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BATM Buys Metrobility

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LONDON - BATM Advanced Communications Ltd ("BATM") announces that it has agreed to acquire the business and assets of Metrobility Optical Systems Inc ("Metrobility") for a total consideration of $6.85 million payable in cash over the next two years. $3.15 million will be paid upon closing, which is expected by 15 July 2006, an additional $1.9 million will be paid 12 months after closing and $1.8 million at the end of the second year after closing.

Metrobility, headquartered in Merrimack, New Hampshire, is a privately held company that develops, manufactures and markets optical Ethernet equipment focused on accelerating the deployment of carrier-class Ethernet services to business users. The acquisition of Metrobility will strengthen BATM's sales and distribution channels within the US and South American markets. In addition, the products offered by Metrobility are complementary with the existing BATM's Ethernet access product range.

In the last financial year to 31 December 2005, the Metrobility business and assets being acquired generated revenue of US$11.8 million and a loss before taxes of US$1.2 million. Following the rapid integration of Metrobility with Telco Systems, it is expected that the integration will have a positive contribution to Telco Systems' business going forward. The gross assets being acquired were valued at approximately US$3.9 million as at 31 December 2005.

Commenting on the acquisition, Dr. Zvi Marom, CEO of BATM, said: "We are delighted to welcome the Metrobility team to BATM. Their products and customer base complements Telco Systems' offerings in the US. We look forward to completing the integration as soon as possible."

BATM Advanced Communications Ltd. (London: BVC)

Metrobility Optical Systems

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