Re Contract

Embargoed for release at 7 am, 17 March 2005

                     BATM Advanced Communications Limited                      

                               New contract win                                

BATM Advanced Communications Limited (LSE: BVC), a leading designer and
producer of broadband data and telecoms systems, announces that its subsidiary,

Telco Systems, has received an order for 20,000 units of its Access211 VoIP
Broadband Gateway from a US provider of Internet phone services. The contract
will be worth $1.3m to BATM to be recognised during the first half of 2005.

The Access211 Gateway enables service providers to provide their residential
and small office home office (SOHO) customers with a high-quality VoIP service
using traditional analog telephones and fax machines.  It is a cost-efficient
means for service providers to migrate their customers' traditional analog
telephones and fax machines onto IP-based networks.  Access211's embedded
routing capabilities further reduce costs by eliminating an external router and
ease installation, maintenance and management. 

Zvi Marom, BATM's Chief executive, commented, 'This latest order represents the
largest in a stream of orders from this service provider that began in the
fourth quarter of last year. Introduced in 2004, the Access211 has been well
received by many new service providers in this emerging market space. This
order, which is expected to be deployed during the first half of 2005,
underlines the early success of this product.'

Enquiries:                                                                     
                                                                               
BATM Advanced Communications            020 7831 3113 (on 17.3.05)             
                                                                               
Dr Zvi Marom, Chief Executive                                                  
                                                                               
Ofer Bar Ner, Chief Financial Officer                                          
                                                                               
Financial Dynamics                      020 7831 3113                          
                                                                               
James Melville-Ross / Cass Helstrip