Contents:

1. Synopsis 2. Company information 2.1 Year 2005 results 2.1.1 Financial 2.1.2 Operating 2.1.3 Update - March - Dec 2005 2.2 Spinning off mmO2 2.3 BT’s structural separation 2.3.1 Ofcom’s Strategic Review 2.3.2 BT’s proposals 2.4 Next Generation Networks (NGN) 2.5 Project Bluephone 3. BT Company analysis – updated February 2006 3.1 Managing early problems 3.1.1 Disposals and acquisitions 3.1.2 Coping with competition 3.2 The way forward 3.2.1 Broadband central to strategy 3.2.2 Expanding wireless 3.3 Upgraded network plans – 2005 4. The network in 2006 5. Operations 5.1 BT Retail 5.1.1 BT Openworld 5.2 BT Wholesale 5.3 BT Global Services 5.4 BT Exact 5.5 BT Openreach 5.6 Re-entry into the mobile market 5.6.1 Residential products 5.6.2 Business products 5.6.3 Wholesale products 5.7 Mobile TV 6. Contact details 7. Related reports Exhibit 1 – BT Group at a glance Exhibit 2 – Major subsidiaries – 2005 Exhibit 3 – Joint Ventures – 2005 Table 1 – BT Group net debt – 2001 - 2005 Table 2 – BT Group revenue – 1997 - 2005 Table 3 – Group revenue by segment – 2003 - 2005 Table 4 – Operating statistics per UK Fibre optic cable, Internet customers and Broadband DSL lines – 1997 - 2005 Table 5 – BT fixed call volume growth – 1998 - 2005 Table 6 – BT market share of residential call types by traffic volumes – 2003 - 2005 Table 7 – BT results – 2004 - 2005 Table 8 – Operating results by sector – 2004 - 2005 Table 9 – BT Group turnover by sector (£ million) – 2004 - 2005 Table 10 – BT’s market share of call types by traffic volumes – 2003 - 2005 Table 11 – BT Retail statistics – 2003 - 2005 Table 12 – BT Retail turnover – 2003 - 2005 Table 13 – BT Wholesale DSL connections and annual growth – 2001 - 2005