Trading Update & Contract Win

BATM Advanced Communications Ld
1 July 2002


Embargoed for release at 3.30pm: 1 July 2002


                BATM Trading Update and Major Contract Award


Following the completion of the first half of the year, BATM Advanced
Communications Limited  (LSE: BVC), a leading designer and producer of broadband
data and telecoms systems, today updates shareholders on current trading.  It is
also pleased to be able to announce that BATM has been awarded a major contract
(worth $33m over 3 years) by a leading regional Bell operating company in the
United States to be its exclusive supplier of certain access equipment.

Trading conditions are tough at present and make it difficult to predict
performance in the next few months.  BATM expects to announce its interim
results in early September and anticipates turnover for this period will be
approximately 20% lower than current market forecasts, primarily because of a
further weakening in the key US market. The reduction in turnover also reflects
the extra caution we have taken in avoiding business where the collection of
debt might be in doubt.  However, BATM believes that trading losses for the half
year ended 30 June 2002 will be in line with market expectations.

The Company believes that the weakness in the telecom sector will continue
throughout the year 2002, but is confident that as soon as recovery starts it
will emerge significantly stronger and well positioned in the market, as
demonstrated by the award of the major contract described below.  The short term
impact of continuing market weakness is that both turnover and profitability for
the full year are likely to be significantly below current expectations,
although there may be scope for improvement on this from possible further
orders.    BATM benefits from having a strong cash position without any debt:
cash and money market investments at 30 June 2002 were at a similar level to the
over $56m reported for the full year, and the Company is therefore
well-positioned to ride out the current tough market.

In that context, the Board is pleased to announce that Telco Systems, a wholly
owned subsidiary of BATM, has just signed an exclusive $33 million three year
agreement with a leading regional Bell operating company ('RBOC') in the US to
be its sole provider of certain Edge Access devices and multiplexers. These
products will be used by the RBOC in its regional inter-office core network and
also in installations in customers' premises.  This agreement is for a
three-year period and is expected to generate $33 million of revenues for BATM
over that period, demonstrating that BATM is well placed to win significant
contracts for its products where there is demand.

Zvi Marom, CEO of BATM, said:

'Conditions in the telecommunications market remain extremely tough for everyone
and we do not anticipate an upturn until 2003 at the earliest. We do not
therefore believe that our original targets for 2002 are now achievable.
However, being able to announce this substantial new deal in these conditions
validates the pre-eminence of BATM's technology. This technological
pre-eminence, together with our strong financial position, will continue to
stand us in good stead for the future able to fully capitalise on an upturn in
market conditions as it arises.


Enquiries:


BATM Advanced Communications                                 [phone]
Dr Zvi Marom, Chief Executive
Ofer Bar-Ner, Chief Financial Officer

Financial Dynamics
James Melville-Ross/Alastair Hetherington                    0207 831 3113



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