ICT Framework Agreement

4 September 2017

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM awarded $35.8m ICT services and solutions framework agreement

First order of US$2.2m received

BATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, announces that its wholly-owned subsidiary, NGSoft, a high-end software development and design business within the Group's Networking & Cyber division, has been awarded a framework agreement (the "Agreement"), valued at up to US$35.8m over five years, to provide information communication technology (ICT) services and solutions to an agency of a government defence department. The Group has received the first order under the Agreement worth US$2.2m with delivery to commence imminently and complete in early 2018.

The US$35.8m Agreement was awarded after a lengthy competitive tender process and forms one-half of the total US$71.6m budget allocated by the government defence agency to procure these ICT services and solutions over a five-year period.

Dr Zvi Marom, Chief Executive Officer of BATM, said: "We are delighted to have been awarded this agreement following a competitive tender process and to have received the first order so quickly thereafter demonstrates the intent of the defence agency to move forward with this project without delay. This significant government contract provides further validation of the strength of our offering. We look forward to delivering this initial project and to expanding on it as well as receiving contracts from new customers following the successful completion of proof-of-concept trials in multiple countries."

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The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.