Transaction in Own Shares

BT Group PLC
01 July 2005


Friday 1 July 2005
                                  BT GROUP PLC

                           TRANSACTION IN OWN SHARES

BT Group plc announces that it has yesterday transferred to participants in its
employees share schemes 11,366 ordinary shares at a price of 199.5 pence. The
transferred shares were all formerly held as treasury shares.

Following the above transfer, BT Group plc holds 139,174,349 ordinary shares as
treasury shares. The total number of ordinary shares in issue (excluding shares
held as treasury shares) is 8,495,454,689.


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