Chris Alliott Results Quotations

We believe these are strong results from BT and that they should be well received by the market... there is more to BT than revenues. We believe these results from BT confirm that view.

BT's 2Q 05/06 results would appear at first glance to be bang in line with our below-consensus expectations. But slightly more-than-expected margin weakness and lower cash flow is unlikely to be taken well. Our sell rating is maintained.