BT Supplies International Communication Services to Volvo Group

LONDON, Feb. 24, 2005 -- BT today announced the signature of a contract for the supply of international data communication services to the Volvo Group and its subsidiaries. The multi-million Euro contract will cover approximately 80 locations and run for a period of three years.

Volvo IT managed the procurement process for a global corporate network to be used by the Volvo Group's companies and other Volvo IT customers worldwide, interconnecting locations in Europe, in Asia and in the Americas. BT will supply an improved ATM-based infrastructure as well as services such as network monitoring and internet access. The technology refresh included in the contract carries an option for the network to be migrated to an MPLS platform within two years. Delivery has already started.

Francois Barrault, president BT International, said: "BT is proud to provide communication solutions to world-leading brand names such as the Volvo Group and its subsidiaries. Our objective is to provide a solution which helps Volvo Group meet the technology challenges of the future. This contract is further recognition of BT's ability to understand customer needs and deliver flexible business solutions."

The bid was led by BT's operation in the Nordics. Over the past three months, BT has won contracts worth a total of more than euro 40 million with companies based in this region.

About Volvo IT

Volvo IT provides IT solutions and services for the entire industrial process, including IT operations and infrastructure. Customers are both within the automotive industry and other sectors. In 2004, Volvo IT's global operations generated sales of approximately SEK 6 billion and employed about 5,000 people in Europe, North America, Latin America and Asia.

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