Holding(s) in Company

TR-1: Notifications of Major Interests in Shares

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

2. Reason for notification (please tick the appropriate box or boxes)

An acquisition or disposal of voting rights

X

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached 

An event changing the breakdown of voting rights

Other (please specify): Transferred to External Fund Manager

3. Full name of person(s) subject to notification obligation:

BT Pension Scheme Trustees Limited as trustee of the BT Pension Scheme. See Section 9 for further information.

4. Full name of shareholder(s) (if different from 3):

N/A

5. Date of transaction (and date on which the threshold is crossed or reached if different):

3 November 2008

6. Date on which issuer notified:

4 November 2008

7. Threshold(s) that is/are crossed or reached:

2%

8: Notified Details

A: Voting rights attached to shares

Class/type of shares

If possible use ISIN code

Situation previous to the triggering transaction

Resulting situation after the triggering transaction

Number of shares

Number of voting rights

Number of shares Direct

Number of voting rights

Percentage of voting rights

Direct

Indirect

Direct

Indirect

0266846 ORD 50p GB0002668464

1,278,402

1,278,402

1,043,405

1,043,405

115,794

2,570%

0.285%

B: Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Expiration date

Exercise/ conversion period/date 

No. of voting rights that may be acquired (if the instrument exercised/converted)

Percentage of voting rights

Total (A+B)

Number of voting rights

Percentage of voting rights

1,159,199

2.855%

9. Chain of controlled undertakings through which the voting rights and /or the financial instruments are effectively held, if applicable:

BT Pension Scheme Trustees Limited is the parent undertaking of Britel Fund Trustees Limited, which is the parent undertaking of Hermes Fund Managers Limited. Hermes Fund Managers Limited is the parent undertaking of:

1. Hermes Equity Ownership Services Limited (voting rights held in this issuer: 0.285%)

2. Hermes Investment Management Limited (voting rights held in this issuer: 2.570%)

Please see Section 13 for further information.

Proxy Voting:

10. Name of proxy holder:

See Comment in Section 13.

11. Number of voting rights proxy holder will cease to hold:

See Comment in Section 13.

12. Date on which proxy holder will cease to hold voting rights:

13. Additional information:

Hermes Equity Ownership Services Limited hold the voting rights under a standing proxy contained in services agreements for the provision of corporate governance services to various underying clients.

Hermes Investment Management Limited hold the voting rights under a standing proxy contained in investment management agreements with various underying clients, which includes all the shares owned directly by BT Pension Scheme.

All voting rights held on behalf of the above entities are aggregated for the purposes of DTR 5.2.1(a). The aggregation is made at the lower threshold of 3% and above because Hermes Equity Ownership Services Limited does not manage investments for the purposes of the investment manager exemption contained in DTR 5.1.5.

This disclosure is made by BT Pension Scheme Trustees Limited, which is the ultimate parent undertaking for the purposes of DTR 5.2.1(e).

14 Contact name:

Valerie Davidson / Margaret Moss

15. Contact telephone number: