Subsidiary's Acquisition

British Telecommunications PLC
7 March 2000

Yellow Book USA Acquires SunShine Pages Directories in North Palm
Beach and Martin St. Lucie Areas
*    Company Expands North of Existing Markets to Offer User-
Friendly Features to Consumers, High Usage and Tremendous Value to
Businesses-


Rockville Centre, New York (March 7, 2000) - Yellow Book USA, 
the oldest and largest competitive yellow pages publisher
in the United States and a wholly-owned US subsidiary
of British Telecommunications plc, today announced it has 
acquired four yellow pages directories from The SunShine
Pages in North Palm Beach and the Martin St. Lucie areas.  
The acquisition of these directories, which are distributed 
to more than 300,000 residences and businesses, strategically 
bolsters Yellow Book's position in the Florida market.

Joe Walsh, Chairman and Chief Executive Officer of Yellow Book
USA, states, 'The Boca Raton and West Palm areas have already 
realized the power and value that Yellow Book directories bring 
to the market. This acquisition reinforces our commitment to 
Florida, as Yellow Book plans to offer the features, innovations 
and customer attention that sets Yellow Book apart from the phone 
company directory.' 

He adds, 'We have been serving Florida markets for more than a 
decade and now provide higher usage than the phone company in 
communities throughout South Florida.  When businesses 
consider that the cost to advertise in Yellow Book is about half
of Bell South, the value we deliver to businesses becomes 
extremely clear.' 

The new directories, to be re-branded as Yellow Book.com, will 
include comprehensive yellow pages, white pages, a community 
information section, restaurant menus, area maps and coupons, 
all in a distinct, easy-to-use size with easy-to-read large print.

According to Linda Terrizzi, Assistant Vice-President, Sales of
Yellow Book's Florida Division, 'Yellow Book has garnered tremendous
usage in the markets we serve throughout Palm Beach and Broward 
Counties.  The acquisition of these four SunShine Pages directories 
will allow Yellow Book to leverage its proven value and features 
to gain yellow pages lookups in the North Palm Beach and 
Martin St.Lucie markets and create exciting opportunities for South 
Florida businesses, bringing the high quality Yellow Book product 
to even more Florida consumers.'

North Palm Beach and Martin St. Lucie area businesses will also
have the opportunity to promote their business on Yellow Book's 
companion online product - 
www.yellowbook.com   - 
to broaden their reach even further.

Yellow Book was established in 1930.  Since 1997, Yellow Book USA
has made a number of strategic acquisitions including Sprint 
Publishing's Midwest Operations, Dixie Directory Company, Inc., 
Yellow Page One, Inc., Directory Publishers, Inc., Southern 
Directory Company and R.H. Donnelley's Proprietary Operations.  
In August 1999, Yellow Book USA was acquired by British 
Telecommunications plc, forming a nearly $1 Billion multi-continent
yellow pages organization.  In March 1999, the company announced
plans to enter the $100 million Manhattan yellow pages marketplace 
to end Bell Atlantic's yellow pages monopoly with affordable pricing 
and product innovation.  

Yellow Book USA publishes more than 300 directories with a
circulation of 26 million copies. The company has more than 2000 
employees in 37 offices throughout 17 states. Yellow Book USA 
publishes community directories, wide-area directories, county 
directories, city directories, a Business-to-Business directory 
and college and university directories.

NB: Consideration represents less than one per cent of BT's net
assets.