Convergence of Communications and IT drives growth for global service provider

    NEW YORK, May 24 /PRNewswire-FirstCall/ -- BT(1) (NYSE: BTY), a leading
provider of information and communications technology (ICT) solutions, today
announced plans to continue its investment in the Americas and the next phase
of its strategy to grow its business in the region.
    The company's average double-digit growth in the Americas during the last
two years was attained through significant global contract wins and an
expansion of its MPLS footprint to support customer demand.  BT's ambition is
to further strengthen its leadership position as a provider of network-centric
ICT solutions to multinational customers.
    To achieve this, BT has undertaken a three-year transformation plan which
will position the company to win and successfully implement large-scale ICT
services contracts.  The company now aims to significantly accelerate its rate
of growth in the Americas over the next three years.  This is a key part of
its strategy to invest in its international capabilities to attain additional
profitable ICT growth in the Americas.
    "In a recent report(2), The Yankee Group recognized that BT has cemented
its credibility as an international outsourcing partner," said Chuck Pol,
president and chief operating officer, BT Americas, "and we are committed to
delivering this capability to customers globally."
    "More importantly," Pol continued, "CEOs and CIOs recognize the
complexities associated with globally managing the ICT requirements of their
businesses, and this is driving the convergence of the communications and IT
sectors.  Customers are demanding integrated solutions, and looking for
commercially flexible providers who understand how to effectively manage a
multi-vendor solution, so they don't have to.  BT has core expertise in this
area and has relationships with the right partners to deliver complete
solutions to our customers."
    The U.S. represents the world's largest growth market for ICT services,
and is a key market for BT.  The company serves large enterprise customers
operating in and out of the Americas including Unilever, Manpower, Honeywell,
VISA International, Astra Zeneca, LSG SkyChefs, National Car Rental, many of
the world's largest financial institutions, the major U.S. broadcast networks
and the U.S. Federal Government.
    Three core programs form the basis for the transformation plan which will
drive the company toward an increased focus on managed solutions and IT
outsourcing:

    * Expansion of the Americas MPLS platform -- In May, 2003, BT announced
      plans to expand its MPLS infrastructure in the Americas. New nodes in
      Phase I cities (Detroit, Denver, Houston, Miami, Seattle, Washington,
      DC, Toronto and Mexico City) were activated on schedule in Fall, 2003,
      bringing the current total to 16.  The expansion program will be
      continued to provide a flexible platform on which to build additional
      value added-capabilities.  Phase II cities to be operational in 2004
      include Charlotte, NC, St. Louis, Cleveland and Minneapolis.  When
      completed, the Americas network will include 23 points of presence,(3)
      making it one of the largest MPLS networks of any carrier in the region.
      This broader footprint will allow BT to offer domestic VPN services to
      multinational customers in addition to their current international
      network connections.

    * "Manager of Networks" -- Leveraging its deep experience and expertise in
      managing networks, BT offers a "Manager of Networks" approach, offering
      customers a scalable service platform that integrates the products and
      services of multiple network suppliers into a single BT network service
      with BT defined and contracted quality parameters.

    * Continued development of ICT proposition -- BT will continue to develop
      its comprehensive suite of global ICT capabilities, offering an expanded
      suite of services to customers in the Americas.  New propositions
      include solutions in the areas of CRM/Contact Centers, Security,
      Mobility and Office Agility.
      Major product milestones for 2004 include:

      --  AAI (Applications Assured Infrastructure),  a groundbreaking suite
          of industrialized managed services that enable BT to assure
          application performance across an enterprise's entire ICT
          infrastructure
      --  MMP, a powerful messaging platform that simplifies all aspects of
          email management
      --  the launch of IPSec and DSL access in the US
      --  new offers in broadcast services (IPTV, BT SatNet) and conferencing
          solutions

    "As other service providers are reducing their headcount, BT Americas is
increasing its number of employees this year by more than six per cent, and
that is over the six per cent we added last year," said Pol.  "We are now
expanding our sales capabilities within the region, building a world-class
base of high-level outsourcing and consulting expertise and vertical industry
specialists.  We're also strengthening our support structure with additional
technical designers, project managers and other key functions."
    BT will also build on its current relationships with leading IT players to
develop a range of "sell to", "sell through" and "go-to-market" relationships.
On May 4, BT announced a global IT and communications alliance with HP that
will address mutual growth opportunities in the ICT marketplace.
    BT has kicked off a U.S. advertising campaign, targeted at senior IT
decision makers, with poster ads at Dulles International Airport, Washington,
DC.  The campaign includes ads at other U.S. international airports as well as
print and online media. A broader global advertising campaign will follow in
September.
    Beyond the U.S., BT plans to pursue major opportunities in Canada and
Central and Latin America through strategic relationships to provide cost-
effective intra-regional capabilities. "Our strategy is to understand where
our customers need us to be and to continue to invest in expanding our
services to meet their needs," said Pol.  In 2004, BT will extend its coverage
in Ecuador and Peru.
    BT is gaining recognition as a leader in ICT solutions and outsourcing.
Recent contracts with UK National Health Service, NATO, and other large
government contracts show evidence of BT's ability to win major corporate and
government contracts and deliver these globally.

    About BT Global Services
    BT Global Services is BT's business services and solutions division,
serving customers worldwide. As an information and communications technology
service provider, BT provides integrated data and value-added services to meet
the needs of multi-site organisations with European operations.
    Extensive global service capabilities and strong strategic partnerships
also enable BT to serve customers in all key commercial centres of Europe, the
Americas and Asia Pacific.
    The BT Global Services portfolio ranges from desktop and network equipment
and software, transport and connectivity, IP-based e-business solutions,
managed network services and systems integration to consultancy for complex
global requirements.
    With 18 years of experience in global account management, BT Global
Services has 50 per cent of its people based outside the UK, serving large
business customers worldwide.

    Notes to Editors:
    (1) British Telecommunications plc ("BT") has conducted business in the
        Americas through its subsidiaries, including BT Americas Inc., since
        1988.  Through its subsidiaries, it has approximately 2,000
        professionals in the Americas, and operates its own network
        infrastructure across the continental US, Canada and Latin America and
        has multiple sales offices nationwide.
    (2) According to the European Carrier Scorecard Report (April 2004)
        published by industry analyst The Yankee Group
    (3) BT Americas Network points of presence today:  Atlanta, Boston,
        Chicago, Dallas, Denver, Detroit, Houston, Los Angeles, Mexico City,
        Miami, New York, Philadelphia, Seattle, San Francisco, Toronto,
        Washington, DC.  Planned for 2004/05:  Charlotte, Cincinnati,
        Cleveland, Minneapolis, Phoenix, St.Louis, Tampa.

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