Joint Venture

British Telecommunications PLC
22 June 2000


            BT AND ANDERSEN CONSULTING TO CREATE
                   HR SOLUTIONS E-VENTURE
                              
BT and Andersen Consulting today announced their intention to

form e-peopleserve, a new venture to provide leading-edge and

increasingly electronically-enabled human resources (e-HR)

services and solutions for large companies.

     The new company aims to serve the growing

market demand for comprehensive HR services from both BT's

and Andersen Consulting's corporate and public sector

clients, as well as meeting the internal HR service needs of

the parent companies.  It is expected that e-peopleserve will

become operational this summer, subject to regulatory

approval. It will concentrate initially on the UK market

before expanding globally.

     Around 1,100 employees from BT Human Resources and Development 

Services will form the basis of the venture. It

is intended that the venture will also provide HR services to

Andersen Consulting in the US. The new company will be 

co-owned on a 50:50 basis by its two parent organisations.

     John Steele, BT's group personnel director, said: 'BT has invested

strongly to bring industry-leading capability to its own delivery of HR

administration which is now very highly regarded.

     

     'By joining Andersen Consulting in the creation of 

e-peopleserve, BT will maximise its return on that investment

and receive an even more effective HR operational service.

It is a very good opportunity for people in our HR Services

activity.'

     David Clinton, managing partner of Andersen Consulting's

e-Human Performance practice, said: 'Combining BT's skills

with those of Andersen Consulting will create an alliance

which deploys the strengths of two world leading

organisations. This joint venture will strengthen our

globally recognised e-commerce credentials and capabilities

through global service offerings to corporate clients.

     'This new venture breaks new ground in the HR services

sector. This is a genuine market-making opportunity and an

exciting proposition for clients among the top global 1,000

companies.'