New Joint Venture Internet Venture - BT LookSmart

British Telecommunications PLC
7 March 2000


BT AND LOOKSMART ANNOUNCE NEW INTERNET AGREEMENTS AROUND THE
                            WORLD
                              
                UK joins global Internet deal

                              
BT and LookSmart - a leading US-based on-line navigation

company - today announced that their global Internet joint

venture has signed a number of major distribution agreements

and is extending its coverage to the UK.

     The joint venture, called BT LookSmart, was set up last

November to create and distribute Internet portal services

throughout continental Europe and Asia. The venture will now

also operate in the UK.

     Since its formation, BT LookSmart has signed a number

of syndication deals in the UK. These include: Tesco Net, a

free ISP from the UK's leading grocery retailer; Channel 4

Television, to develop a vertical lifestyle portal; BEME, a

new women's site; and Zoom, a popular ISP and shopping

portal. All these deals are announced for the first time

today.

     In addition, BT LookSmart today also announced that a

number of BT's global alliance partners will use the new

venture's services for their own ISPs. Clear (New Zealand),

Mantra (India), Maxis (Malaysia), Infinito (Italy) and Ocean

(Ireland) will now offer their customers country-specific

web navigation and content to millions of Internet users.

     As well as offering the business market syndicated web

directories and content services through ISPs and other

partners, BT LookSmart will provide Internet communications

and e-commerce services to consumers directly through its

own web sites.

     The venture will leverage LookSmart's strength in the

field of search infrastructure, which enables it to build

country specific Internet search solutions throughout Europe

and Asia. The joint venture draws on the core assets and

established expertise of both LookSmart and BT.

     Evan Thornley, chief executive officer of LookSmart,

said: 'The BT LookSmart joint venture is a key part of our

strategy to aggressively leverage and expand our successful

US search infrastructure business model into international

markets. We are delighted that the joint venture will now

provide coverage of the United Kingdom and its alliance

partners. With BT's strong worldwide Internet presence based

on its own ISP and significant interests, this arrangement

adds extensive reach to our rapidly growing distribution

network.'

     Vernon Irvin, senior vice president of BT Worldwide,

said: 'It is very exciting to be able to hit the ground

running so quickly.


     'The addition of the UK further endorses and enhances

the power of our venture as well as building on our strategy

to become the leading consumer Internet service provider and

portal. By combining BT's global Internet strengths with

LookSmart's leadership in search and navigation solutions,

we have established a very powerful partnership.'