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Motorola Selected as Lead Supplier for Next-Generation of BT Vision Set-Top Boxes

CES - LAS VEGAS – 7 January 2008 - BT has selected Motorola as the lead supplier of next-generation set-top boxes for its BT Vision digital TV service, it was announced today.

Motorola will supply BT with second-generation V-Boxes boasting a new look, the potential for substantially improved energy efficiency and enhanced capabilities for deployment in 2009.

The HD-capable V-Box digital TV recorder will provide access to up to 40 Freeview TV channels and 30 radio channels, the ability to record an average of 80 hours of content, on-demand access to a huge library of films, TV shows, music videos and sport and a range of interactive applications.

Dan Marks, BT Vision CEO, welcomed the deal: “Motorola has extensive experience in IPTV and particularly in working with our platform partner Microsoft on deployments of Microsoft® Mediaroom™ around the world.”

“Today’s announcement will lead to the development of a new set-top box to take full advantage of the increasing capabilities of the Microsoft Mediaroom platform and of the most recent advances in chipset technology. This underpins our medium-term goal of securing 2-3 million customers for BT Vision.”

Joe Cozzolino, corporate vice president and general manager Motorola Home & Networks Mobility EMEA said: “We are proud and excited to be selected by BT to develop its new set-top box. As consumers demand more choice, convenience and control over how they watch TV, service providers like BT require the latest technology innovations to help satisfy this discerning audience. We look forward to working closely with BT to further drive development of IPTV in the UK.”

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About BT
BT is one of the world’s leading providers of communications solutions and services operating in 170 countries. Its principal activities include networked IT services; local, national and international telecommunications services; higher-value 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 2007, BT Group plc’s revenue was £20,223 million with profit before taxation of £2,484 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

About BT Vision
BT Vision is available to anyone with a BT Broadband connection with suitable minimum line speed and a BT Home Hub. It offers a free HD-ready set-top box, known as the V-Box, which includes all the 60 or so Freeview TV and radio channels, an inclusive digital video recorder (DVR) of up to 80 hours which allows viewers to pause and rewind live TV, and offers instant viewing of thousands of hours of great entertainment, including blockbuster and classic movies, cartoons, music and TV programmes. For more details please go to www.bt.com/btvision.

The V-box is free for new broadband customers or existing customers re-contracting for 12 months (18 months with Option 1) – otherwise £199. A connection fee of £30 and engineer installation of £60 applies, or Vision can be self-installed for just the connection fee of £30.

Services including live Setanta Sports action require a decoder card.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of seamless mobility, the people of Motorola are committed to helping you connect simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of $42.8 billion in 2006. For more information about our company, our people and our innovations, please visit www.motorola.com

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