Issue of £2bn of long dated sterling bonds

British Telecommunications plc

21 June 2018

BT to issue £2bn of long dated Sterling denominated bonds to be held by the BT Pension Scheme

British Telecommunications plc ("BT") is to issue £2bn of long dated Sterling denominated bonds under its €20,000,000,000 Euro Medium Term Note Programme, which will be held by the BT Pension Scheme (the "BTPS").

Further to the announcement on 10 May 2018, the following bonds are to be issued:

1) GBP 330,000,000 3.64 per cent. Notes due 25 June 2033;

2) GBP 330,000,000 3.883 per cent. Notes due 25 June 2039;

3) GBP 340,000,000 3.924 per cent. Notes due 25 June 2042;

4) GBP 330,000,000 1.613 per cent. CPI Linked Notes due 25 June 2033;

5) GBP 330,000,000 1.739 per cent. CPI Linked Notes due 25 June 2039; and

6) GBP 340,000,000 1.774 per cent. CPI Linked Notes due 25 June 2042.

The bonds are to be issued on Monday, 25 June 2018. BT will use the proceeds from the issuance of these bonds to make pension deficit contributions under the recovery plan agreed between BT and the BTPS as part of the 2017 funding valuation agreement.

The BTPS intends that no more than £600m in aggregate nominal amount of the six tranches of bonds may be sold over the three years following their issue.

The issuance of these bonds is an important element of the pension funding plan announced by BT on 10 May 2018, and provides the BTPS with a long term Sterling denominated asset.

For further information, please contact:

BT Investor Relations

Tel: +44 20 7356 4909

Email: [email protected]

About BT

BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services. BT consists of four customer-facing units: Consumer, Enterprise, Global Services and Openreach.

For the year ended 31 March 2018, BT Group's reported revenue was £23,723m with reported profit before taxation of £2,616m.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc 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.btplc.com