Chairman signs new contract

BT Group PLC
29 August 2003




                                                   August 29, 2003

                        BT'S CHAIRMAN SIGNS NEW CONTRACT

BT is pleased to announce that its chairman, Sir Christopher Bland, has signed a
new contract which secures his services for the company until the conclusion of
the company's 2007 Annual General Meeting.

     In line with his previous contract, Sir Christopher, 65, who became
chairman on 1 May 2001, will receive a salary of £500,000 per annum. He will, as
before, not be eligible to receive an annual bonus.

The new contract may be terminated by the company or Sir Christopher on twelve
months' notice.

Under the contract, Sir Christopher will be awarded retention shares to the
value of £500,000 which will vest if he is still employed by BT at the end of
the contract in 2007. Apart from this award, he will not be eligible to
participate in any other BT senior executive share or share option plans.

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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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