BT today announced it has made a recommended cash offer for PlusNet,
offering 210p per share, valuing the company at approximately £67m.

The offer for PlusNet fits perfectly with BT's strategy of providing its
customers with the most that broadband can deliver. Broadband is
increasingly becoming more than just fast internet access and PlusNet has a
strong reputation for both customer service and innovation.

Operating since 1997, PlusNet was listed on the Alternative Investment
Market in 2004. It has grown rapidly during the last few years and now has
close to
200,000 broadband customers as well as an additional narrowband customer
base. If the offer is accepted, PlusNet will retain its brand and distinct
identity. It will continue to operate from its base in Sheffield and Lee
Strafford will remain its CEO. For the 12 months to 30 June 2006 the company
had revenues of £41m, EBITDA of £7.5m and net income of £3.9m.

BT Retail chief executive, Ian Livingston said: 'This offer makes great
sense for BT. We already provide the UK's most popular and best-performing
ADSL broadband service and this acquisition will ensure that even more
people can enjoy our market-leading services. PlusNet's customers and
employees will benefit from the combination of PlusNet's excellent platform
and access to BT's resources and technology development.'

Lee Strafford, CEO of PlusNet said: 'I am pleased to announce BT's offer
this morning. Whilst the PlusNet Directors continue to believe that PlusNet
is a high
quality business, our sector is consolidating and there are considerable
benefits to PlusNet in becoming part of BT. BT recognises the importance of
retaining PlusNet's identity and culture and I believe this will give rise
to exciting opportunities for PlusNet, our customers and our employees.'

The directors of the company, having unanimously recommended the offer, have
provided irrevocable undertakings to accept BT's offer.'

From [url]http://www.investegate.co.uk/Article.aspx?id=200611160701041717M[/url]

Regards
Sunil