UK SHUNS TV TO PLAY ONLINE

November 10, 2004

Traditional forms of entertainment such as the TV and board games are being overlooked in favour of newer, more interactive technology, according to research undertaken on behalf of BT.

The research shows that rather than slouching on the sofa in front of the TV, watching programmes, over half of all the online console gamers questioned, would rather give up soap operas and comedies than their online games(1). And it's not just committed gamers who feel this way - approximately 77 per cent of 11-16 year olds would rather play computer games than traditional board games.(2)

Online gaming adds a new dimension for both console and PC gamers alike. With the launch of online games such as Halo 2 or Killzone you can play against and talk to gamers from all over the world at the same time. Global rivalries are strong online, with a third of UK gamers (31 per cent) choosing the US as the nation they most like to beat online followed closely by the French (18 per cent) and Germans (11 per cent)(3).

Online gamers see themselves as part of a community of like-minded individuals and are a very sociable bunch - 58 per cent like to play online against new people and 27 per cent prefer online gaming as they compete against real people whilst 50 per cent enjoy it as it brings people together(4). Moreover, 17 per cent of online gamers would find a world without online gaming almost impossible to live in(5).

BT is committed to driving uptake of online console gaming in the UK and offers broadband packages designed to enable consumers take their console online. This week, BT announced it is offering new subscribers to BT Yahoo! Broadband and BT Broadband(6) the chance to claim a limited edition online gaming kit(7) for their PlayStation^® 2 or Xbox^® video game system.

Duncan Ingram, managing director broadband and internet services BT Retail, of BT said: "This research shows that consumers are looking for more interaction when it comes to home entertainment. The advent of broadband brings a whole new social experience to console gaming by allowing gamers to take their consoles online and play against a community of gamers from all over the world."

For more information visit www.btyahoo.com/onlinegaming or www.bt.com/onlinegaming.

2 This research was undertaken by the Future Foundation on behalf of BT over a 3 month period between January and May 2004

3 This research was undertaken by Research International on behalf of BT in September 2004

4 This research was undertaken by Research International on behalf of BT in September 2004

5 This research was undertaken by Research International on behalf of BT in September 2004

6 Broadband from BT is subject to availability and survey. BT line or similar required. 12 month minimum term applies. Minimum computer specification applies. Usage allowances apply. Terms and conditions apply.

7 Offer is open to the first 3000 Xbox customers and to the first 3,000 PlayStation 2 customers who order the above broadband products or until 31 January 2005, whichever is the earlier. Broadband installation must take place by 28 February 2005. Available to new customers only. Redemption of the offer is via www.bt.yahoo.com/online gaming at the time of ordering only. Terms and Conditions apply

Notes to Editors:

About the research:

This research was undertaken by Research International in September 2004 and the Future Foundation between January and May 2004.

About Research International:

Target audience:

• Online console gamers, offline console gamers and non console (PC) gamers online

• Sample taken from BT Internet/Yahoo! customers

• E-mail invitation sent to invite respondents to complete a 15-minute online questionnaire

• Achieved 847 completed responses

About The Future Foundation:

• The Future Foundation undertook the research for Broadband from BT with 50 families with children aged between 11 and 16 over a three month period between January and May 2004

• Each member of the family was recruited immediately after signing up for broadband

• Each family kept qualitative diaries to provide feedback showing how they used the internet and feedback was gathered shortly after gaining broadband and later after four months of using the product

• Parents and children from each family were interviewed twice, once immediately after signing up to broadband and once four months later

• In depth interviews were conducted with both children and parents

• Further information on the research is available on request

About BT

BT Group plc is the holding company for an integrated group of communications businesses and 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.

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 network centric Information and Communications Technology (ICT) solutions, 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 to over 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 and PSTN.

• BT Global Services, providing ICT services internationally to meet the needs of multi-site organisations with European operations. BT Global Services operates in 136 countries and also offers international carrier services.

In the year ended 31 March 2004, BT Group's turnover was £18,519 million with profit before goodwill amortisation, exceptional items and taxation of £2,013 million.

For more information, visit www.btplc.com

About Xbox

Xbox (http://www.xbox.com) is the video game system from Microsoft that brings people together for the most exhilarating game and entertainment experiences. Xbox delivers an expansive collection of breakthrough games, powerful hardware and the unified Xbox^® Live^TM online service. The new tagline, "it's good to play together," captures the spirit of Xbox as the social hub of the new digital entertainment lifestyle. Xbox is now available in the UK for an estimated street price of £99.99.

About Sony Computer Entertainment Europe Ltd.

Sony Computer Entertainment Europe, based in London, is responsible for the distribution, marketing and sales of PlayStation, PS one and PlayStation 2 software and hardware in 102 territories across Europe, the Middle East, Africa and Oceania. At the end of September 2004, over 39 million PlayStation units had been shipped across these PAL territories, over 100 million worldwide. Between its European debut on 24 November 2000 and the end of September 2004, over 25 million PlayStation2 units have been shipped across the PAL territories, over 74 million world-wide, making it one of the most successful consumer electronic product launches in history.

PlayStation and the PlayStation logo are registered trademarks, PS one, PS2 and PSP are trademarks of Sony Computer Entertainment Inc. All other trademarks are property of their respective owners.

More information about PlayStation products can be found at http://www.scee.com and www.playstation.com.

For further information please contact:

Amit Patel or Vaneetha Balasubramaniam at Kazoo Communications:

Phone: 020 7313 9170, email: amit@kazoo.co.uk, vaneetha@kazoo.co.uk