BT Group PLC — Proxy Solicitation & Information Statement 2011

May 27, 2011

• • Voting ID Task ID Shareholder Reference Number

Please read the notes overleaf before completing this Card.

You can appoint your proxy and give that proxy voting instructions online at www.sharevote.co.uk Alternatively to appoint your proxy by post, please complete this Card in black ink, sign and date it and then return it to our Registrars'

Appointing a proxy will not prevent you from coming to and voting at the AGM.

Proxy appointment and voting instructions, whether online or by post, must be received by our Registrars, Equiniti, by 11 am on Monday 11 July 2011.

I/we appoint Sir Michael Rake or failing him the correctly appointed Chairman of the meeting

to act as my/our proxy at this year's AGM (or any adjournment) and vote as indicated on this Card. To appoint more than one proxy, you can get extra proxy card(s) by calling our Registrars, Equiniti on Freefone 0808 100 4141 (or +44 121 415 7178 from outside the UK) or you can copy this Card. If you decide to appoint more than one proxy, please write above, against the proxy's name, the number of shares they can vote as your proxy.

Please show how your proxy should vote by placing a cross in the appropriate boxes in black ink like this Please mark inside the boxes. A vote withheld is not a vote in law and will not be counted in calculating the proportion of votes for or against a resolution.

Resolutions			For Against Vote withheld Resolutions			For Against Vote withheld
	1. Report and accounts			16. Remuneration of auditors
	2. Remuneration report			17. Authority to allot shares
	3. Final dividend			18. Authority to allot shares for cash*
	4. Re-elect Sir Michael Rake			19. Authority for purchase of
	5. Re-elect Ian Livingston			own shares*
	6. Re-elect Tony Chanmugam			20. 14 days' notice of meetings*
	7. Re-elect Gavin Patterson			21. Authority for political donations
	8. Re-elect Tony Ball			22. Renewal of the employee sharesave scheme
	9. Re-elect J Eric Daniels			23. Renewal of the
	10. Re-elect Rt Hon Patricia Hewitt			international employee sharesave scheme
	11. Re-elect Phil Hodkinson			24. Renewal of the employee share investment plan
	12. Re-elect Carl Symon			25. Renewal of the
	13. Elect Nick Rose			employee stock purchase plan
	14. Elect Jasmine Whitbread			26. Renewal of the executive portfolio
	15. Reappointment of auditors			* Special resolution

Signature Date

(Equiniti's) FREEPOST address over the page (or in the envelope provided, from outside the UK).

(Insert name and address of proxy)

ANNUAL GENERAL MEETING

TO BE HELD AT 11 AM, ON WEDNESDAY 13 JULY 2011 AT OLD BILLINGSGATE, 1 OLD BILLINGSGATE WALK, LONDON EC3R 6DX

Dear Shareholder,

The BT Group plc 2011 Annual General Meeting (AGM) takes place on Wednesday 13 July 2011. Full details of the resolutions to be proposed at the meeting, with explanatory notes, are set out in the Summary financial statement & notice of meeting 2011.

Please read the notes overleaf before completing the AGM Admission Card/Proxy Card.

If you are coming to the AGM, please bring this Card with you to help with identification, and keep it until the end of the AGM. If you are not coming to the AGM you can appoint another person (a proxy) to attend the meeting on your behalf, who can speak and vote there. This can be done online by going to www.sharevote.co.uk or by completing and returning this Card by post.

For convenience, we have already included the appointment of the Chairman as proxy. To appoint someone else, delete 'Sir Michael Rake or failing him the correctly appointed Chairman of the meeting' and insert the name and address of your proxy in the box provided. Your proxy does not need to be a shareholder.

Proxy appointment and voting instructions, whether online or by post, must be received by our Registrars, Equiniti, by 11 am on Monday 11 July 2011.

Sir Michael Rake Chairman 11 May 2011

Equiniti Aspect House Spencer Road LANCING BN99 6GN

Business

Licence

RRHE-THZU-TCUB

Number

Reply

Plus

A G M A D M I S S I O N C A R D / P R O XY C A R D N O T E S

P r o xy a p p o i n t m e n t a n d v o t i n g i n s t r u c t i o n s , w h e t h e r o n l i n e o r b y p o s t , m u s t b e r e c e i v e d b y o u r R e g i s t r a r s , E q u i n i t i , b y 1 1 a m o n M o n d a y 1 1 J u l y 2 0 1 1 .

1 . I f y o u d o n o t i n d i c a t e h o w y o u r p r o xy i s t o v o t e o n a p a r t i c u l a r r e s o l u t i o n , y o u r p r o xy c a n d e c i d e w h e t h e r , a n d i f s o , h o w t h e y v o t e . Y o u r p r o x y c a n v o t e , o r a b s t a i n f r o m v o t i n g , a s t h e y d e c i d e o n a n y o t h e r b u s i n e s s w h i c h m a y v a l i d l y c o m e b e f o r e t h e m e e t i n g .

