Issue of US$1 Billion Fixed Rate Notes 2004

BRITISH TELECOMMUNICATIONS PLC
14 October 1999


ISSUE OF US$1,000 MILLION FIXED RATE NOTES 2004

British Telecommunications plc launched and priced today an
issue of US$1,000 million fixed rate Notes due 2004 ('the
Notes').

Joint bookrunners and joint lead managers are Deutsche Bank
AG London and Merrill Lynch International Limited.

The coupon has been set at 6.75 per cent and the re-offer
price at 99.468 per cent to give an effective yield to
investors of 75 basis points over the gross redemption yield
of the 6 per cent US Treasury stock due August 2004.
Interest will be paid in arrears on 28 October each year.
The Notes will be redeemed at par on 28 October 2004.

Application will be made to the London Stock Exchange for
admission of the Notes to the Official List.


Enquiries:

British Telecommunications    
plc                           0171 356 6588
Andrew Longden, Group
Treasurer
Corporate News Room           0171 356 5369

Deutsche Bank AG London       
Eamonn McConnell              0171 545 4023

Merrill Lynch International   
Limited                       0171 867 3966
Paul Richards