BT and Swisscom

BT Group PLC
14 November 2007


DC07-560                                                       November 14, 2007


                   BT and Swisscom redefine their partnership


Swisscom and BT are set to redefine their partnership to better respond to the
future needs of their customers. Those who stand to benefit most from the move
are companies in Switzerland requiring global ICT solutions and services.
Swisscom customers will in future be offered services from the global BT
portfolio.

Customers will benefit from a wider range of ICT solutions: as a provider with
roots in Switzerland and strong customer loyalty, Swisscom will ensure national
service provision and thanks to the partnership, will also offer customers
innovative international services from BT, a leading global provider. The
partners will link up their IP networks to further optimise services to the
benefit of Swiss companies with international needs. The partners also intend to
continue their collaboration in the area of global key account customers.

Adrian Schlund, CEO of BT Switzerland, says: "Many of the most dynamic
multinational corporations are based in Switzerland. These companies rely
increasingly on an integrated global ICT infrastructure for their business
operations. BT and Swisscom complement each other very well, enabling both
companies to meet this demand. Our agreement is in the interest of all customers
and ensures optimum service provision. In particular, it ensures that existing
customers of Infonet Switzerland Ltd can enjoy service continuity and the
provision of innovative services in future."

Urs Schaeppi, CEO of Swisscom Solutions, comments: "Everyone wins in this
situation. Swisscom benefits from the worldwide high-speed data networks and the
excellent international standing of its partner BT, while BT gains from the
reputation and strong customer relations of Swisscom in the national market..
But the main beneficiaries of this partnership will be all of our customers with
global communication requirements."

To achieve this, BT will acquire substantially all the assets, contracts, and
employees from Infonet Switzerland Ltd. In a related transaction, BT's existing
10% shareholding in Infonet Switzerland Ltd will be acquired by Swisscom,
following which, Infonet Switzerland Ltd, the existing joint venture between the
two partners, will be effectively wound up. Completion of the agreement will
take place end of November. BT is expected to pay approximately CHF 6.6m in cash
for the operations acquired from Infonet Switzerland Ltd. Swisscom is expected
to purchase BT's stake in Infonet Switzerland for cash consideration of
approximately CHF 0.5m.




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 31 March 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


About Swisscom

With revenue of CHF 8,1 billion in the first three quarters of 2007 and a
workforce of 19 658 full-time employees, the Swisscom Group is Switzerland's
leading telecoms company. Swisscom has a presence throughout Switzerland and
offers a full range of products and services for mobile, landline and IP-based
voice and data communication. Swisscom is active in one of the most attractive
broadband markets in Europe via the Italian provider Fastweb. Swisscom also
offers services for IT infrastructure outsourcing as well as the management of
communications infrastructures.


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7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be
             accessed at our web site: http://www.bt.com/newscentre


Alternatively, journalists outside the UK may call BT Global Services PR on +420
603 483 576



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            The company news service from the London Stock Exchange
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