2 . B e f o r e r e t u r n i n g t h i s C a r d , p l e a s e s i g n a n d d a t e i t , a n d i n i t i a l a n y a l t e r a t i o n s . I n t h e c a s e o f j o i n t h o l d e r s , a n y o n e o f y o u m a y s i g n . I f s o m e o n e s i g n s o n y o u r b e h a l f , t h e a u t h o r i t y u n d e r w h i c h i t i s s i g n e d ( o r a c o p y o f t h e a u t h o r i t y c e r t i f i e d b y a s o l i c i t o r o r n o t a r y ) m u s t b e r e t u r n e d w i t h t h i s C a r d .

3 . W h e r e i t i s a c o m p a n y a p p o i n t i n g t h e p r o xy , t h i s C a r d m u s t e i t h e r b e s e a l e d , o r s i g n e d b y a n o ff i c e r o f t h e c o m p a n y o r a n a u t h o ris e d a t t o r n e y , a n d r e t u r n e d t o g e t h e r w i t h t h e a p p r o p r i a t e a u t h o r i t y o r p o w e r o f a t t o r n e y .

4 . Y o u c a n r e t u r n t h i s C a r d b y F R E E P O ST. T h e r e t u r n a d d r e s s i s p r i n t e d o n t h e b a c k o f t h i s C a r d . I f y o u d o n o t w i s h t h i s C a r d t o b e s e e n b y a n y o n e e x c e p t t h e C o m p a n y a n d t h e R e g i s t r a r s , p o s t i t i n a n e n v e l o p e t o : E q u i n i t i ( 2 4 5 0 ) F R E E P O S T ( S E A 1 0 8 4 6 ) , A s p e c t H o u s e , S p e n c e r R o a d , L a n c i n g , W e s t S u s s e x , B N 9 9 6 Z L . T h e r e i s n o p o s t a g e t o b e p a i d i f p o s t e d i n t h e U K .

5 . I f y o u r a d d r e s s i s o u t s i d e t h e U K , y o u s h o u l d r e p l y u s i n g t h e r e t u r n a d d r e s s e d e n v e l o p e p r o v i d e d . I f y o u l i v e i n a c o u n t r y c o v e r e d b y t h e I n t e r n a t i o n a l B u s i n e s s R e p l y S e r v i c e , w e h a v e p r e p a i d p o s t a g e o n t h e e n v e l o p e .

6 . C R E S T E l e ct r o n i c P r o xy A p p o i n t m e n t . T o a p p o i n t o n e o r m o r e p r o x i e s o r g i v e a n i n s t r u c t i o n t o a p r o x y ( w h e t h e r p r e v i o u s l y a p p o i n t e d o r n o t ) v i a t h e C R E S T s y s t e m , y o u w i l l n e e d t o s e n d a C R E S T m e s s a g e . I n o r d e r t o b e v a l i d i t m u s t b e

B T G r o u p p l c A N N U A L G E N E R A L M E E T I N G

1 3 J U LY 2 0 1 1

O l d B i l l i n g s g a t e , 1 O l d B i l l i n g s g a t e W a l k , L o n d o n E C 3 R 6 D X

P r o g r a m m e

1 0 . 0 0 a m D o o r s o p e n t o s h a r e h o l d e r s h e l p d e s k a n d r e c e p t i o n a r e a

n d s

1 1 . 0 0 a m M e e t i n g c o m m e n c e s

1 . 0 0 p m M e e t i n g e a p p r o x .

A t t h e m e e t i n g y o u w i l l b e a s k e d t o v o t e o n t h e r e s o l u t i o n s s e t o u t , w i t h e x p l a n a t o r y n o t e s , i n t h e S u m m a r y f i n a n c i a l s t a t e m e n t & n o t i c e o f m e e t i n g 2 0 1 1 . I f y o u d i d n o t r e c e i v e t h i s d o c u m e n t , i t i s a v a i l a b l e o n l i n e a t w w w . b t . c o m / a n n u a l r e p o r t Y o u m a y f i n d i t h e l p f u l t o b r i n g t h i s w i t h y o u t o t h e m e e t i n g . Y o u d o n o t n e e d t o b r i n g a n y o t h e r d o c u m e n t s , e x c e p t y o u r A G M A d m i s s i o n C a r d / P r o x y C a r d o r e m a i l n o t i f i c a t i o n .

