Mobile communications is an explosive growth area for BT and our family of alliances. BT Cellnet in the UK and Cegetel's subsidiary, SFR, in France now have over four million customers each. Airtel in Spain has over two million customers and, in the Republic of Korea, LGT grew its customer numbers by 60 per cent Ð or 900,000 customers Ð in the six months to March 1999. We are also at the forefront of technological developments in mobile communications. In the business solutions world, we manage networks for organisations, through Syncordia Solutions, and design integrated business systems, through Syntegra. Together, these businesses grew by more than 20 per cent in 1998/99. All of these investments and operations are underpinned by our research and development, on which we spent £268 million in 1998/99. BT's laboratories have now amassed more than 13,000 patents around the world. 1999/2000 promises to be an even more exciting year, as competition and innovation galvanise our industry and the new Millennium begins. Communications will be in the spotlight. And, with your continued support, BT will continue to take its opportunities to shine. SIR PETER BONFIELD Chief Executive