Re Agreement/Alliance

BATM Advanced Communications Ld 1 June 2001 Embargoed for release until 7.00 am 1 June 2001 BATM Advanced Communications Limited BATM signs OEM agreement and strategic alliance for end to end transport and access solutions OEM agreement BATM Advanced Communications Ltd. (LSE: BVC) a leader in mass IP networking has signed an extensive OEM agreement with a leading Scandinavian equipment provider. Under the terms of the agreement, BATM will supply a broad line of Ethernet products including its Titan series of IP switching solutions. BATM was chosen because of its unique technological capabilities, which provide unmatched performance and a quick return on investment. One of the focal points of the agreement is BATM's Titan series switches, which will be used to bolster fiber access networks by providing enhanced end-to-end connectivity, traffic aggregation and service provisioning. Strategic alliance with Siemens In a separate development, BATM also announces that it has entered a strategic alliance with Siemens Information and Communications Networks. BATM will provide Siemens with high-density, multi-layer and multi-service optical IP access solutions networks to drive sizeable amounts of data through fiber optics beyond the network core to the last mile. BATM's IP access solutions combine high-performance, high-density solutions with vigorous management and provisioning capabilities that are paramount for cost-effective seamless networks geared to support current and future network requirements. Dr. Zvi Marom, President and CEO of BATM commenting on these agreements said: 'BATM is pleased to partner with these leading technology companies and provide world-class solutions for fiber access networks. Together we are dedicated to providing customers with complete robust and cost-effective solutions for their current and future needs.' About BATM Advanced Communications BATM is quoted on the London Stock Exchange and develops advanced high-speed routing switches, edge access devices, and photonic-based equipment. BATM Advanced Communications serves customers who are among the world's largest data communications companies, large end-users, distributors and service suppliers in Europe, North and South America, and Asia. For further information please contact: Web site: http://www.batm.com BATM Advanced Communications Ltd Tel: +972 (3) 938 6888 Dr. Zvi Marom, President and CEO Email: zvika@batm.co.il Square Mile BSMG Worldwide Tel +44 (0) 207 601 1000 Edward Macquisten/BeckyJewers Except for the historical information contained herein, BATM Advanced Communications wishes to caution that certain matters, discussed in this news release constitute forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. The Company assumes no obligation to update the information included in this press release.