Y o u w i l l b e g i v e n t h e o p p o r t u n i t y t o a s k q u e s t i o n s a b o u t a n y o f t h e r e s o l u t i o n s .

t r a n s m i t t e d s o t h a t o u r R e g i s t r a r s , E q u i n i t i , ( I D R A 1 9 ) r e c e i v e i t b y 1 1 a m o n M o n d a y 1 1 J u l y 2 0 1 1 . T h e t i m e o f r e c e i p t w i l l b e t h e t i m e ( a s d e t e r m i n e d b y t h e t i m e s t a m p g e n e r a t e d b y t h e C R E S T s y s t e m ) f r o m w h i c h t h e i s s u e r ' s a g e n t i s a b l e t o r e t r i e v e t h e m e s s a g e . F o r m o r e i n f o r m a t i o n p l e a s e r e f e r t o t h e C R E S T M a n u a l ( a v a i l a b l e a t www . e u r o c l e a r . c o m / C R E S T ) . T h e C o m p a n y c a n t r e a t a s i n v a l i d a C R E S T p r o x y i n s t r u c t i o n i n t h e c i r c u m s t a n c e s s e t o u t i n R e g u l a t i o n 3 5 ( 5 ) ( a ) o f t h e U n c e rt i f i c a t e d S e c u r i t i e s R e g u l a t i o n s 2 0 0 1 .

7 . B T G r o u p E a s y S h a r e ( ' E a s y S h a r e ' ) p a r t i c i p a n t s a r e a b l e t o a t t e n d , s p e a k a n d v o t e a t t h e A G M . T h e s e s h a r e s a r e h e l d t h r o u g h E q u i n i t i C o r p o r a t e N o m i n e e s L i m i t e d ( ' N o m i n e e C o ' ) a n d y o u m a y a t t e n d a s N o m i n e e C o ' s p r o x y . I f y o u a t t e n d t h e A G M , y o u w i l l b e t r e a t e d a s h a v i n g a c c e p t e d t h i s a r r a n g e m e n t . T h i s a l s o a p p l i e s t o j o i n t h o l d e r s .

I f y o u a r e n o t a t t e n d i n g t h e m e e t i n g , N o m i n e e C o h a s a g r e e d t h a t y o u ( o r a n y o t h e r p e r s o n n a m e d j o i n t l y w i t h y o u o n t h i s C a r d ) m a y u s e t h i s C a r d t o i n s t r u c t N o m i n e e C o t o a p p o i n t t h e p r o x y o f y o u r c h o i c e t o a t t e n d a n d v o t e a t t h e A G M o n y o u r b e h a l f . Y o u r i n s t r u c t i o n s w i l l a p p l y t o a l l y o u r B T s h a r es, w h e t h e r o r n o t h e l d t h r o u g h E a s y S h a r e . Y o u c a n g i v e y o u r v o t i n g i n s t r u c t i o n s o n l i n e a t w w w . s h a r e v o t e . c o . u k

8 . B T G r o u p E m p l o y e e S h a r e I n v e s t m e n t P l a n ( ' E S I P ' ) p a r t i c i p a n t s ( a l l s h a r e a n d d i r e c t s h a r e ) . A s a n E S I P p a r t i c i p a n t , y o u d o n o t h a v e t h e r i g h t t o a t t e n d t h e A G M , b u t y o u c a n i n s t r u c t t h e T r u s t e e o f t h e E S I P , E q u i n i t i S h a r e P l a n T r u s t e e s L i m i t e d ( T h e T r u s t e e s ) , t o v o t e t h e s h a r e s t h e y h o l d o n y o u r b e h a l f . T h e T r u s t e e s h a v e a d v i s e d y o u s e p a r a t e l y h o w y o u c a n g i v e i n s t r u c t i o n s f o r t h e s e s h a r e s t o b e v o t e d .

T e a a n d c o ff e e w i l l b e a v a i l a b l e b e f o r e , b u t n o t d u r i n g , t h e m e e t i n g . W e w i l l h a n d y o u a v o u c h e r o n a r r i v al, w h i c h w i l l e n t i t l e y o u t o l i g h t r e f r e s h m e n t s s e r v e d a ft e r t h e m e e t i n g .

O n l y s h a r e h o l d e r s , o r t h e i r a p p o i n t e d p r o x i e s o r r e p r e s e n t a t i v e s , a r e e n t i t l e d t o a t t e n d t h e m e e t i n g . N o n s h a r e h o l d e r s ( w h o a r e a c c o m p a n y i n g s h a r e h o l d e r s ) w i l l b e a d m i t t e d a t t h e d i s c r e t i o n o f t h e C o m p a n y . A n y o n e a c c o m p a n y i n g a s h a r e h o l d e r w h o i s i n a w h e e l c h a i r , o r i s o t h e r w i s e i n n e e d o f a s s i s t a n c e , w i l l b e a d m i t t e d t o t h e m e e t i n g .