to
report to Pierre Danon."

Pierre Danon, BT Group main board director, and chief executive of BT Retail,
said: "I am firmly committed to the future of

BT Openworld, which is a strong brand and has made a significant impact in the
UK's dial-up and broadband markets. My strategic intent is to increase further
its focus on customer satisfaction and service and I am convinced that customers
will see real benefits as a result.

BT Openworld will be run under my wing as a separate business, independent of
the rest of the BT Retail offering.

"Bringing the operations, and customer service team, and other internet
value-added services under the same roof is a smart move. These services are
already available to both BT Openworld and BT Broadband customers and so
combining the operations will generate greater customer focus and realise
synergies.

"The people behind these value-added services at BT Openworld have already
demonstrated their tremendous creativity and flair and I am looking forward to
welcoming them to my team."

The changes, which take place from January 1, 2003, will not result in any
alterations to the terms and conditions of BT Openworld customers.

     The changes will also result in some cost savings, with the main benefits
coming from the avoidance of the duplication of activities in the future. The
savings are in addition to previously announced cost savings targets. In
addition, BT does not expect any change to its headcount profile beyond the
projected numbers announced as part of its normal programme.

                   -----------------------------------------





Inquiries about this news release should be made to the BT Group Newsroom on its
                         24-hour number: 020 7356 5369.

                  From outside the UK, dial + 44 20 7356 5369.

          All BT Group news releases can be accessed at our web site:

                           www.btplc.com/mediacentre


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