BT buys dabs.com

BT Group PLC
28 April 2006





DC06-203                                                         April 28, 2006


                                BT BUYS DABS.COM

   Purchase of leading internet retailer will boost online sales and service


BT announced today it has acquired dabs.com plc, one of the UK's leading
internet retailers of IT and technology products.

The move is part of BT's strategy to strengthen its online sales and service
capabilities, particularly for small and medium-sized business and consumer
products.

To complement Dabs' broad base of IT and technology products, BT will offer its
full range of products and support services online - enhancing its position as a
leading retailer of converged IT and communications products and services.

Established in 1990 and employing more than 200 people, dabs.com processes about
75,000 customer orders each month and offers more than 15,000 products from
leading IT manufacturers.

Bolton based Dabs has around a million consumer and business customers across
the UK, as well as a small operation in France. In the year ended March 31,
2005, the company's revenues were £180 million with gross assets valued at
£42million.

Ian Livingston, chief executive of BT Retail, said: "Dabs is a dotcom success
story and one of the best companies in its field.

"dabs.com's outstanding expertise will boost BT's online power to sell
innovative, value for money, communication and converged IT products and offer
great service to a wide range of customers.

"This purchase strengthens our online IT and digital products sales and service
presence for small and medium-sized businesses as well as for consumer
customers."

Jonathan Wall, marketing director at dabs.com, said: "This is a very exciting
time. We are delighted with this development and we're confident that this will
prove to be rewarding to both our business partners and our customers.

"The combination of our expertise in online retailing together with BT's brand
and product and service heritage offers tremendous opportunities."

The dabs.com business now becomes a wholly owned subsidiary of BT.





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 Dabs


dabs.com is one of the UK's most successful online IT retailers, with
significant growth over the last five years; it represents an exclusive
collective of online businesses that are both proven and profitable.


Growing from its roots 18 years ago as the traditional mail order reseller Dabs
Direct, the Dabs business model has evolved significantly during recent years in
line with a drive to enhance the customer's online buying experience through the
exploitation of advancements in digital technology. The dabs.com web site offers
around 15,000 products to its more than one million registered online customers
across the UK.


Dabs has won many high profile awards for both its online retailing and business
performance including Best Online Retailer in the 2005 What Laptop Awards.


About BT


BT is one of the world's leading providers of communications solutions and
services operating in more than 160 Countries. Its principal activities include
networked IT services, local, national and international telecommunications
services, and higher-value broadband and internet 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, 2005, BT Group's revenue was £18,623 million with
profit before taxation of £2,354 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