BT today announced it has entered into an agreement to begin construction next month of an approximately 500 kW-AC solar photovoltaic system for its North American corporate headquarters site, located in the City of El Segundo, California. Once the system is fully operational by late summer, BT expects to reduce carbon emissions by 642,000 pounds (291.2 metric tons) annually as well as decrease its overall power costs for the site in future years. The system has qualified for rebates under the California Solar Initiative.

Through a competitive bidding process, BT selected EI Solutions to design the solar system, procure the equipment, obtain governmental approvals as well as install, monitor and maintain the system. The system will be purchased, owned and operated by Solar Power Partners, Inc. (SPP), with the solar- generated electricity sold to BT under a Power Purchase Agreement. BT will purchase 100 percent of the energy output of the system for a fixed term, which will equate to approximately 15 percent of BT's energy requirements for the site. Broadreach Capital Partners, the site's owner, has also been a key participant in BT's efforts to bring renewable energy to its Americas' headquarters location.

The solar power system is designed to maximize energy production, with the vast majority of the system's approximately 2,000 solar modules mounted on top of a state-of-the-art, elevated single-axis tracking system to be installed above the site's south facing parking lot. Once completed, the system will be among the largest of its type in Southern California and is expected to generate approximately 917,000 kWh per year. According to Environmental Protection Agency figures, the solar power system is expected to reduce carbon emissions equivalent to removing 63 automobiles from operation for one year or planting 243 acres of trees or powering more than 150 average-sized California homes for 12 months.

"Our BT Americas' headquarters site in California was an ideal location for a solar power system due to its large, unobstructed, south-facing areas," said Michael Boustridge, president, BT Americas. "That, factored with BT's overall global climate change strategy, the pressing need for our industry to cut carbon emissions and the leadership of California Governor Arnold Schwarzenegger and the City of El Segundo's mayor and officials, helped us easily decide to pursue a solar plan for our energy requirements at the site."

"We are very excited to be working with BT, a company that has consistently shown its leadership in working to reduce its environmental impact," said Andrew Beebe, president of EI Solutions. "By embracing solar as an energy alternative, BT is setting a great example of how a company can be environmentally responsible in an economically sound manner."

"The BT project is an exciting and innovative example of how proactive companies can embrace clean energy. This project will be a showcase, and we look forward to great success with BT and EI Solutions," said Alexander v. Welczeck, CEO of Solar Power Partners. "SPP is proud to help enable this solution and to be working closely with BT to help them achieve their goals."

Since 1996, BT has reduced its UK carbon emissions by 60 percent and is committed to extending that reduction to 80 percent (against 1996 baseline) by 2016. As part of its global climate change strategy, BT announced in October plans to develop wind farms aimed at generating up to 25 percent of its existing UK electricity requirements within the next nine years. The wind farm project represents the UK's largest corporate wind power project outside of the energy sector. Additionally, BT continues to implement reductions in its overall energy consumption globally, particularly in data centers through techniques such as server consolidation, virtualization and redesign of power supplies.

About 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 local, national and international telecommunications services to our customers for use at home, at work and on the move; 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 pounds Sterling with profit before taxation of 2,484 million pounds.

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.

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