Sale of ePeopleserve stake

BT Group PLC
28 February 2002


February 28, 2002


                        BT SELLS STAKE IN E-PEOPLESERVE

BT today announced that it has agreed to sell its fifty per cent holding in
e-peopleserve, the human resources outsourcing business, to its partner
Accenture, for US$70 million cash.

Under the agreement, BT will also receive additional payments from an
earn-out arrangement based on e-peopleserve revenues from customers other than
BT and Accenture over the next five years. These additional earn-out payments
will total between US$35.0 million and US$222.5 million. The consideration
received by BT will be used to reduce debt.

e-peopleserve will be positioned by Accenture as a core service offering
focusing on the HR outsourcing market, and will continue to provide BT with HR
services.

Philip Hampton, BT Group finance director, said: "The sale is in line with our
strategy of focusing on core activities and reflects our continued success in
reducing BT's net debt. We believe the future of e-peopleserve is best served
within the Accenture organisation which is looking to accelerate the growth and
development of the business globally. BT will also retain significant value and
interest in the future success of the business through the earn-out
arrangement."

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

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 [phone].

               All news releases can be accessed at our website:

                        http://www.btplc.com/mediacentre







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