Acquisition

BATM Advanced Communications Ld
21 June 2006


For immediate release                                     21 June 2006

                      BATM Advanced Communications Limited

   Acquisition of the business and assets of Metrobility Optical Systems Inc

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.'


Enquiries:
BATM Advanced Communications                             + 972 9866 2525
Zvi Marom, Chief Executive

Threadneedle Communications                              020 7936 9605
Graham Herring


About BATM Advanced Communications
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 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





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