Issue of Debt

BT Group PLC
03 October 2003

BT (INTERNATIONAL) HOLDINGS LIMITED ISSUES BONDS

BT Telecommunications plc ("BT") today announced that it's wholly owned
subsidiary BT (International) Holdings Limited had issued bonds guaranteed by BT
to two other wholly owned subsidiary undertakings of BT. The bond issue
represents a formalising of existing internal funding and the bond listing has
no affect on the net and gross debt position of the BT Group. The total sterling
value of the issued bonds was £2.6bn and the bonds have maturities from 2021 to
2025. The bonds are listed on the Luxembourg Stock Exchange.

BT Group plc is the listed holding company for an integrated group of businesses
providing voice, data and video services in the UK and elsewhere in Europe.
British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds
virtually all businesses and assets of the BT Group.


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