Change to Board of Directors

British Telecommunications PLC 7 April 2000 British Telecommunications plc Not for release, publication or distribution in or into Canada, Australia or Japan. This announcement is not an extension of a tender offer in Canada, Australia or Japan BT APPOINTS NEW GROUP CHIEF EXECUTIVE FOR IRELAND'S ESAT TELECOM GROUP BT today announced the appointment of a new chief executive for the Republic of Ireland's Esat Telecom Group, which it is buying for £1.5 billion. Neil Parkinson, currently chief financial officer with Esat Telecom Group, is to take up the role of group CEO from Denis O'Brien, who is at present both chief executive and chairman. Mr O'Brien will continue his involvement in the capacity of non- executive chairman. Sir Peter Bonfield, chief executive of BT, in congratulating Neil on his appointment said: 'I look forward to working with Neil closely to further enhance BT's position in Ireland. Neil has a wealth of experience and is very well-respected and admired by employees and colleagues.' BT also confirmed that Barry Maloney will continue as chief executive officer of Esat Digifone, with other senior appointments to be made in due course. Sir Peter said: ' I am delighted that Barry will continue in his role with Esat Digifone. The success of the company to date speaks for itself and we are delighted that he has re-committed himself to the operation.' Denis O'Brien said: 'I am delighted by Neil's new appointment as he has been a very valuable asset in the development of the Esat Group over the last three and a half years. I know that Neil will grow the business with the prime objective of ensuring it achieves pole position in the Irish communications market.' BT today also announced that the Esat group will be restructured in three business lines covering: the mobile sector; the fixed line market and corporate Internet; and the consumer Internet market. This is intended to maximise the range of services offered to customers. BT's acquisition of the remaining 50 per cent of telecommunications operator Ocean is currently subject to the approval of the Irish authorities. Sir Peter said: ' Along with its current Irish operation, Ocean, the purchase of Esat provides further expansion in the fast-developing Irish telecommunications market. It will bring strong benefits to customers through increased competition and an enhanced range of telecommunications products.' Enquiries: BT 44 (0) 20 7356 5369 Jon Salmon N M Rothschild & Sons Limited 44 (0) 207 280 5000 Nigel Higgins Tony Allen Matthew Metcalfe The Offer is not being made, directly or indirectly, in or into, or by use of the mails or any other means or instrumentality (including, without limitation, facsimile transmission, telex or telephone) of domestic or foreign commerce of, or any facilities of a securities exchange of, and may not be accepted in or from, or by any such use, means, instrumentality or facilities of, Canada, Australia or Japan. Accordingly, none of this Press Announcement, the Offer to Purchase or the Acceptance Documents are being, and they must not be, mailed or otherwise distributed or sent in, into or from Canada, Australia or Japan. The Offer may not be accepted by any means from within Canada, Australia or Japan and doing so may render invalid any purported acceptance of the Offer. Persons receiving this Press Announcement and/or such documents (including, without limitation, custodians, nominees and trustees) must not distribute or send them in, into or from Canada, Australia or Japan or use such mails or any such means, instrumentality or facility for any purpose directly or indirectly in connection with the Offer, and so doing may invalidate any purported acceptance of the Offer. The Loan Note Alternative is not being offered in Australia, Canada, Japan, the United States, or other jurisdictions where it would be unlawful to do so. The Loan Notes have not been, and will not be, registered under the Securities Act or under any relevant securities laws of any state or other jurisdiction of Australia, Canada, Japan or the United States and may not be offered, sold, resold, delivered or transferred, directly or indirectly, in or into Australia, Canada, Japan or the United States or other jurisdictions where it would be unlawful to do so, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable requirements of such jurisdictions. This Press Announcement does not constitute an offer to sell or the solicitation of an offer to buy Loan Notes in Australia, Canada, Japan or the United States or in any other jurisdiction in which such an offer or sale is unlawful. The Directors of BT Hawthorn accept responsibility for the information contained in this Press Announcement. To the best of the knowledge and belief of the Directors of BT Hawthorn (who have taken all reasonable care to ensure that such is the case) the information contained in this Press Announcement is in accordance with the facts and does not omit anything likely to affect the import of such information. N M Rothschild & Sons Limited, which is regulated in the United Kingdom by The Securities and Futures Authority Limited, is acting exclusively for British Telecommunications plc and BT Hawthorn and no-one else in connection with the Offer and will not be responsible to anyone other than British Telecommunications plc and BT Hawthorn for providing the protections afforded to customers of N M Rothschild & Sons, or for giving advice in relation to the Offer. Capitalised terms used but not defined herein have the meanings ascribed to such terms in the Offer to Purchase.

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