Acquisition

BT Group PLC 7 March 2002 BTopenworld Purchases Europe's Number One Music Site Acquisition of the dotmusic business provides BTopenworld with launch pad to expand its Music Services London - March 6, 2002 BTopenworld has today announced that it has agreed to purchase Europe's most popular music site, dotmusic.com from United Business Media. The deal highlights BTopenworld's commitment to creating the best destination site for music in the UK and follows the successful launch of its classical music subscription service, BTopenworld Classical in January 2002. Following last week's across the board price reductions and the launch of BTopenworld's self-install broadband access product Plug & Go, this latest move highlights BTopenworld's commitment to play its part in providing unrivalled entertainment content via the broadband and narrowband platforms. Combined with its earlier acquisition of UK's number one games site, Games Domain, in November 2001, the deal makes BTopenworld the UK market leader in online music and games services. BTopenworld's Music division will take management of dotmusic operations, including staff and ownership of the relevant domain name www.dotmusic.com, for a purchase price of under £1,000,000 (significantly below the class 3 ratio test). dotmusic.com will continue as a stand-alone website and will be enhanced with broadband content and services. The deal follows recent developments in BTopenworld's music services including an ongoing trial of a mass market music subscription service with OD2, the development of a customised BTopenworld media player with Microsoft and the launch of its classical music download subscription service, BTopenworld Classical. Founded in 1995, dotmusic is already Europe's most popular music site with 1.7 million unique users a month and 16 million page impressions a month (both February 2002). The site features many thousands of pages of content across popular music genres including news, reviews, charts, webcasts, a gig guide and more than 200 video interviews. In addition there is a comprehensive shop where users can buy CDs, DVDs, videos, tickets and ring tones and a community section with webchats, forums and an extensive array of email newsletters. Announcing the deal, BTopenworld's CEO Alison Ritchie said: "Adding dotmusic's exclusive content, extensive user base and strong online music brand name to our already successful music site will ensure we continue to be a leading player in online music service provision. Last week BTopenworld announced major price cuts for our broadband services and with the launch of our easy to use self install product Plug & Go, this deal reiterates our intention to drive and innovate cutting edge content solutions for both the narrowband and broadband platforms." Prior to the acquisition dotmusic and BTopenworld had an association that saw dotmusic providing its music news for the BTopenworld Music site. Mark O'Donoghue, previously dotmusic's managing director and now responsible for all of United Business Media's music and entertainment titles in the UK said "This is great news for the future of dotmusic and its staff, all of whom will transfer. We brought dotmusic back in-house at the Music Group to enhance it as a site and to develop musicweek.com alongside it. This has progressed very well towards a full launch in the near future. Successfully selling a dotcom in the current environment might seem unlikely, but dotmusic has built up a great franchise with 1.7 million consumers and music fans. We are now 100% focused on delivering business information to the UK and international music industry." The deal is due to be completed on April 2, 2002. ***Ends*** For further information please contact Justin Crosby or Chris Wright Kazoo Communications Tel 020 7482 1122 email justin/chris@kazoo.co.uk Notes for Editors About BTopenworld BTopenworld, BT plc's mass-marketing Internet division, is one of the UK's leading Internet service providers delivering broadband and narrowband services to more than 1.6 million business and consumer customers in the UK through www.btopenworld.com. The company offers a wide range of Internet access packages and payment options to satisfy the changing needs of consumer and business customers. For narrowband customers, these range across Pay-as-you-go, BTopenworld for BT surf packages offering unmetered Internet access evenings and weekends, BTopenworld Anytime offering access to the Internet available 24/7 and BTopenworld Connect Anytime, a 24/7 package designed specifically for business customers. BTopenworld's broadband products cover a choice of download speeds, from 500kbps to up to 2Mbps, single or multi-user set-ups for PC or Mac, and static or dynamic IP addresses. BTopenworld also offers many other Internet services to support customer's online experience, including email services, SpeechMail (charged at NationalCall rates), Cyberpatrol, a WAP portal and more. The company also provides virtual ISP services to a network of corporate partners who reach an additional 1.1 million customers. Alison Ritchie is the chief executive officer of BTopenworld . About Dotmusic Launched in August 1995, dotmusic (www.dotmusic.com) is the UK's and Europe's most popular music web site with 1.7 million unique users and 16 million page impressions a month (ABCe audited February 2002). dotmusic offers up-to-date news and reviews on major artists, with sound clips, exclusive events and interviews. Music fans can surf the comprehensive artist information and buy CDs, gig tickets and other music goods. dotmusic was the first UK music site to be launched by a traditional music magazine publisher. Originally targeted at Music Week's traditional music industry audience, in December 1996 the site expanded and repositioned itself to embrace its growing consumer audience, providing a new 'behind the scenes' angle on music and capitalising on Music Week's exclusive access to music information. dotmusic is now the most comprehensive UK music service on the Internet. Rather than focusing on one genre of music, dotmusic covers a broad range of acts from Will Young to the Chemical Brothers to Marilyn Manson, all under the strap line of "What's Your Sound". This information is provided by RNS The company news service from the London Stock Exchange

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