Internet Protocol Telephony System to be Developed

BATM Advanced Communications Ld
13 December 1999


             BATM ADVANCED COMMUNICATIONS LTD ('BATM')
                                 
      To develop complete Internet Protocol Telephony System

BATM  Advanced Communications is pleased to announce that  it  has
finalised  the  arrangements for the  development  with  3M  of  a
complete voice over IP (Internet Protocol) communication system to
run  over  local  and  wide area networks (LANs  and  WANs).   Our
partner,  3M, has committed US$1.1m to the development budget  and
intends  to market the system under the Volition brand.  BATM  are
providing  the  technological  and  software  input  for  a  fully
functional IP handset.

The  system will use either the Company's Titan T4 or T5  switches
as  its principal active component and when launched the Titan  T6
will also support the system.  We have written in-house management
software  for the Titan family to supply normal PABX functionality
(layer  3 and layer 4 functions).  Speech quality offered  by  the
system  is comparable to that offered by standard circuit switched
telephone  systems. BATM intends to provide sample  quantities  of
the  IP  telephone to potential early customers by the end of  the
first  half of 2000.  We expect to offer the new system using  the
Titan  family  at a substantially lower cost than competing  voice
over IP offerings.

Dr  Zvi Marom, Chief Executive, said 'We are delighted to be  able
to  announce  another  important piece of the  jigsaw  of  our  IP
offering.   BATM will be offering voice, video and data  using  IP
with  our  existing and future equipment designed to  offer  fast,
high  quality communications for all three modes.  The  advantages
of IP telephony are clear to our customers.  In providing a system
which should offer high quality voice functionality this agreement
gives us an excellent chance to become a major player in this  new
market.'


For further information contact:               http://www.batm.com

Dr Zvi Marom
BATM Advanced Communications Ltd
00 9723 938 6888

Mark Smith
Dresdner Kleinwort Benson
0207 623 8000

Graham Shore
Shore Capital and Corporate Limited
0207 734 7293

Edward Macquisten
Ludgate Communications
0207 253 2252