BT Gives Global Services Update

LONDON -- BT today provided an update on how its Global Services business has carved out a unique position in the marketplace and is set to deliver increasingly profitable revenue growth for the BT Group. BT Global Services is the fastest growing part of BT and is the company's key engine for future growth. It offers customers a distinct range of services based on an unequalled combination of network strength and IT expertise.

   This business has won more than 18bn GBP ($32.5bn) of contracts in the last three years and in the last year alone total revenue growth was more than 10 per cent, well ahead of the market.

   BT Global Services has been strengthened by three major acquisitions in recent months. These acquisitions -- Infonet, Albacom and Radianz -- together with the incorporation of BT's UK Major Business operation, have meant that Global Services now employs more than 30,000 people. These people, based in 50 countries, provide solutions in more than 170 countries.

   The acquisitions will strengthen BT's global reach. The company's 21st century global IP network currently reaches 71 countries and the acquisitions as well as a significant build program will extend that reach to 160 countries by the end of 2007. In 2005 alone, more than one new city a week will be added to this unrivalled network. More than 160,000 customer sites are currently connected over this network and a further 6,000 sites will be being added each month by the end of 2005.

   BT has also given an update on how annual savings and revenue growth are being delivered as a result of these acquisitions. The company confirmed it expects annual savings of around 100m GBP ($180.6m) from year three as a result of the acquisitions of Infonet and Albacom. These savings will help underpin profitable growth at the business.

   Ben Verwaayen, chief executive of BT, said: "These are exciting times for BT and particularly for its global business. This business has gone from strength to strength over the last three years and is now outperforming the market significantly. It offers its customers a unique service based on an unparalleled combination of network strength and IT expertise. This places it in a strong position for the future."

BT Group plc