BT Recognised Among ''Bold 100'' by CIO Magazine; Company Receives Annual CIO Award for Bold Risk-Taking in Conservative Environment.

LONDON -- BT (NYSE:BT) announced today that it is a recipient of CIO magazine's 2005 CIO 100 award. The annual award program recognises organisations around the world that exemplify the highest level of operational and strategic excellence in information technology (IT). This year's award theme, Bold 100, recognises executives and organisations that embrace great risk for the sake of great reward. The selections are published in the August 15 issue of CIO magazine, as well as online at www.cio.com.

"The Bold 100 honorees stand out because they have dared to take on risk for the chance of reward in an extremely conservative business climate," said Abbie Lundberg, Editor-in-Chief, CIO. "The executives leading these organizations are smart, inventive and determined -- I offer them my warmest congratulations."

"BT realizes that it is necessary to radically transform our IT operations and technology infrastructure in order to establish the company as a leading global provider of networked IT services and maintain our competitive edge in the telecommunications market," said Al-Noor Ramji, CIO of BT Group and CEO of its IT division, BT Exact. "It is a great pleasure to receive such recognition of our hard work and progress in transforming the way our company is structured and managed."

At the heart of BT's transformation is its GBP 10 billion 21st century network (21CN) initiative. An IP-based, multi-service network, 21CN is the driver for a radical transformation of BT's operations, including lower costs and the ability to more rapidly deploy new services for the expanding digital networked economy. 21CN will enable BT to deliver a new generation of converged services, giving both consumers and professionals more flexible communications services to suit their personal and business needs.

BT Exact is the technology and IT operations business for BT Group. By combining its deep knowledge of change management, IT operations, network design and application development, BT Exact's staff of IT professionals is dedicated to ensuring customer success while providing the technology foundation for BT's transformation into a global networked IT services company.

BT will be presented with the award at the Hotel Del Coronado in San Diego, California, on August 23rd at the conclusion of the seventh annual CIO 100 Symposium and Awards Ceremony.

About the CIO 100

The recipients of this year's CIO 100 award were selected through a three-step process. First, companies filled out an online application form detailing their bold practices in both business and IT. Next, teams of CIO magazine editors and writers reviewed the applications in depth, looking for unique practices and substantial results. Finally, the teams met for a day-long meeting to debate the merits of each nominee and vote on the final 100.

About BT

BT is one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:

--BT Retail, providing a comprehensive range of communications and related services to more than 20m UK consumers and businesses.

--BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband and private circuits.

--BT Global Services, providing networked IT services to meet the needs of multi-site organisations globally. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2005, BT Group's turnover was 18,623 million pound Sterling with profit before goodwill amortization, exceptional items and taxation of 2,085 million pounds.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. For more information, visit www.bt.com/aboutbt.

Further information

For further information in the U.S., please call Eileen Connolly of BT Americas at 908-410-1419 or Dan Album of Sterling Communications at 760-730-1469.

Inquiries may also 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 news releases can be accessed at our web site: http://www.bt.com/newscentre.