BT investor briefing details

BT Group PLC
13 June 2002



June 13, 2002

                     BT HOLDS "INSIGHT INTO BT" CONFERENCE


BT is today holding a conference for investors aimed at giving a greater level
of detail regarding the operation of its businesses.

The event starts at 9:00am with an overview presented by Group finance
director, Ian Livingston. This will be followed by presentations by the chief
executive officers of BT Retail, BT Ignite, BTopenworld, and BT Wholesale. The
day will close with a summary by BT Group chief executive, Ben Verwaayen.

Ian Livingston, said: "Today is all about our commitment to providing a greater
depth of understanding of the factors that contribute to our financial
performance. BT is a complex business operating in a complex sector and
therefore it is important to ensure that there is a good understanding of the
underlying issues and opportunities."

The financial information disclosed will reflect that which has already
been publicly disclosed by BT both at the time of the publication of its fourth
quarter results on May 16, and in its recently published annual report and
accounts. There will, however, be some further detailed information provided
which underpins the overall Group targets disclosed at the strategy presentation
on April 8.

The Group targets for the plan period from 2001/02 to 2004/05 include:

  • Grow profitable organic revenue at a CAGR of 6-8 per cent.
  • Drive positive free cash flow to £1bn - £1.5bn by 2004/05.
  • Grow EPS by at least a CAGR of 25 per cent.

BT Retail

BT Retail will today announce it is targeting revenue to grow at a compound
annual growth rate (CAGR) of five per cent over the three years to March 2005.
The underlying revenue targets remain unchanged from that previously disclosed,
however the shorter plan period and new trading models with BT Ignite and
BTopenworld increase the headline CAGR to five per cent from three per cent. In
this period, gross margin decline is targeted to within one percentage point per
annum.

These targets, combined with a programme to achieve £800m of cost efficiencies
in the core business from 2000/01 to 2004/05, are designed to grow BT Retail
EBIT and operating free cash flow at a CAGR of nine per cent from 2001/02 to
2004/05.



BT Ignite

BT Ignite will reconfirm that revenue in continuing businesses is targeted
to grow at a CAGR of 15 per cent over the three years to March 2005. Capital
expenditure in the combined BT Ignite/Concert business is targeted not to exceed
£600m per annum.

As previously revealed, all European Connectivity Businesses are targeted to be
EBITDA break-even on a monthly run rate basis by March 2003 with the ex-Concert
business expected to follow in December 2003. Overall, EBITDA margin is targeted
to trend towards 15 per cent in the medium term.

BTopenworld

BTopenworld will confirm that it is aiming to grow revenue at a CAGR of 35
per cent in the period to March 2005. It aims to reach EBITDA break-even for
narrowband during this financial year and broadband during the following year.

BT Wholesale

BT Wholesale will reconfirm its target for external revenue growth of 5-7 per
cent CAGR over the period to the end of March 2005. Cash cost savings of £200m
are targeted for the current year with a total of £650m targeted by March 2005.

All presentations are being webcast live, the details of which, along with the
slides will be available at the web sites listed below.

                          ---------------------------




Notes to editors:


                Webcast/slides                              Audio Call                          Rebroadcast
                                                              Number                               Number
                                                             Password                            PIN Number

                                                        0800 028 5334 (UK)
                                                                                            [phone]
http://www.btplc.com/retail                              [phone]
                                                                                                  738414#
at 9.00am (BST)                                              (Non UK)

                                                             "Retail"



                                                        0800 028 5334 (UK)
                                                                                            [phone]
http://www.btplc.com/Ignite                              [phone]
                                                                                                  253850#
at 11.00am (BST)                                             (Non UK)

                                                             "Ignite"



http://www.btplc.com/openworld                          0800 028 5334 (UK)
                                                                                            [phone]
at 1.30pm (BST)                                          [phone]
                                                                                                  548483#
                                                             (Non UK)

                                                           "openworld"




http://www.btplc.com/wholesale                          0800 028 5334 (UK)                  [phone]

at 2.35pm (BST)                                          [phone]                         510562#

                                                             (Non UK)

                                                           "wholesale"







Forward-looking statements - caution advised

Certain statements in this news release are forward-looking and are made in
reliance on the safe harbour provisions of the US Private Securities Litigation
Reform Act of 1995. These statements include, without limitation, those
concerning: revenue growth, margins, capital expenditure, earnings per share and
free cash-flow targets for BT and its lines of business; BT Retail and BT
Wholesale cost efficiency and cash saving targets; and break-even targets for BT
Ignite's European Connectivity and ex-Concert businesses and for BTopenworld's
narrowband and broadband businesses.

Although BT Group believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurance that these
expectations will prove to have been correct. Because these statements involve
risks and uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements.

Factors that could cause differences between actual results and those implied by
the forward-looking statements include, but are not limited to: material adverse
changes in economic conditions in the markets served by BT and its lines of
business; future regulatory actions and conditions in BT's operating areas,
including competition from others in communications markets; selection by BT and
its lines of business of the appropriate trading and marketing models for its
products and services; technological innovations, including the cost of
developing new products and the need to increase expenditures for improving the
quality of service; the anticipated benefits and advantages of new technologies
not being realised; developments in the convergence of technologies; prolonged
adverse weather conditions resulting in a material increase in overtime, staff
or other costs; the anticipated benefits and advantages of new technologies,
products and services, including broadband, not being realised; the timing of
entry and profitability of BT and its lines of business in certain communication
markets; significant changes in market shares for BT and its principal products
and services; fluctuations in foreign currency exchange rates and interest
rates; general financial market conditions affecting BT's performance; factors
not within BT's control which may affect the ability of BT's lines of business
to reduce costs, improve quality and maximise return on capital employed; and
the reintegration of Concert.




            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 news releases can be accessed at our web site:

                               www.btplc.com/mediacentre








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