Trading Statement

12 December 2011

BATM Advanced Communications Limited

Trading Update

BATM Advanced Communications Limited ("BATM" or the "Company") (LSE: BVC), a leading designer and producer of broadband data and telecoms systems and medical laboratory equipment, provides an update on trading for the fourth quarter of 2011. Trading in our Telecoms division, as a result of a recent, faster than anticipated decline in sales of certain legacy products, has been below the expectations indicated in our recent Interim Management Statement. We believe that this is due to general weak market conditions and that others in our peer group are experiencing the same effects.

We now expect that revenues and profits for the Company for the year to 31st December 2011 will be below the guidance given in our October announcement. Following this marked recent softening in demand from certain US operators for legacy telecoms products, the Board is undertaking a strategic review of this segment of our Telecoms division and will consider withdrawing from it in 2012. The products affected currently account for approximately 22 per cent. of the Telecoms division's revenues. The focus of the Telecoms division will be on the higher margin, new IP, direct and OEM prospects. We expect this focus to generate growth next year, underpinned by our recent successes in signing new agreements with both the world's largest tier 1 telecoms vendor and also with Motorola.

Update on Tel Aviv Listing

In order to finalise the steps mentioned above we have asked for approval to delay our listing on the Tel-Aviv Stock Exchange for a few months and we expect a positive response shortly. A further update on the timing of the Tel-Aviv listing will be made in due course.

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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

finnCap 020 7220 0500

Marc Young / Brian Patient

Shore Capital 020 7408 4090 

Pascal Keane