Technical Interest Adjustment

BT Group PLC
17 January 2002

                          BT - SPECIAL PURPOSE TRUST

Adjustment to share interest of Directors

BT Group plc

BT Group plc advises that, on 16 January 2002, The Royal Bank of Scotland
Trust Company (Jersey) Limited (the Trustee), as trustee of a discretionary
employee trust established by British Telecommunications plc (BT)) (the
Trust), transferred 2,215,225 ordinary shares in BT Group plc (BT Group
Shares) and 2,215,225 ordinary shares in mmO2 plc (mmO2 Shares) to a total of
2,198 beneficiaries of the Trust in satisfaction of options held by them under
the BT Employee Sharesave Scheme 1994.

Following this transfer, the Trustee holds 48,045,795 BT Group Shares, as well
as 48,045,795 mmO2 Shares. The Executive Directors of BT Group plc (Ben
Verwaayen, Sir Christopher Bland, Sir Peter Bonfield, Philip Hampton, Andy
Green, Pierre Danon and Paul Reynolds) are for the purposes of the Companies
Act 1985 treated as interested in all of the BT Group Shares held in the
Trust. Despite this technical interest in all of the BT Group Shares, each
Executive Director will only be entitled to receive from the Trustee the
number of BT Group Shares to which he is entitled on the exercise of options
held by him under the BT Employee Sharesave Scheme 1994. Such options are only
exercisable until 19 May 2002.

Date of notification 17 January 2002

ends