Acquisition of Lynx

BT Group PLC
01 October 2007



October 1, 2007


                            BT BUYS LYNX TECHNOLOGY

                   Purchase of a second leading UK IT company



BT announced today it has acquired Lynx Technology, one of the UK's foremost
suppliers of IT services.

     The acquisition of Lynx Technology follows the purchase of Basilica
Computing that BT announced in August and further enhances BT Business'
capability to create and deliver complete IT solutions for small and
medium-sized enterprises (SMEs) in the UK.

     Founded in 1973, Lynx Technology specialises in consulting, technology and
outsourcing. It is a Microsoft, Cisco, Symantec and Surf Control Gold Partner,
and an HP Business Partner. It has more than 500 employees, including 200 field
engineers, 50 consultants and 100 service, support and logistics staff.  Its
headquarters are in Chesterfield, Derbyshire.

     Bill Murphy, managing director of BT Business, said: "Lynx Technology is a
very impressive IT services business, with a proven track record of
understanding and meeting the needs of SMEs. Their expertise complements that of
Basilica Computing and combined with our existing operation will enable us to
give our customers genuinely converged communication and IT solutions.

     "Small and medium sized companies need to focus on their core business. Our
customers tell us they want to concentrate on 'doing what they do best'. We make
that possible by taking care of their entire communications and IT; linking
their customers, suppliers and partners and enabling communication,
collaboration and commerce."

     Paul Edgeley, managing director, Lynx Technology, said: "This is a very
exciting time for everyone at Lynx Technology. We're delighted with the
opportunities this transaction will deliver to the strong platform that we have
developed. And we're confident that this will prove to be extremely beneficial
for our customers, employees and our business partners."

     Lynx Technology generated revenues of £47 million and had audited gross
assets of £15.6 million for the year ended September 30, 2006.


Inquiries 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 BT Group news releases can be accessed at our web site: www.bt.com/
newscentre


Notes to editors


About BT Business


   •BT Business is a division within BT Retail that focuses entirely on the
    communications needs of SMEs in the UK. It serves and supports more than 1.5
    million small and medium sized companies across the UK. It provides these
    companies with voice, broadband and IT services enabling them to sell their
    services to customers around the globe.
   •BT Business' revenue as at March 31, 2007 was £2,353 million. This
    represents 27 per cent of BT Retail's revenue.
   •BT Business is the UK's number one business broadband provider with 45
    per cent of the DSL market and has a 40 per cent share of the voice market.


Lynx Technology web site


   •For more information about Lynx Technology visit: www.lynxtec.com


About BT


BT is one of the world's leading providers of communications solutions and
services operating in 170 countries.  Its principal activities include networked
IT services; local, national and international telecommunications services;
higher-value broadband and internet products and services and converged fixed/
mobile products and services.  BT consists principally of four lines of
business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended March 31, 2007, BT Group plc's revenue was £20,223 million
with profit before taxation of £2,484 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and
encompasses virtually all businesses and assets of the BT Group.  BT Group plc
is listed on stock exchanges in London and New York.


For more information, visit www.bt.com/aboutbt




                      This information is provided by RNS
            The company news service from the London Stock Exchange