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Global Deployment Will Enable BT to Reduce HR Support Costs and Improve Service Delivery

Reading UK - PeopleSoft Inc. (Nasdaq: PSFT) today announced that British Telecom (BT), one of Europe's leading providers of telecommunications services, will deploy PeopleSoft® Enterprise Human Capital Management (HCM) to manage its worldwide workforce. To support its global initiative to institute fundamental change within human resources strategy and IT solutions, PeopleSoft HCM will enable BT to deliver more proactive support and services to its almost 100,000 global employees and align employee performance with strategic business objectives.

BT, one of the largest non-government employers in the UK, chose PeopleSoft to bring efficiencies to its total spend on human resource management. PeopleSoft HCM will enable BT to gain visibility into multiple HR functions throughout the enterprise. For example, BT’s HR managers can instantly go online and assign assessments or training and manage resource allocation - in real time. Line managers can instantly ensure that employees are assigned to the appropriate project and the HR team has an ongoing up-to-date history of each employee and skill sets. In addition, PeopleSoft’s applications will become a crucial tool for financial management and HR managers as they align tactical activities of existing personnel to the company’s strategic goals. As a result, BT’s HR staff can focus on value-added functions such as improved training, performance management and monitor workforce performance across the enterprise.

PeopleSoft’s Workforce Performance Management aims to make every employee a competitive asset by combining HCM and Enterprise Performance Management capabilities. The solution helps CEOs track how their workforce is performing against specific goals and objectives, allowing CFOs and COOs to evaluate investments in recruiting, education, redeployment and incentive plans, against their direct impact on revenue attainment and operating efficiency.

“To improve productivity and ultimately customer service, HR executives need a comprehensive view of performance data to make intelligent staffing and rewards decisions. The PeopleSoft solution, through its unique Workforce Performance Management functionality and self-service tools, will enable BT’s HR community to provide increased support to the business and maximise employee value, ” said Margaret Savage, director, HR Strategy, BT. “PeopleSoft is helping us to optimise productivity through the use of the right technology.”

BT will deploy a number of industry-leading PeopleSoft solutions including PeopleSoft HCM, Business Application Warehouse and its industry leading Enterprise Services Procurement solution. Together, these comprehensive solutions ensure that there is optimal effectiveness of employees to drive better operating and financial performance.

“We are pleased to be able to work with a telecommunications leader such as BT to help grow its reputation as a leader in the HR services it provides to its employees,” said Crosbie Burns, vice president and managing director, PeopleSoft UK and Ireland. “An important part of this project is that it leverages diverse aspects of the PeopleSoft solution - HR, Labour Procurement and Enterprise Performance Management - to deliver significant business value and real ROI to BT. PeopleSoft delivers a solution that will enable BT to stretch the boundaries of workforce management.”

PeopleSoft is the current worldwide standard for Human Capital Management. PeopleSoft’s HCM suite is currently in use by half of the Fortune 500. The company’s HCM solutions enable companies to improve workforce performance, reduce administrative HR costs and streamline employee access to key corporate services and self-service personnel data. PeopleSoft, working with Accenture, will implement the system across BT’s global operations over the next year.

ENDS

About PeopleSoft
PeopleSoft (Nasdaq: PSFT) is the world's second largest provider of enterprise application software with 12,000 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com <http://www.peoplesoft.com>.

About BT Group
BT Group plc is the listed holding company for an integrated group of businesses providing voice, data and video services in the UK and elsewhere in Europe. British Telecommunications plc, a wholly-owned subsidiary of BT Group, holds virtually all businesses and assets of the BT group. BT is one of Europe's leading providers of telecommunications services. Its principal activities include local, national and international telecommunications services, higher-value broadband and internet products and services, and IT solutions. In the UK, BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other licensed operators.

BT consists principally of three lines of business:

BT Retail, serving businesses and residential customers and including BT Openworld, one of the UK's leading ISPs.

BT Wholesale, providing network services and solutions within the UK, including ADSL, conveyance, transit, bulk delivery of private circuits, frame relay and ISDN connections.

BT Global Services, BT's managed services and solutions provider, serving multi-site organisations worldwide. Its core target market is the top 10,000 global multi-site organisations with European operations.

There are a number of other businesses within the BT group, including BT Exact, an internationally renowned centre of excellence in IT and networking technologies. It is also BT's technology and research and development division. In the year ended 31 March 2003, BT's turnover was £18,727m, with profit before goodwill, exceptional items and taxation of £1,829m. For more information, visit: www.bt.com <http://www.bt.com>

For more information or to speak to someone from PeopleSoft, please contact:
Rebecca Dean or Kristen Lazur
Insight Marketing & Communications Ltd
Tel: 01625 500 800
rdean@insightmkt.com or klazur@insightmkt.com



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