Interim Management Statement

4 May 2011

BATM Advanced Communications Limited

Interim Management Statement

BATM Advanced Communications Limited ("BATM" or the "Company") (LSE: BVC), a leading designer and producer of telecom systems and medical laboratory diagnostic systems, is today issuing its Interim Management Statement for the period from 1 January 2011 to 31 March 2011.

Current trading update 

Total revenues in the first three months of 2011 (Q1) were $31.4 million, compared with $27.2 million in the equivalent period in 2010. This 15% increase in turnover over the equivalent period in 2010 exceeded management's expectations.

During the first three months of the year the sales mix was 66% from the Telecoms division and 34% from the Medical division compared to 63% and 37% respectively in the first three months of 2010. Gross margin slightly increased during the first three months of 2011 over the same period of 2010.

Financial position 

The Company's balance sheet remains strong and at the end of March the effective cash balance stood at $57.3 million, a decrease of $2.9 million compared to the position at 1 January 2011, mainly as a result of payments to our manufacturing subcontractors.

Management appointment

We are pleased to announce that Itzik Weinstein joined the Company earlier this month as CEO of Telco Systems, our Telecoms division and will report to Dr. Zvi Marom, CEO of BATM. Itzik brings to BATM over 20 years of significant management experience and a strong track record in the hi-tech industry. In his previous position he served as President and CEO of ECtel, a provider of revenue management solutions to the telecommunications industry and a NASDAQ traded company. Previously he was Executive Vice President for Professional Services and Operations at ECtel, and prior to this, Vice President, Customer Services & Product Management at VocalTec, where he was responsible for R&D activities, product management and customer support. He also held various engineering management positions at NetManage, KLA-Tencor Corporation, Scitex Corporation and Intel Corporation. Itzik received his MBA degree from the Kellogg-Recanati Executive MBA Program of Tel Aviv University and a B.Sc. in Computer Engineering from the Technion-Israel Institute of Technology.

Outlook As noted in our preliminary results statement, trading in the first three months of the year has been encouraging. Therefore, we believe we are on track in achieving our strategic and financial targets for the full year.

- Ends -

Enquiries

BATM Advanced Communications +972 9866 2525   

Dr Zvi Marom, Chief Executive

Ofer Bar-Ner, CFO

Threadneedle Communications 020 7653 9850

Josh Royston / Graham Herring

Singer Capital Markets Ltd 020 3205 7626 

Shaun Dobson

Shore Capital 020 7408 4090 

Pascal Keane