Re Contract

BATM Advanced Communications Ld
16 October 2000


              BATM Advanced Communications Limited

BATM  is pleased to announce that, following a successful  trial,
the  company has entered into a purchase agreement for  its  VDSL
products  with a distributor of telecom services in  Scandinavia.
Both   parties   anticipate   generating   initial   orders    of
approximately $0.5M during the next 12 months.

Dr.  Zvi  Marom, Chief Executive of BATM, said:  'This  agreement
represents further progress with the VDSL product line. We expect
to  announce further orders in due course. Our packet  over  VDSL
technology is the leader in the market and we believe  that  more
and  more  customers are recognising its benefit over  any  other
approach.'


For further information please contact:             www.batm.com

BATM                                         00 972 3 938 6888
Dr Zvi Marom, Chief Executive                
                                             
Dresdner Kleinwort Benson                    020 7623 8000
Mark Smith                                   
                                             
Shore Capital and Corporate Limited          020 7408 4090
Graham Shore                                 
                                             
Golin/Harris Ludgate                         020 7253 2252
Edward Macquisten