Completion of sale of Clear

BT Group PLC
12 December 2001

NR0182                              December 12, 2001



                  BT COMPLETES SALE OF CLEAR COMMUNICATIONS

                              FOR NZ$435 MILLION

BT today announced the completion of the sale of Clear Communications, its
wholly owned subsidiary in New Zealand, to TelstraSaturn, an associate company
of the Telstra Corporation, for NZ$435 million (£126 million) in cash.

This follows clearance from the New Zealand Commerce Commission and Overseas
Investment Commission.

The proceeds from the sale are being used to reduce BT's net debt which stood
at £16.5 billion at the end of September, 2001 having been reduced from a peak
figure of £27.9 billion at March 31, 2001. The Board now expects net debt to
be between £15 billion and £17 billion for BT Group by March 31, 2002.

Sir Peter Bonfield, CEO of BT said: 'The completion of this asset sale is
another important step forward in our debt-reduction plan.'

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Note to editors:

BT first acquired a 25 per cent stake in Clear Communications in March 1996,
and assumed full ownership of the company in June 1999 when it acquired the
shares of the other three existing shareholders - MCI Worldcom, TVNZ and Todd
Corporation

CLEAR is New Zealand's second largest information communications supplier and
the country's second-largest Internet Service Provider. The rollout of
broadband, e-business, wireless access, mobile services, convergent solutions
and Internet solutions is CLEAR's focus.

CLEAR has rolled out advanced networks, including broadband and business
access for small and medium businesses in more than 30 CBD and regional New
Zealand centres.

TelstraSaturn is committed to providing superior telecommunications and
entertainment services that add value to customers, employees and
shareholders. It is a convergent company that offers entertainment,
communication and information, offering voice, data, mobile, Internet and
cable television services to a mix of business and residential customers in
New Zealand. It was formed in February 2000 through the 50/50 merger of
Telstra NZ and Austar's Saturn Ltd.

Telstra Corporation is Australia's premier communications carrier and a
world-class fully integrated full-service provider. Telstra has more than 10
million household, business and wholesale customers. It is Australia's leading
ISP, has the most highly accessed family of Internet portals and sites and
provides entertainment and multimedia content over its broadband network and
through its Pay-TV joint venture.

It has business operations in North America, UK/Europe and the Asia-Pacific
region.

Austar United (Australian Stock Exchange 'AUN') is one of the largest and
fastest growing broadband communications companies serving Australia and New
Zealand. AUSTAR Communications is the second largest pay TV operator in
Australia, and the largest providing, principally, digital DTH services, with
over 432,000 pay TV, 80,000 internet and 8,600 mobile phone subscribers.
Austar is one of the first companies in Australasia to offer broadband
Internet access and was the first to launch interactive television. Austar
United is approximately 81% owned by UnitedGlobalCom.

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