NEWS

WIRES

OTHER

BT Conferencing to Acquire Wire One Holdings Inc.

Based inDenver, Colorado, Wire One employs over 350 professionals across the US andEurope and provides products and services to over 8,000 customers, including 55% of the US Fortune 100. With over 20 years of videoconferencing support expertise, Wire One is one of the leading providers in the US of easy to use, reliable, and cost-effective video communication solutions. The videoconferencing market is forecast to be worth $2.6bn by 2010*. For the year ended 31 December 2007, the business generated revenues of $140 million (70 million pounds Sterling).

BT Conferencing is one of the leading players in the UK and European conferencing market and has a strong presence inthe United States andAsia Pacific. The acquisition of Wire One will allow BT Conferencing to enhance significantly its existing videoconferencing capabilities and services offering to its customers.

Aaron McCormack, Chief Executive Officer of BT Conferencing said: "The acquisition of Wire One is a tremendous addition to BT's global managed video capabilities, the fastest growing sector in the Teleconferencing industry. We are excited about the business, its employees and the customer base that Wire One has built. We look forward to using these capabilities to create a new suite of managed video services on our global IP network and providing an enhanced offering to both BT Conferencing and Wire One's existing and future customers."

Dan Connors, CEO of Wire One, said, "I am very proud of the accomplishments of our team and am excited about the next step of our evolution as part of BT Conferencing. The combination will enable us to complement our strong video solutions with industry-leading audio and web offerings. Wire One customers will see significant benefits from BT's extensive global presence and a compelling managed services offering."

BT is acquiring Wire One from The Gores Group LLC and the proposed acquisition is contingent upon obtaining the necessary regulatory clearances. The audited gross assets of Wire One as at 31 December 2007 were $90.5 million (45.25 million pounds).

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of local, national and international telecommunications services to our customers for use at home, at work and on the move; higher-value broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2007, BT Group plc's revenue was 20,223 million pounds with profit before taxation of 2,484 million pounds.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges inLondon andNew York. For more information, visit www.bt.com/aboutbt

About BT Conferencing

BT Conferencing was established more than 20 years ago and is now one of the leading global providers of audio, video and web collaboration services. Year on year growth has seen the company out-perform the conferencing industry expectation and with its extensive global portfolio, is now one of the largest conferencing providers in the UK andEurope with current reach in more than 70 countries. BT Conferencing is based in theUSA, EMEA andAsia Pacific and specialises in the delivery of reliable, robust and innovative conferencing solutions and product hardware to some of the largest companies in the world. The company offers tailor-made solutions to customers, whether they are small SMEs or major global businesses. With businesses now juggling to increase productivity, being more environmentally aware and at the same time looking to improve the work-life balance of its employees, conferencing and collaboration services provide a cost effective and time saving solution. For more information visit www.bt.com/conferencing

About Wire One Communications, Inc.

Wire One Communications, with over 20 years of conferencing support expertise, is one of the recognized leaders in providing easy to use, reliable, and cost effective video communication solutions to customers. The company services over 8,000 customers globally and manages over 40,000 conferences a year. Whether the need is for video, audio or web conferencing, streaming or a strategic mix of all media, Wire One is defining the new face of communication, and allowing customers to connect, collaborate, and innovate.

About The Gores Group, LLC

Founded in 1987 by Alec E. Gores, The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses, which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm's private equity funds have committed equity capital of $1.7 billion. Headquartered inLos Angeles, California, The Gores Group, LLC maintains offices inBoulder, Colorado andLondon. For more information, please visit www.gores.com

For further information:

BT: Enquiries about this news release can be made to the BT Group Newsroom on its 24-hour number: 020 7356 5369. From outside the UK dial + 44 20 7356 5369. All news releases can be accessed at our web site: http://www.bt.com/newscentre

SOURCE BT