Between 18th July 2005 and 31st October 2005 inclusive, Business Customers will be able to apply for reduced Local & National Geographic, Day, Evening and Weekend call rates along with a zero Minimum Call Charge.

The July 2005 Special Offer rates will be available from the 1st August 2005.

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 Special Offer July 2005 Application Form, which must be returned to BT on or before 31st October 2005. The Special Offer July 2005 Application Form, can be obtained from the 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 Special Offer July 2005 Application Form, which must be returned with the Inventory to BT on or before the 31st July 2006. 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 to the Customer's Contract for a 12 month period commencing from the Operational Service Date as specified by BT in Section 4 of the Special Offer July 2005 Application Form.

Special Offer Rates: Local & National Geographic, Day, Evening and Weekend pence per minute (ppm) call rates are as follows:

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

If the Customer does not meet the Committed Call Spend as specified on the Special Offer July 2005 Application Form, the following Reconciliation rules apply.

the lower of:

• a)20% of the difference between the 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 prices charged at the Committed Call Spend as specified on the Special Offer July 2005 Application Form and the standard pence per minute prices that apply to the spend band that the actual Total Contributory Call Spend falls in.

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 Special Offer July 2005 Application Form.

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

At the end of the 12 month Contract Period of this Special Offer, the Special Offer call rates will cease to apply and Customers will revert to the prevailing BT Customer Commitment call rates associated with the Committed Call Spend and Contract Period as stated on the Special Offer July 2005 Application Form. At this point all the prevailing BT Customer Commitment Terms and Conditions will apply including the provisions relating to Contract Period renewal.

British Telecommunications plc

18 July 2005