Determination of tender offer for Senior Notes

September 23, 2002

  ESAT GROUP LIMITED ANNOUNCES THE DETERMINATION OF THE TENDER OFFER PURCHASE  
                  PRICE FOR ITS 11 7/8% SENIOR NOTES DUE 2009                  

BT Group today announced that Esat Group Limited (formerly known as Esat
Telecom Group PLC and Esat Holdings Limited) ("Esat") - a wholly owned
subsidiary - has determined the total purchase price per Euro 1,000 principal
amount of the 11 7/8% Senior Notes (the "Notes") due 2009 under the terms of
Esat's previously announced tender offer and consent solicitation.

The total purchase price to be paid for each validly tendered and consented
Note is Euro 1,213.99 per Euro 1,000 principal amount of Notes, plus accrued
and unpaid interest up to, but not including, the payment date, which includes
a consent payment of Euro 25 per Euro 1,000 principal amount of Notes. As
previously announced, the total purchase price will be paid only for Notes that
were validly tendered before 5:00 p.m., London time, on September 9, 2002, and
will only be paid if the Notes are accepted for payment by Esat pursuant to the
terms of the tender offer for the Notes, as set forth in the Offer to Purchase
and Consent Solicitation dated August 23, 2002. Notes tendered after 5:00 p.m.,
London time, on September 9, 2002 will not be entitled to receive the consent
payment.

The total consideration for the Notes was based upon a fixed spread of 75 basis
points over the yield on the 4.000% German Bundesschatzanweisungen due June 25,
2004, as of 2:00 p.m., London time, on September 19, 2002.

Holders who have not yet tendered their Notes may do so at any time prior to
the expiration of the tender offer and consent solicitation, which is 5:00
p.m., London time, on September 23, 2002 unless extended. Payment for the Notes
and consent payments, if applicable, are expected to be made on September 26,
2002.

The tender offer is conditioned upon, among other things, the satisfaction of
certain terms and conditions described in the Offer to Purchase and Consent
Solicitation Statement. Complete terms of the tender offer and consent
solicitation are set forth in the Offer to Purchase and Consent Solicitation
Statement.

Notes for Editors:

Salomon Smith Barney is the dealer manager and HSBC Bank plc is the tender
agent for the tender offer and consent solicitation. Requests for documentation
should be directed to HSBC Bank plc ( [phone], Fax. No.: [phone]
8932). Questions regarding the transaction should be directed to Salomon Smith
Barney in New York [phone] or [phone] (toll free) or in London
[phone].

This announcement is not an offer to purchase, a solicitation of an offer to
purchase or a solicitation of consent with respect to any Notes. The tender
offer and consent solicitation are being made solely by the Offer to Purchase
and Consent Solicitation Statement dated August 23, 2002, copies of which are
available from the tender agent.

 Enquiries 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/    
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