BATM acquisition of assets

BATM Advanced Communications Ld
26 July 2005

             BATM acquisition of assets from next generation access
                               equipment supplier


London, 26 July, BATM Advanced Communications Ltd ('BATM'), a leading designer
and producer of broadband data and telecoms systems, today announces that it has
entered into an agreement with the directors of Integral Access Inc, to acquire
certain assets of the company.  Integral Access, headquartered in Chelmsford
Massachusetts, is a privately held company that develops, manufactures and
markets next generation access equipment for the delivery of integrated business
and residential services by service providers.


The assets to be acquired will be integrated into Telco Systems', (BATM's wholly
owned subsidiary), current product portfolio.  The value of the gross assets
acquired is $3.2 million.  Integral Access was loss-making in the year ended
31st December 2004, largely due to research and development expenditures.  BATM
is making an initial non-refundable payment of $200,000 for the purchase of the
assets.  In addition, BATM has agreed to make a further payment based on
turnover performance over the next three years, subject to a maximum of $2.1
million.  The consideration payable will be satisfied from existing cash
balances.


The acquisition will enhance BATM's existing customer relationships and expand
its product offering.





Enquiries:


BATM Advanced Communications


Ofer Bar Ner - CFO                     [phone]




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
(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



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