Re Contract

9 May 2005

                     BATM Advanced Communications Limited                      

                       BATM Announces Defence Contracts                        

BATM Advanced Communications Limited ('BATM') is delighted to announce that,
under the terms of the contract previously announced with the Israeli Defense
Forces ('IDF'), it has received the first order of IP devices for the IDF's
Futuristic IP Network.

Under the terms of the order, BATM will supply enhanced IP products with
capabilities to provide high security and a rich feature set to meet and exceed
the IDF's stringent requirements. BATM's new series of IP switch / routers will
enable the IDF to increase its core network's bandwidth and supply secured,
high capacity services to its headquarters and military bases as well as to
various units.

The initial order, which is for about $600,000, is the first under this US$
multi-million contract. It is to be supplied during 2005 and further orders are
expected in due course.

BATM is also delighted to announce that it has received a trial order from the
air force of a major western nation for its award winning VoIP units. The first
shipment is expected at the end of Q2 or shortly thereafter. BATM sees this
initial order as indication that its VoIP products, which are already gaining
momentum in the telecom market, have substantial potential in other markets.

Zvi Marom, chief executive of BATM, said:

'We are delighted to begin the fulfillment of the IDF contract win. It is a
landmark contract and has opened the door for sales to other defence forces.
The trial order from this major air force could lead to much more significant
business.'

BATM will update further on these prospects in due course.

Enquiries:                                                                     
                                                                               
BATM Advanced Communications            [phone]                         
                                                                               
Dr Zvi Marom, Chief Executive                                                  
                                                                               
Financial Dynamics                      020 7831 3113                          
                                                                               
James Melville-Ross / Cass Helstrip