Re Contract

BATM Advanced Communications Ld
23 May 2006


BATM Advanced Communications Limited ('BATM' or 'the Company')

BATM is pleased to update shareholders on developments in relation to its
successful bid to be a long term supplier of IP equipment to one of the world's
largest suppliers of network equipment for mobile telecommunications ('the
customer').  The Company announced on 24 November 2005 that it had been awarded
a contract for a line of products, with the first stage being a pilot running
during 2006 and 2007 and full deployment starting in 2008.

Since BATM's selection, BATM and its customer have been working very closely
together and are now at an advanced stage of negotiations about extending the
contract to cover a much wider range of equipment.  Accordingly, the total value
of the contract is likely to increase very substantially with the incremental
orders anticipated to amount to tens of millions of dollars annually.  Pilots
would begin in 2007 with full deployment commencing in 2009, under a long term
supply arrangement lasting several years. The timetable for the original line
remains as previously announced.  The customer has also expressed strong
interest in other forms of strategic co-operation with the Company.


Enquiries:

Zvi Marom
BATM
Tel:  [phone]

Graham Shore
Shore Capital
Tel:  [phone]

Amira Bardichev
Global Equity IR
Tel:  [phone]



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