BTG To Commercialize Fundamental Patent Portfolio in Voice-over-Ip Technology.

Business Editors/High Tech Writers

WEST CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Jan. 7, 2003

Company seeks to realize value from large and

growing market in packet-based communications

BTG plc (LSE: BGC), the global technology commercialization company, today announced it has acquired rights to a portfolio of patents and patent applications relating to Video and Voice-over-Internet Protocol (VoIP) technologies developed by Intelligence at Large, Inc. (IAL).

These technologies are incorporated into the various US and international standards for multipoint, packet-based multimedia solutions enabling real-time communications over the Internet.

The newly acquired portfolio covers key functions in audio, video and data transmissions, as well as Internet telephony. In particular, aspects of the portfolio relate to key features specified in H.323, a standard to promote compatibility in videoconference transmissions over packet networks. BTG's entrance into this arena raises prospects for value realization in an already robust and continually growing market. According to the Telecommunications Industry Association (TIA), demand for VoIP will continue to increase as consumers better understand the technology and its uses. As further evidence of this sentiment, Synergy Research Group estimates that the VoIP market grew 21% over the last year despite a marked technology recession.

Anthony V. Lando, BTG's Chief Operating Officer, said, "BTG has strong capabilities and experience commercializing technologies that enable efficient distribution of multimedia, such as data compression and speech coding. We were seeking fundamental patents that define packet-based communications, and we are pleased BTG and IAL are partnering to develop and license packet-based audio and videoconferencing technology."

This family of patents and patent applications arose from IAL's development of BeingThere(TM), a Macintosh(TM)-based videoconferencing product released in the early nineties. In addition, IAL developed a popular OEM-VoIP product called WebTalk(TM) for Quarterdeck Corporation.

Cartright Reed, co-inventor of the VoIP technology and current President of Shipstone Group, IAL's consulting practice, added, "we developed communication technology for the Internet in its infancy, and we are excited to be working with BTG to put our IP portfolio to work. Through BTG, this fundamental portfolio will be licensed on a global basis to VoIP, semiconductor, and communications software companies, in addition to leading telecommunications providers."

About BTG

BTG finds, develops and commercializes emerging technologies in the life and physical sciences. These innovations are protected by a strong portfolio of intellectual property that BTG develops and enhances. BTG then captures the value in these technologies through licensing and venturing activities. From the origins of its business in 1949, BTG has commercialized major innovations such as Magnetic Resonance Imaging (MRI), recombinant factor IX blood-clotting protein, Campath(R) (alemtuzumab) and Multi Level Cell (MLC) memory. BTG is quoted on the London Stock Exchange under the symbol "BGC" and operates from offices in London and Philadelphia, with representation in Tokyo. BTG operates through wholly owned subsidiaries, BTG International Ltd. and BTG International Inc. in the UK and USA respectively. Further information on BTG can be found at www.btgplc.com.

About Intelligence at Large, Inc. and Shipstone Group

Intelligence at Large, Inc., developed fundamental communications technology for the Internet and worked with major companies, including Apple and Quarterdeck, to deliver it to the market. Since 1998, IAL's focus has been on intellectual property development - spinning off consulting and development projects to Shipstone Group.

Shipstone Group works with leading technology companies to profitably manage and integrate "disruptive technologies" into their product lines, or to productize the disruptive technologies that they have developed. The members of Shipstone Group have designed, developed and commercialized products in internet telephony (VoIP), videoconferencing, imaging, wireless, embedded systems, streaming media and other emerging technologies - for customers such as Apple, Microsoft and Xerox. Further information on Shipstone Group can be found at www.shipstone.com.