Trading Update

BATM Advanced Communications Ld
7 December 2000


           BATM Advanced Communications Ltd ('BATM')
                               
                        Trading Update
                               
                               
                               
BATM announces a trading update for the financial year to 31st
December 2000.

Turnover for the second half of 2000 and therefore the full
year is expected to fall short of current analysts
expectations.  BATM now expects revenues in the second half of
at least $55m compared to approximately $37m in the first
half, making a total of at least $92m for the full year.

The reasons for the shortfall are:

-   The inability of a major supplier of optical transceivers
    to deliver to confirmed contractual dates.

-   In addition BATM has been cautious in accepting orders
    from certain customers with aggressive expansion plans.

-   Deferred orders from major telecommunications customers
    compared to expectations.

BATM confirm that all previously announced product
developments and R&D projects are on track and 2001 will see
the production of new products in commercial quantities.

BATM currently has a strong backlog of orders for shipment in
2001 and this, together with a strong pipeline of new
products, lead BATM to believe that 2001 will show significant
growth in turnover over 2000, in line with percentage
increases previously forecast by analysts.

Enquiries:

BATM
Dr Zvi Marom  Chief Executive today     00 972 5 471 8913
              thereafter                00 972 3 938 6888
Ofer Bar-Ner  Finance Director today    00 972 5 471 8913
              thereafter                00 972 3 938 6888

Golin/Harris Ludgate
Edward Macquisten                           020 7253 2252