Subsid's Acquisition

BATM Advanced Communications Ld
9 August 2000



                BATM Advanced Communications Ltd

Telco Systems acquires Network Access business from Ezenia! Inc.
   Acquisition gives Telco Systems a broader range of carrier
                access solutions, a new streaming
      video platform, and expands the company's engineering
                          capabilities


Norwood, Massachusetts, August 8, 2000 - Telco Systems, Inc.
('Telco Systems') of Norwood, Massachusetts, a subsidiary of BATM
Advanced Communications Limited ('BATM'), and a leader in network
edge technology, and IP switching platforms has signed a letter
of intent with Ezenia! Inc. (NASDAQ: EZEN) of Burlington,
Massachusetts, to acquire Ezenia!'s Network Access products.
Under the agreement, Telco Systems will acquire the products and
the employees associated with the Series I, Series II, BRICKTM
and Smart-ISDNTM product families, as well as the new StreamSpan
products for broadband, on demand, streaming for a total
consideration of US$6.0 million, comprising US$4.5 million in
cash from existing resources and US$1.5 million in credit to be
used by Ezenia! to purchase products from Telco Systems. Telco
Systems will utilize these employees as the genesis of a
development team, focused on next generation access solutions for
the edge of the network, and beyond.

'Adding these extremely talented employees and the technology
they developed to the Telco Systems family, is another step in
providing the most advanced platforms available for the network
edge to the network core' said company president David LeBeau,
'We fully expect this addition to enhance our voice over IP
technology, and strengthen our OEM position with other vendors
and is line with the Group's strategy of complementary
acquisitions' He added.

A total of 25 Ezenia! employees will transfer to Telco Systems in
two locations:  Marlborough, Massachusetts, and Middletown, Rhode
Island.  Telco Systems will keep both facilities in operation,
and in fact will expand them to support the aggressive
development of next generation IP access products for the service
provider market.

'The sale of theses products to Telco Systems will allow us to
direct all of our energies to our enterprise collaboration and
web interactivity solutions, which are at the core of Ezenia!'s
business,' Said Khoa Nguyen, Chairman and CEO of Ezenia! Inc.,
'We expect to complete this transaction by the end of the month.'
He added.

Telco Systems was acquired by BATM in April, and recently added
IP switching platforms, VDSL modems, and VoIP gateways to their
traditional EdgeLink(R) product lines, giving the company a full
line of advanced carrier service platforms, and competitive
products for the exploding MTU/ MDU market.


About Telco Systems

Based in Norwood, Massachusetts, Telco Systems combines its
EdgeLink innovations with its rich 27- year engineering legacy to
continue its industry position as a leader in offering service
providers and corporate customers highly reliable voice and data
telecommunications networking and switching solutions. The
company's EdgeLink family of integrated access, multi-service
access, and multi-service broadband transport products delivers
seamless migration from circuit-based equipment to emerging
packet/cell technologies. EdgeLink solutions deliver unparalleled
economy, compact size, scalability and manageability, enabling
network service providers around the globe to compete more
effectively.

Telco Systems is a wholly owned subsidiary of BATM Advanced
Communications, which was named 1998's 'Best Technology Company
of the Year' by the London Stock Exchange. BATM (London stock
exchange ticker symbol: BVC) is a worldwide leader in designing
and supplying IP packet-based systems, such as high-capacity,
self-routing switches with extensive QoS.


FOR MORE INFORMATION, PLEASE CONTACT:

  David Weissman
  Assistant Vice President,
  Business Development
  781-551-0300


For more information, please visit Telco Systems' website at
www.telco.com and BATM Advanced Communications at www.batm.com.

Note:  The term EdgeLink and its logo are registered trademarks
(R) of Telco Systems.