Disposal

British Telecommunications PLC
26 April 2001

NR0116 April 26 2001.



BTopenworld and United Business Media sell LineOne to Tiscali



British Telecommunications plc's mass market internet division BTopenworld and
United Business Media plc today announced that they have agreed the immediate
and unconditional sale of LineOne, their jointly-owned portal and Internet
Service Provider (ISP), to Tiscali S.p.A for a consideration of Euros 100
million (£63 million).

The consideration comprises Euros 20 million in cash and approximately 5.4
million Tiscali shares. The disposal will have a negligible effect on both
United Business Media and BT.

On 30th November 2000, it was announced that both United and BT were seeking a
new owner for LineOne. United's decision to sell LineOne followed its strategy
to focus on growing its core market information assets and to exit its
business-to-consumer media operations. United has been successful in achieving
its strategic transformation and this sale represents the recovery of United's
investment in LineOne.

BTopenworld has sold its holding as part of a programme to drive shareholder
value by focusing on BTopenworld Branded Internet Services via BTinternet, the
UK's number two ISP, and its broadband service which continues to grow
strongly.

In its last full financial year to 30th June 2000, LineOne had revenues of £
12.0 million and operating losses of £12.1 million.

The acquisition of LineOne gives Tiscali a leading presence in the
strategically important UK market and strengthens its overall position as the
second largest ISP in Europe.

Andy Green, CEO of BTopenworld said: 'We are satisfied with the outcome of
this deal which will allow us to focus our financial and operational resources
on our core BTopenworld Branded Internet Services, and to maximise value for
shareholders from these. BT Internet has had particular success in attracting
higher value customers paying monthly subscriptions for unmetered services,
which now account for 50% as at December 2000 of the BT Internet customer
base.'

Malcolm Wall, United's Chief Operating Officer said: 'We have helped jointly
build LineOne into one of the leading ISPs and portals in the UK. I am sure
that with this acquisition both Tiscali and LineOne will go from
strength-to-strength and our best wishes and thanks go to everyone at LineOne
for building such an excellent business.'

                                    -Ends-






For further information please contact:

Media

Tony Henderson               BTopenworld               020 7469 2363

                                                       07801 977338

Nigel Main                United Business Media        020 7579 4060

Angus Maitland           The Maitland Consultancy      020 7379 5151

Analysts

Michael Waring           United Business Media         020 7921 5031

Merrill Lynch International acted as financial advisor, and Allen & Overy as
legal advisor, to both United and BT on this transaction.