Batm Advanced Regulatory News (BVC)

6 April 2016

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM wins c. US$4m new contract to provide cyber security solution to a national defence agency

Chosen as leading supplier to provide hardware and software solution for a second government customer

BATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that its Networking and Cyber Division (formerly known as the Telecoms Division) has been awarded a significant contract as the leading supplier for the delivery of an Information Communication Technology solution combined with several cyber elements to a government defence department. This contract is the second such contract awarded to BATM by a national government and is worth approximately US$4m over a period of up to three years.

BATM was awarded the contract following a rigorous POC (Proof Of Concept) programme, conducted over several years along with other competing solutions. BATM's solution of comprehensive network monitoring for detecting, investigating and analysing network threats and advanced persistent threats was deemed the best-of-breed amongst its peers. Under the terms of the contract, BATM's Networking and Cyber Division will deliver an array of new cyber-secured networked applications, and enhance the security and monitoring of the customer's existing solution whereby the usage and pattern of usage will be more accurately monitored and analysed.

The Networking and Cyber Division will commence supplying the solution in Q3 2016 and deliver it over a period of up to three years, with an option for the customer to increase the contents and the deliverables of the project during that period. As a result, the directors of BATM believe that the revenue generated under this contract could potentially be substantially higher.

Dr Zvi Marom, Chief Executive Officer of BATM, said: "We are delighted that our solution has been chosen by another major customer. It is recognition of our ability to deliver a state-of-the-art much needed solution that has been tried and tested over a period of years. Demand for our technology continues to grow from other governments as well as several different agencies and we are involved in several POC programmes that we believe may materialise into similar contracts."

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