Re Agreement

BATM Advanced Communications Limited                      

   OEM Supplier Agreement with Alcatel and new contract with major European    
                                    carrier                                    

BATM Advanced Communication (LSE: BVC), an industry leader in network edge
technology and IP switching platforms, today announced a major OEM supplier
agreement with Alcatel, the global telecoms infrastructure supplier. Under the
terms of the agreement, Telco Systems (a wholly owned BATM subsidiary) will
supply Ethernet products to Alcatel. BATM was chosen because of its unique
technological capabilities and the superior cost / performance characteristics
of its products.

Dr. Zvi Marom, BATM's CEO said: 'It's a great privilege for us to work with a
market leader like Alcatel. Combining their extensive suite of products with
our Ethernet products, will create a winning package for the bids for new
generation networks which telcos are increasingly inviting. This agreement with
Alcatel is another step forward in our relationship with leaders in the
communications world. We believe that the BATM reputation for quality and
reliability is, and will continue to be, the cornerstone of our achievements in
this fast paced industry. We have good reason to believe that additional
positive steps will be made in the near future'.

BATM is also pleased to report an additional success from this cooperation. A
major European carrier has chosen to deploy an Alcatel / BATM solution in its
network. As part of a multi service access network contract, Alcatel will
supply service extension nodes, including members of the BATM T5 Compact-Layer
3 family.

Enquiries:

BATM Advanced Communications                                                   
                                                                               
Ofer Bar Ner - COO                  [phone]                            
                                                                               
Nitsan Mor - MarCom                 [phone]         [e-mail] 
                                                                               
Financial Dynamics                                                             
                                                                               
James Melville-Ross                 [phone]                           
                                                                               

About BATM Advanced Communication

BATM is a world leader in the design and supply of IP packet-based systems such
as high-capacity, self-routing switches with extensive QoS capabilities. For
more information, visit the BATM Advanced Communications web site at 
www.batm.com

Telco Systems is a wholly owned subsidiary of BATM Advanced

Communications (London Stock Exchange ticker symbol: BVC).
Based in Foxboro, Massachusetts, the company provides industry-leading
networking solutions to the carrier and enterprise markets. Telco Systems'
focus is to maximize the power of customers' networks by integrating transport,
access, and packet technologies onto industry-leading platforms, therefore
fully meeting today's and tomorrow's network requirements. For more
information, visit the Telco Systems web site at www.telco.com

About ALCATEL

Alcatel provides communications solutions to telecommunication carriers,
Internet service providers and enterprises, delivering voice, data and video
applications to their customers. Alcatel leverages its leading position in
fixed and mobile broadband networks, applications and services to bring value
to its customers in the framework of a broadband world. Alcatel operates in
more than 130 countries. For more information, visit them on the Internet : 
www.alcatel.com