Between 4th September 2006 and 31st December 2006 inclusive, Business Customers will be able to apply for reduced Local & National Geographic, Daytime, Evening and Weekend call rates along with a zero Minimum Call Charge.

The BT Customer Commitment (Special Offer 16) £700000+,with or without BT Mobile, rates will be available from the 4th September 2006.

Customers wishing to take advantage of the Special Offer must enter into a new BT Customer Commitment Contract (selecting Option 3) and commit to a minimum Committed Call Spend of £700000 (Exc VAT).

In order to qualify for the Special Offer the Customer must:

• 1)Register for the Offer by completing Section 1 of the BT Customer Commitment (Special Offer 16) £700000+,with or without BT Mobile, Application Form, (The Application Form). The Application Form must be returned to BT on or before the 31st December 2006. The Application Form can be obtained from the Customer's Account Manager;
• 2)Following (or in conjunction with) registration, apply for a draft Inventory via the Customer's Account Manager. BT will then produce and return to the Customer a draft Inventory for checking;
• 3)Complete and sign Section 2 of The Application Form, which must be returned with the Inventory to BT on or before the 31st May 2007. Section 2 should only be completed once the Customer is satisfied the Inventory is correct.

Customers moving from an existing Contract will be subject to any existing Terms and Conditions regarding migration and reconciliation/reward of that existing Contract.

The Special Offer rates will apply for a minimum period of 12 months commencing on the Operational Service Date and will continue thereafter until either the Customer's BT Customer Commitment Contract is terminated or BT varies the rates upon 14 days' notice.

Special Offer Rates: Local & National Geographic, Daytime, Evening and Weekend pence per minute (ppm) call rates for a Minimum Committed Call Spend of £700000£1000000£1600000£3500000 and £7000000 are as follows:

The charges for all other call types are specified in the Price List, Section 56 Part 9, `BT Customer Commitment'.

These will be dependent upon the Committed Call Spend and Contract Period as stated on The Application Form.

* Includes calls to FM 1, 3, 4, 5, 7, 8 and 9.

1.Includes calls charged at g21 rate in Section 2 Part 10 and g21 calls shown as 11 under Categorisation for Customer Options in Section 2 Part 11

The charges for all other call types are specified in the Price List, Section 56 Part 7 , `BT Customer Commitment'. These will be dependent upon the Committed Call Spend and Contract Period as stated on The Application Form.

All other charges will apply as set out in the Price List (Section 56 Part 7 BT Customer Commitment) for the appropriate Committed Call Spend tier selected.

If the Customer does not meet the Committed Call Spend as specified on The Application Form, the following reconciliation rules apply.

The lower of:

• a)20% of the difference between the Adjusted Committed Call Spend and the Total Contributory Call Spend; or
• b)A £25.00 (Exc VAT) administration fee per line, plus, for all the minutes used between the Operational Service Date and Spend Measurement Date, the sum of the total of the difference between the pence per minute call rates charged at the Committed Call Spend as specified on The Application Form and the BT Customer Commitment standard pence per minute call rates that apply to the spend band that the actual Total Contributory Call Spend falls in.

The Terms and Conditions applicable to the BT Customer Commitment Contract will also apply to this Special Offer.

Customers taking this Special Offer are not eligible for the Dual Discount Scheme.

British Telecommunications plc

16 August 2006