BT sells Smartone stake

BT Group PLC
31 December 2002

                                                               December 31, 2002




                      BT AGREES ON SALE OF SMARTONE STAKE

BT announced today that it has agreed to sell its 21 per cent interest in
SmarTone, Hong Kong's third largest mobile operator, to Sun Hung Kai for a total
consideration of HK$1.03bn (£82.4m) in cash. The transaction, which is expected
to complete in January, is part of BT's programme of non-core asset disposals
and another step in its debt reduction programme.

BT will, of course, continue to operate in the Asia Pacific region serving
multisite corporates through BT Ignite.

About BT Ignite

BT in Asia Pacific is part of BT Ignite. BT Ignite is BT's business services and
solutions division, serving customers worldwide. As an information and
communications technology service provider, BT Ignite provides integrated data
and value-added services to meet the needs of global multi-site corporates.

BT's extensive global network and strong strategic partnerships enable BT Ignite
to serve customers in all key commercial centres of Europe, North America and
Asia.

The BT Ignite portfolio ranges from desktop and network equipment and software,
transport and connectivity, IP-based e-business solutions, managed network
services and systems integration to consultancy for complex global requirements.

With 18 years of experience in global account management, BT Ignite has 50 per
cent of people based outside the UK, serving large business customers worldwide.
In Asia Pacific, BT has approximately 300 staff in 11 countries.

Further information is available at www.btignite.com



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