Distribution Agreement

BATM Advanced Communications Ld
21 May 2007



                      BATM Advanced Communications Limited

           BATM signs agreement with major Japanese distributor

BATM Advanced Communications Limited (LSE: BVC) ('BATM'), a leading designer of
broadband data and telecoms systems, announces that it has signed a distribution
agreement with CTC, one of the largest distributors to the Japanese technology 
market.

Having passed all of CTC's rigorous technical testing processes, CTC will now 
distribute BATM's products and solutions through its sales channels, which 
achieved revenues of 294bn Yen (circa £1bn) for the year ended 31 March 2007. 
CTC is currently the number one vendor to the Japanese market of Sun 
Microsystems, EMC, Avaya, Hewlett Packard, Network Appliances, Symantec and 
various BEA Systems' Weblogic applications, as well as the number two vendor of 
Cisco Systems.

Deployment of BATM's products is expected to commence towards the end of this
year and is unlikely therefore to have a material impact on this year's trading.

Dr. Zvi Marom, Chief Executive of BATM, said: 'Japan represents the second 
largest market in the world's technology industry and we are delighted to have 
signed this agreement with CTC. Whilst we have been in discussions with the 
company for some months the decision to distribute BATM's products came much 
sooner than we could have anticipated, which is testament to the outstanding 
quality of our offering. This agreement means that BATM now has a truly global 
reach into the most exciting markets worldwide.'


Enquiries:

BATM Advanced Communications                                    [phone]
Dr Zvi Marom, Chief Executive

Threadneedle Communications                                     [phone]
Graham Herring / Josh Royston

Kaupthing Singer and Friedlander Capital Markets ltd            [phone]
Nicholas How / Marc Young

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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