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Notifiable Interest

The Company was notified on 23 July 2004 that The Trustees of The BT Pension Scheme, BriTel Fund Trustees Limited, as at 21 July 2004 had a notifable interest in a total of 3,053,565 ordinary shares in the Company representing 8.12 per cent of the issued share capital of that class. Of the above mentioned shares, 70,000 are currently on loan and therefore the net holding of BriTel Fund Trustees Limited is 2,983,565 ordinary shares representing 7.93 per cent of the ordinary issued share capital of that class.