New of New Product Developments

BATM Advanced Communications Ld 20 January 2000 BATM Advanced Communications Limited NEW PRODUCT DEVELOPMENTS BATM Advanced Communications Limited ('BATM' or the 'Company'), the Israeli high technology networking company is pleased to announce that it will unveil a number of new developments at CeBIT, Hanover on 24th February 2000. These include a working demonstration of its photonic switching technology and the launch of a new product, the Titan T5 QS. Photonic Switching In conjunction with its partner, Lynx Photonics, BATM intends to demonstrate a working prototype 8x8 photonic switch at CeBIT, connected to and switching a live communications network. Progress in this area encourages us to believe that the first version of the Titan T8 will be offered earlier than previously anticipated. Load Balancing / Quality of Service Products The Titan T5 QS is a hybrid product developed in response to the urgent requests from major telecom customers for an advanced routing switch in advance of the launch of the Titan T6. The product is based on the Titan T5 platform, but offering the advanced load management and quality of service features which we have developed for the T6. Combining these advanced capabilities into our fastest current product enables us to offer an advanced self-routing switch delivering a multitude of features including packet connections over SONET/SDH and VDSL. The advanced features include Enhanced Load Balancing (ELB) and quality of service management. The ELB facility enables the switch to distinguish between the nature of the traffic - voice, video or data. Having classified the traffic, it is then able to optimize its delivery by taking into account its characteristics. The Titan T5 QS will begin to ship in March 2000 with production geared up by the end of June 2000. Again, in response to customer requests, the Company is also planning to offer a product family called the 'Spartan' offering ELB capability to third party networking product companies on a similar timescale. For further information please contact: www.batm.com BATM 00 972 3 938 6888 Ofer Bar-Ner, Chief Financial Officer Dresdner Kleinwort Benson 0207 623 8000 Mark Smith Shore Capital and Corporate Limited 0207 408 4090 Graham Shore Ludgate Communications 0207 253 2252 Edward Macquisten