BT to Manage THALES Network Services.

BT today announced the signature of an outsourcing contract with THALES Group, an international electronics and systems group serving the defence, aeronautics, security and services markets. The five-year contract covers the management of all fixed voice and data network services for THALES and its subsidiaries in 42 countries. BT will take over all operational management of their services and some of the existing contracts, and will manage the gradual migration of those services towards an IP platform, enabling progressive and controlled introduction of Voice over IP.

Francois Barrault, President of BT International, said: "This contract demonstrates once again BT's position as a strategic partner in conducting large international projects. I am delighted with the trust THALES places in our international team, and with this new confirmation of the strength of BT's involvement in France and worldwide, especially in the outsourcing field."

   This contract is effective from January 14, 2005.    About BT  

BT is one of the world's leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include IT and networking services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:

BT Retail, providing fixed and mobile communications services and solutions and IT and networking services to more than 20 million business and residential customers in the UK. It is also a leading UK internet services provider.

BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband, private circuits.

BT Global Services, providing IT and networking services internationally to meet the needs of multi-site organisations with European operations. BT Global Services operates in more than 130 countries and also offers international carrier services.

In the year ended 31 March 2004, BT Group's turnover was 18,519 million pounds Sterling with profit before goodwill amortisation, exceptional items and taxation of 2,013 million pounds.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

   For more information, visit http://www.bt.com/aboutbt    About THALES  

THALES is an international electronics and systems group serving defence, aerospace, security and services markets. The Group employs 61,500 people worldwide and generated revenues of 10.6 billion euros in 2003.

CONTACT: Eileen Connolly, +1-908-410-1419, or Diane Noe, +1-703-755-6215, both for BT

Web site: http://www.bt.com/aboutbt