BATM Advanced Communications Ld
25 April 2000
BATM Advanced Communications Limited ('BATM')
BATM announces memorandum of understanding and minority equity
investment by Sun Microsystems Inc. ('Sun')
BATM has today entered into a memorandum of understanding
('MOU') with Sun regarding a proposed strategic relationship
with the purpose of bringing the companies closer together.
The MOU states that the two companies intend to negotiate
agreements, including mutual product supply and technology co-
operation.
Sun will also make a minority equity investment in BATM of
approximately £6.1 million in accordance with the terms of an
option agreement offered to Sun on 27 January 2000. Sun will
purchase 160,123 new ordinary shares of BATM at a purchase
price of £38.12 per share. Application has been made to the
London Stock Exchange for the new ordinary shares to be
admitted to the Official List. The new ordinary shares are
expected to commence trading on Tuesday, 25 April 2000.
As announced on 14 March 2000, BATM has been in preliminary
discussions with Sun for several months regarding their
ongoing business relationship. The MOU entered into sets out
the current mutual intent of both companies regarding their
proposed strategic relationship. Further discussions are on
going regarding definitive agreements.
Commenting on the agreements, Zvi Marom, Chief Executive said:
'It is a privilege for us to work with Sun, a world leader in
internet infrastructure products and services. We intend to
bring together innovative products that will open new
opportunities for the internet user community. We believe that
we will be able to open new dimensions in cost/performance and
technological innovation.'
For further information:
BATM www.batm.com
Zvi Marom, Chief Executive 00 972 3 938 6888
Ofer Bar-Ner, Chief Financial
Officer
Dresdner Kleinwort Benson 020 7623 8000
Mark Smith
Shore Capital and Corporate 020 7408 4090
Limited
Graham Shore
Ludgate Communications 020 7253 2252
Kate Jackson