BT and Reuters Sign Major Contract

    LONDON, March 10 /PRNewswire-FirstCall/ -- BT (NYSE:   BT) and Reuters
 (RTR: LSE) today announced that BT will become Reuters supplier of network
 services in a contract under which Reuters is expected to spend in the region
 of $3 billion over eight and a half years.  BT will also acquire Radianz, the
 leading financial services extranet provider, from Reuters for a consideration
 of $175m for the business plus any cash remaining on the balance sheet, net of
 working capital adjustments, at the date of completion.
     Under the network services agreement, BT will provide and manage secure
 data networks for Reuters products and services world wide.  This will see
 Reuters customers benefit from the breadth and flexibility of BT's global
 portfolio of networked IT services.  In addition, BT's skills and expertise in
 the provision and management of highly resilient networks will enable Reuters
 to continue the substantial improvements to its products.
     The purchase of Radianz is an important step in BT's continuing
 transformation into a global provider of networked IT services. The move is a
 logical evolution for Radianz, strengthening its position as a neutral, shared
 market infrastructure provider for the financial services industry.  Following
 the acquisition, Radianz will continue to provide high quality extranet
 services for Reuters and the global financial services market. The company and
 its customers will benefit from a broader range of integrated services in the
 future provided by BT.
     Tom Glocer, Reuters Group chief executive, said: "The network services
 agreement with BT signals the start of an important relationship.  It will see
 Reuters and its customers benefit from the range of communication services
 that BT and Radianz will provide to the financial services community.  Along
 with the sale of Radianz, it also sees Reuters exiting the provision and
 management of data networks.  This is a major contributor to our Fast Forward
 business transformation programme and will allow Radianz to build upon its
 recent successful performance.  I look forward to working with BT as a
 partner."
     Ben Verwaayen, chief executive, BT, said: "I am very excited about the
 possibilities that come from this relationship and believe the benefits for
 both companies will be significant. For Reuters, having a high-performance
 communications network is central to its business. The network services
 contract is the latest example of major enterprise customers choosing BT as
 their global communications partner. The acquisition of Radianz is of
 strategic importance as the global financial services market offers a huge
 opportunity to BT, and this will form the cornerstone of our approach to this
 sector."
     This is the latest in a series of announcements by BT of major customer
 contract wins. It also follows the acquisitions of Albacom and Infonet. The
 deal announced today is the result of the news in October 2004 that BT and
 Reuters were in exclusive discussions about a long-term network services
 agreement and ownership of Radianz. The completion of the network services
 agreement is subject to the completion of the acquisition of Radianz by BT,
 which is subject to final regulatory approvals and other customary completion
 conditions, expected in the next three months.
     The consideration for BT's acquisition of Radianz from Reuters will be
 satisfied in cash at completion.  Reuters intends to use the proceeds from the
 sale of Radianz to invest in its business and pay down debt.  As a result of
 the transaction, future funding obligations from Reuters to Radianz of $44m
 will be extinguished.  Radianz had reported net assets of $185m as at 31
 December, 2004 and a 2004 loss before tax of $2m (Radianz results are
 currently unaudited).
 
     About Reuters
     Reuters (http://www.reuters.com), the global information company, provides
 indispensable information tailored for professionals in the financial
 services, media and corporate markets. Its trusted information drives decision
 making across the globe based on a reputation for speed, accuracy and
 independence. Reuters has 14,500 staff in 91 countries. This includes 2,300
 editorial staff in 196 bureaux serving 129 countries, making Reuters the
 world's largest international multimedia news agency. In 2004, Reuters Group
 revenues were 2.9 billion pounds Sterling.
     Reuters and the sphere logo are the trade-marks of the Reuters group of
 companies.
 
     Forward-looking statements
     This presentation may be deemed to include forward-looking statements
 relating to Reuters within the meaning of Section 27A of the US Securities Act
 of 1933 and Section 21E of the US Securities Exchange Act of 1934. Certain
 important factors that could cause actual results to differ materially from
 those disclosed in such forward-looking statements are described in Reuters
 Annual Report and Form 20-F 2004 under the heading 'Risk Factors'. Copies of
 the Annual Report and Form 20-F 2004 and the press releases referenced above
 are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P
 4AJ.  In particular, Reuters ability to complete the transactions and realize
 the anticipated benefits is subject to the risks that the conditions to such
 transactions may not be not satisfied and that BT's acquisition and operation
 of Radianz may not result in the anticipated benefits and efficiencies to
 Reuters.  Any forward-looking statements made by or on behalf of Reuters speak
 only as of the date they are made, and Reuters does not undertake to update
 any forward-looking statements.
 
     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 a comprehensive range of communications and related
       services to more than 20m UK consumers and businesses.
 
     * 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 and private circuits.
 
     * BT Global Services, providing IT and networking services to meet the
       needs of multi-site organisations globally.  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 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 Radianz
     Radianz (http://www.radianz.com) is the leading provider of secure,
 reliable, and scalable connectivity to the global financial community.  The
 Company's shared market infrastructure is a neutral platform that provides
 turnkey access to a broad array of pre-trade, trade, and post-trade
 applications from leading content and service providers across the straight-
 through processing (STP) chain.  In 2004, both the readers and editors of
 WATERS magazine in separate surveys named Radianz "Best Network Provider."
 Radianz and the lighthouse logo are trademarks of the Radianz group of
 companies worldwide.
 
 

SOURCE  BT Group plc