Borland Software Solution Selected by BT to Transform Systems Engineering; Borland Software Implemented for BT to Reduce Cost and Complexity of Information Technology.

SCOTTS VALLEY, Calif. & LONDON -- Borland Software Corporation (Nasdaq:BORL) announced today that Borland's Application Lifecycle Management (ALM) solution has been selected by BT Group to help reduce the time and investment required to deliver its IT projects. BT's technology and IT operations division, BT Exact, is leading the implementation of Borland's solution across the Group.

Borland's ALM solution will underpin BT's Systems Engineering Programme (SEP), which was set up by BT Exact to develop a single design and delivery methodology for all future IT projects across BT Group, by providing a single environment for managing software development. Currently, BT's internal and external software architects, engineers, analysts and Systems Integrators (SIs) use a range of tools to manage the different stages of the development process.

Steve Day, CIO of BT Exact, said: "It is essential that BT is geared to deliver new services faster and at a lower cost than our rivals. Standardizing systems will take the management of our IT resources to the next level and will ensure that, across the board, we're working from one blueprint.

"Enterprise engineering across BT's IT infrastructure can be logistically challenging. The implementation of Borland's suite of lifecycle products will help by optimizing the ability of different teams to collaborate and co-operate more effectively. In turn this will reduce time-to-market and cost of development, keeping us ahead of the game."

Over the next 12 months, BT Exact will implement Borland's ALM suite of products. Initially, it is deploying user licenses encompassing Borland CaliberRM for project definition and requirements management, Borland Together ControlCenter for modeling and collaboration, Borland StarTeam for source control and change management, Borland Optimizeit for performance tuning, Borland JBuilder for Java development, Borland C++Builder for C++ development and Borland C# Builder for .NET development.

CaliberRM mitigates against the risk of failure, improves software quality and speeds time-to-market by allowing teams to work dynamically on requirements. It is designed to improve communication between BT's business analysts and developers by providing a means by which analysts can clearly define and track requirements.

BT is also creating a single repository for all its designs, based on StarTeam, that will promote re-use and therefore help reduce the potential for duplication of effort. The repository incorporates Together ControlCenter -- an agile modeling development platform. Because Together ControlCenter uses a standard Unified Modeling Language (UML), all BT's designers will use a common notation when building product models. This will not only reduce scope for mis-interpretation, but also allow for the re-use of standard design components.

"Given the central strategic importance of the Systems Engineering Programme to BT, its decision to standardize on Borland technology to underpin future software projects is a powerful testimony to our Application Lifecycle Management (ALM) solution. We look forward to working closely with BT over the coming months to ensure it maximizes the business benefits that will flow from the creation of a common development environment covering every stage of the application lifecycle," said Chris Purrington, managing director of Borland UK.

About Borland

Borland Software Corporation (Nasdaq:BORL) is a world leader in platform independent software development and deployment solutions that are designed to accelerate the entire application development lifecycle. By connecting managers, testers, designers, developers, and implementers in real time, Borland enables enterprises worldwide to define and sustain their competitive advantage. For more information, visit http://www.borland.com or the Borland Developer Network at http://bdn.borland.com.

All Borland brands and products are trademarks or registered trademarks of Borland Software Corporation in the United States and other countries. All other marks are the property of their respective owners.

About BT

BT Group plc is the listed holding company for an integrated group of businesses providing voice and data services in the UK and overseas, particularly in Europe, but also in the Americas and the Asia Pacific region. British Telecommunications plc, a wholly-owned subsidiary of BT Group plc, holds virtually all businesses and assets of the BT group.

BT is one of Europe's leading providers of telecommunications services. Its principal activities include local, national and international telecommunications services, higher-value broadband and internet products and services, and IT solutions. In the UK, BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other licensed operators.

BT consists principally of three lines of business:

--BT Retail, serving businesses and residential customers and including BT Openworld, one of the UK's leading ISPs.

--BT Wholesale, providing network services and solutions within the UK, including ADSL, conveyance, transit, bulk delivery of private circuits, frame relay and ISDN connections.

--BT Global Services, BT's managed services and solutions provider, serving multi-site organizations worldwide. Its core target market is the top 10,000 global multi-site organizations with European operations.

There are a number of other businesses within the BT group, including BT Exact, an internationally renowned centre of excellence in IT and networking technologies. It is also BT's technology and research and development business.

In the year ended 31 March 2004, BT's turnover was GBP 18,519 million with profit before goodwill amortization, exceptional items and taxation of GBP 2,016 million.

For more information, visit www.bt.com.

Safe Harbor Statement

This release contains "forward-looking statements" as defined under the U.S. Securities Laws, including the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created by such laws. Forward-looking statements may relate to, but are not limited to, the nature and the timing of British Telecom's implementation of Borland's ALM products, the expected benefits to Borland customers from certain features of Borland's products, or the expected benefits (including cost savings) to be derived by British Telecom from its use of Borland's ALM products. Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially. Factors that could cause actual events or results to differ materially include, among others, the following: the ability to integrate Borland's ALM solutions with British Telecom's systems and potential software errors in Borland's products. These and other risks may be detailed from time to time in Borland periodic reports filed with the U.S. Securities and Exchange Commission, including, but not limited to, its latest Annual Report on Form 10-K and its latest Quarterly Report on Form 10-Q, copies of which may be obtained from www.sec.gov. Borland is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.