Transaction in Own Shares

BT Group PLC
05 July 2004


Monday, 5 July 2004

                                  BT GROUP PLC
                           TRANSACTION IN OWN SHARES

BT Group plc announces that on Friday 2 July 2004 it transferred to a
participant in its employees share schemes 11,750 ordinary shares at a price of
183 pence per share. The transferred shares were all formerly held as treasury
shares.

Following the above transfer, BT Group plc holds 60,638,437 ordinary shares as
treasury shares. The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 8,573,990,601.





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