LONDON, July 5 /PRNewswire/ --     Post Office(R) HomePhone - the landline telephone service
which offers the cheapest line rental on the high street - now offers even
better value as it unveils a new price and service package from 1 July 2007.

The new deal offers customers FREE evening and weekend calls
to UK landlines(1) and FREE calls at ANY time to another HomePhone line(2).

Other benefits include:

- The cheapest monthly line rental on the high street - only
GBP9.95 a month line rental (when paying by direct debit) - offering savings
of GBP12.56 annually compared to BT Option 1)

- Great value daytime calls on the market - 3p per minute

- Low call rates to mobiles

- 10 per cent saving on calls to ten phone numbers you
nominate as your "Loved Ones" and free 60 minute calls on their birthdays and
at Christmas

- No minimum term contract necessary

- Freephone 24 hour customer care line

- No need to change your number

- Easy to pay your bill using cash, cheque or debit card at
your local Post Office(R) branch, by telephone or by post

- No late payment fees

Post Office(R) head of telephony Martin Moran said: "This is a
great deal for customers. We want the Post Office(R) telecoms offer to be one
of the best value deals in the market and our HomePhone package sets a great
benchmark. When taken as a whole, it's the best deal you can get from a brand
you can trust."

HomePhone has already won more than 400,000 customers with the
lowest line rental prices of any major provider. To find out more call 
0800-092-0500, visit www.postoffice.co.uk or ask at any of our 14,000 Post
Office(R) branches.

Work is also underway by the Post Office(R) to launch a
broadband service in the autumn that will compete head to head with the major
players in the market by offering a great value for money deal.

About Post Office HomePhone

The Post Office(R) HomePhone service was launched in January
2005 and has quickly become one of the fastest growing residential telephony
providers.

HomePhone is committed to offering a simple, transparent service and was
the first alternative provider to offer a single itemised bill for both line
rental and call charges.

The Post Office(R) also offers a range of other great value telephony
products and services:

Post Office(R) 118855

Its directory enquiries service - 118855 - offers one of the most
competitive prices on the market with all calls charged at a flat rate of 40p
(no per minute charges). Customers can get two searches per call and free
text back to mobile.

Phonecards and E Top-ups

Post Office(R) branches offer a range of great value domestic and
international phonecards and a convenient E Top-up service for mobile phones.

Post Office Ltd Registered in England and Wales no: 2154540 Registered
Office: 80-86 Old Street London, EC1V 9NN

The Post Office and the Post Office symbol are registered trade marks of
Post Office Ltd in the UK and other countries

For the purposes of products regulated under the Financial Services &
Markets Act 2000, Post Office Ltd is an appointed representative of Bristol &
West plc, who are authorised and regulated by the Financial Services
Authority. Registered in England no. 2124201. Registered Office: Bristol &
West plc, One Temple Back East, Temple Quay, Bristol, BS1 6DX.

Post Office (R), car and home insurance is administered by BISL Limited,
who are authorised and regulated by the Financial Services Authority,
Registered in England No 3231094.Registered office: Pegasus House, Bakewell
Road, Orton Southgate, Peterborough, PE2 6YS.

Card Account offered by J.P. Morgan Europe Ltd through Post Office Ltd.
J.P. Morgan Europe Ltd is authorised and regulated by the Financial Services
Authority. Registered in England and Wales No. 938937. Registered Office: 125
London Wall, London, EC2Y 5AJ



(1) Applies to calls made in the evenings between 6pm and 6am and at the
weekend between Friday 6pm and Monday 6am to UK landlines up to 60 minutes
long; they are charged at standard rate of 3p per minute at all other times.
Customers can redial after 60 minutes during the free periods to avoid
incurring any charges.

(2) Applies to calls made to HomePhone landlines up to 60 minutes long at
any time; they are charged at 3p per minute thenafter . Customers can redial
after 60 minutes to avoid incurring any charges.

www.postoffice.co.uk