Capgemini Transfers a Substantial Portion of European Network Services Unit to BT

Capgemini, one of the world's foremost providers of consulting,
technology and outsourcing services, is transferring a substantial
portion of the company's European Networking Infrastructure Services
(NIS) operations.

The European NIS operations will be transferred to BT, a leading
provider of communications solutions and services in 170 countries,
specializing in networked IT services, national and international
telecommunications, and higher-value broadband and internet products
and services. BT will engage approximately 250 of Capgemini's NIS
employees in Europe, including the UK and Spain. The company will
provide NIS services to Capgemini customers, supplementing transferred
Capgemini employees with BT staff.

"We made the decision to transfer a substantial portion of the
European NIS to improve the overall value for our clients. This will
also enable Capgemini to focus its own capabilities more on
high-value, strategic and innovative work," said Paul Spence, CEO of
Global Outsourcing Services for Capgemini.

"Infrastructure Management is critical to our clients, and a key
part of our service portfolio. But we believe world-class networking
infrastructure services can be delivered more cost-effectively by BT.
This transfer is part of our commitment to deliver innovative
solutions to meet the needs of our clients - either through our
internal expertise or by leveraging best-in-class expertise of
companies like BT.

"Customers will continue to be served not only by the Capgemini
specialists, who will become BT employees, but also by BT's globally
acclaimed communications services specialists," Spence said. "BT
benefits because our experts will significantly deepen the company's
enterprise knowledge, creating new opportunities. And NIS employees
benefit from the new opportunities created by BT's focus on the
networked IT services space."

Andy Green, CEO, BT Global Services, said: "We are delighted to
have agreed to this transformational deal with Capgemini. The two
companies have an exceptionally good working relationship and we are
excited by the growth potential of this new deal. We have a great
record of taking on people in outsourcing deals. The people
transferring to BT bring world class skills in serving the complex
needs of large business and government customers."

About Capgemini

Capgemini, one of the world's foremost providers of Consulting,
Technology and Outsourcing services, has a unique way of working with
its clients, which it calls the Collaborative Business Experience.
Through commitment to mutual success and the achievement of tangible
value, Capgemini helps businesses implement growth strategies,
leverage technology, and thrive through the power of collaboration.
Capgemini employs approximately 61,000 people worldwide and reported
2005 global revenues of 6,954 million euros. www.capgemini.com.

About BT

BT is one of the world's leading providers of communications
solutions and services operating in 170 countries. Its principal
activities include networked IT services, local, national and
international telecommunications services, and higher-value broadband
and internet 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 2006, BT Group's revenue was GBP
19,514 million with profit before taxation of GBP 2,040 million.
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 in London and New
York. For more information, visit www.bt.com/aboutbt.

For further information on BT

Inquiries about this news release can also 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 BT Group news releases can be accessed at
our web site: www.bt.com/newscentre.

Justine Manche, BT Global Services PR, Tel: 020 7356 5371 or
email: justine.manche@bt.com

James Hoyles, Fishburn Hedges, Tel: 020 7544 3041 or email:
james.hoyle@fishburn-hedges.co.uk