Technical interest adjustment

BT Group PLC
17 December 2001

BT Group plc

BT DISCRETIONARY EMPLOYEE TRUSTS

Adjustment to technical share interest of Directors

BT Group plc advises that, on 14 December 2001, Ilford Trustees (Jersey)
Limited (the Trustee), as Trustee of discretionary employee trusts established
by British Telecommunications plc (BT)) (the Trusts) acquired 1,195,000
ordinary shares in BT Group plc (BT Group Shares) at an average price of
257.5318 pence per share.

These BT Group Shares were purchased by the Trustee with the proceeds of sale
of ordinary shares in mmO2 plc in connection with arrangements to acquire
sufficient BT Group Shares to satisfy entitlements of participants in BT's
executive award plans as and when they vest. These awards require adjustment
by reason of the reconstruction of BT to form separately listed companies, BT
Group plc and mmO2 plc (which was completed on 19 November 2001), so that the
awards relate solely to the shares of each participant's new parent company.

Following these transactions, the Trustee holds 24,799,699 BT Group Shares, as
well as 6,455,291 ordinary shares in mmO2 plc. The Executive Directors of BT
Group plc (Sir Christopher Bland, Sir Peter Bonfield, Philip Hampton, Andy
Green, Pierre Danon and Paul Reynolds) are for Companies Act 1985 purposes
treated as interested in all of these BT Group Shares. However, it is not
anticipated that they will receive from the Trustee a greater number of BT
Group Shares than that to which their adjusted share award relates. The
adjusted awards will be determined when the averaging period expires on 14
December 2001, and will be announced at that time.

Ends