Launch of industry's first Arm-based uCPE with NXP

11 October 2017

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM's Telco Systems launches industry's first Arm-based uCPE networking solution with NXP Semiconductors

The Group's NFV/SDN solutions now available on all major architectures

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 Telco Systems ("Telco"), a high-end software development and design business within the Group's Networking & Cyber division, together with NXP Semiconductors (NASDAQ: NXPI) ("NXP"), a worldwide leader in advanced secure connectivity solutions, have launched the industry's first and only Arm®-based uCPE networking technology solution, which utilises the Group's NFVTime plug-and-play solution that enables network function virtualisation ("NFV"). As a result, the Group's NFV and software-defined network ("SDN") solutions, which are already integrated with Intel-based platforms, are now available on all major architectures.

The new solution, which is commercially available, was developed by Telco and NXP, in close collaboration with Arm. Telco has become an Arm ecosystem partner - and is the only such partner to enable NFV infrastructure. The Group expects to receive initial sales from the new platform in 2017.

By introducing an Arm-based uCPE (universal Customer Premises Equipment) platform - a networking solution that converts network functions from hardware to software, which allows remote deployment and modification by a service provider - network operators and virtualised network function providers can now deploy their applications and operate across all major hardware architectures and thereby can leverage the advancements in different processor technologies. Thanks to the strength of the Telco, NXP and Arm technologies, the new platform offers a performance, power and cost point not available in the market with existing architectures. In addition, by utilising the Group's NFVTime plug-and-play open, service-ready solution, service providers are now able to introduce this Arm-based uCPE without complicating the operation processes.

Dr Zvi Marom, Chief Executive Officer of BATM, said: "We are honoured to have launched this solution in partnership with such established organisations as NXP Semiconductors and Arm, which demonstrates the strength of our offer. We believe that it will accelerate the adoption of NFV/SDN in the telecoms market. It is also another milestone in the deployment of our strategy to focus on NFV and SDN solutions and further validates that transition. We are now the only provider of NFV solutions available on all major architectures, which enables the users to be truly hardware-free, and we look forward to expanding our sales in this area, which represents a key target growth-market for BATM."

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