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Procter & Gamble selects BT for global IT requirements

Johannesburg, 12 Jun 2008

BT announced today it has signed a five-year contract with Procter & Gamble (P&G) to provide and manage a broad and integrated portfolio of services in support of P&G's information technology (IT) requirements. The agreement is valued at $650 million.

With the agreement, BT will provide and manage P&G's local and wide area network infrastructure across more than 1 100 locations in more than 82 countries.

In addition, BT will migrate these services to a state-of-the-art, high-speed, Internet Protocol (IP)-based global MPLS (multiprotocol label switching) infrastructure. BT will also provide and manage perimeter security and firewall services, conferencing, remote access, voice and IP telephony services, and Internet services to support P&G's IT requirements.

The portfolio of managed services is expected to enable P&G to benefit from greater cost efficiency and control through a standardised, flexible and future-proof communications infrastructure platform with enhanced service levels to users.

P&G will also gain the ability to strategically leverage the solution to drive competitive strength, optimisation in business processes and operations, and innovation, and business agility. Concurrently, the network infrastructure and associated applications are designed to ensure compliance with policy, regulatory and security standards.

"We are looking forward to partnering with BT. We are confident that they can bring world-class innovation to transform our network and our business," said Jim Fortner, Director of Workplace and Infrastructure Solutions at P&G.

"We're delighted to deliver and manage a broad portfolio of IT services that will serve P&G today and in the future," stated Francois Barrault, CEO BT Global Services. "This announcement further underpins BT's commitment to being an innovator focused on addressing the needs of global businesses in the Americas."

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BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2008, BT Group plc's revenue was lb20,704 million with profit before taxation and specific items of lb2,506 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.bt.com/aboutbt.

Procter & Gamble

Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach3, Bounty, Dawn, Pringles, Folgers, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Actonel, Duracell, Olay, Head & Shoulders, Wella, Gillette, and Braun. The P&G community consists of over 135,000 employees working in over 80 countries worldwide. Please visit http://www/pg.com for the latest news and in-depth information about P&G and its brands.