TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESⁱ

1. Identity of the issuer or the underlying issuer
of existing shares to which voting rights are
attached:

ⁱⁱ

BT Group plc

2 Reason for the notification

(please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the
notification obligation:

ⁱⁱⁱ

Invesco Limited

4. Full name of shareholder(s)
 

 (if different from 3.):^iv

5. Date of the transaction and date on
which the threshold is crossed or
reached:

^v

07 July 2010

6. Date on which issuer notified:

08 July 2010

7. Threshold(s) that is/are crossed or
reached:

^{vi, vii}

10%, 11%

8. Notified details:

A: Voting rights attached to shares

^{viii, ix}

Class/type of
shares

if possible using
the ISIN CODE

Situation previous
to the triggering
transaction

Resulting situation after the triggering transaction

Number
of
Shares

Number
of
Voting
Rights

Number
of shares

Number of voting
rights

% of  voting rights ^x

Direct

Direct

^xi

Indirect

^xii

Direct

Indirect

Ordinary 5p Shares

780,460,169

780,460,169

854,960,561

11.02%

GB0030913577

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial
instrument

Expiration
date

^xiii

Exercise/
Conversion Period

^xiv

Number of voting
rights that may be
acquired if the
instrument is
exercised/ converted.

% of voting
rights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments

^{xv, xvi}

Resulting situation after the triggering transaction

Type of financial
instrument

Exercise price

Expiration date

^xvii

Exercise/
Conversion period

^xviii

Number of voting rights instrument refers to

% of voting rights

^{xix, xx}

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

854,960,561

11.02%

9. Chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held, if applicable:

^xxi

ABN Amro Bank - 952,805
Brown Brothers Harriman, New Jersey - 1,469,116
Bank of Ireland, Dublin - 2,516,627
Bank of New York - 689,780,025
Banque Paribas, Frankfurt - 1,051,996
Bank of New York Mellon - 10,839,330
Bank of New York Singapore - 125,000
Boston Safe Deposit - 310,805
Credit Agricole Indosuez, Luxembourg - 124,269
Chase Bank Hong Kong - 984,911
JP Morgan Chase - 2,620,144
Chase, Frankfurt - 2,896,004
Citibank, Luxembourg - 1,954,337
Citibank, New York - 162,522
Citibank - 429,434
Credit Agricole Indosuez - 463,929
EKK  EG Kasal - 11,262
Erste Group Bank, Austria - 944,930
HSBC Bank plc, London - 13,663,885
Japan Trustee Services Bank - 777,294
Mellon Bank , Pittsburgh - 3,858,709
B.Metzler seel.Sohn & Co.KG, Frankfurt - 56,439
Master Trust Bank - 6,481,994
Morgan Stanley, London - 176,559
National Custody Services - 387,372
State Street, Sydney - 20,000
State Street Trust & Banking Co, Boston - 1,342,253
State Street Trust & Banking Co, Hong Kong - 298,906
State Street Trust & Banking Co, London - 99,520,005
Trust & Custody Services - 30,237
Northern Trust Company, London - 7,322,405
Vorarlberger Landes-und Hypothekenbk Akti - 2,019
Invesco PowerShares Capital Management LLC Limited -   (ADS ratio 10:1) - 210,430
Invesco PowerShares Capital Management LLC Limited - 386,926
Invesco PowerShares Capital Management Ireland Ltd. - 126,530
Invesco Advisers Inc. - 1,918,991
Other - 742,161

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease
to hold:

12. Date on which proxy holder will cease to hold
voting rights:

13. Additional information:

14. Contact name:

Anna Watch

15. Contact telephone number:

020 7356 5158