Telco Systems Acquired from World Access

About this update from Batm Advanced Communications Ltd.

BATM Advanced Communications Ld 10 April 2000 BATM ADVANCED COMMUNICATIONS COMPLETES PURCHASE OF TELCO SYSTEMS FROM WORLD ACCESS BATM Advanced Communications Acquires Telco Systems in a Deal Valued at $330 Million ATLANTA, GEORGIA - April 7, 2000 - World Access, Inc. (Nasdaq: WAXS) announced today that it has completed the sale of Telco Systems, Inc. to BATM Advanced Communications Limited (London Stock Exchange: BVC) for $260.8 million in cash and 960,000 shares of BATM stock. Telco Systems, based in Norwood, Massachusetts, manufactures network transport and access solutions for leading telecommunications service providers. BATM, based in Rosh Ha'ayn, Israel, is a fast-growing data communications technology company that is quickly establishing a global leadership position in next generation data communications equipment, including edge access devices, multi-protocol switches, fiber-based networking equipment and IP mux switching solutions. John D. Phillips, Chairman and Chief Executive Officer of World Access, said, 'The sale of Telco Systems represents a major step in our plan to add approximately $450 million in net cash to our balance sheet through the divestiture of our Equipment Group. This financial strength should allow us to aggressively pursue our strategy to establish a leadership position in the rapidly growing European telecommunications market. With our recent acquisitions of FaciliCom International and NETnet International, and our pending mergers with Star Telecommunications and WorldxChange Communications, World Access will likely have an annual service revenue run rate in excess of $2.5 billion. We expect the Star and WorldxChange mergers to close early in the third quarter of this year.' 'BATM designs and manufactures high performance data communications systems that have been consistently praised for their innovative technology and high quality. We've been extremely impressed with BATM's financial performance over the past year and believe that Dr. Marom and his team will continue to develop revolutionary new switching and integrated access solutions that will quickly establish them as a major player in the worldwide data and telecommunications markets.' Dr. Zvi Marom, Chief Executive Officer of BATM, said, 'BATM's acquisition of Telco Systems is consistent with our stated strategy of establishing a stronger presence in the U.S. teleco...

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