New Follow-On Cyber Security Contract

LEI: 213800FLQUB9J289RU66

11 June 2018

BATM Advanced Communications Limited

("BATM" or "the Group")

BATM Awarded New Follow-On Cyber Security Contract by a Government Defense Department

Latest award of approx. $3m contract to provide expanded hardware and software solution is the fifth from a government agency

Further to the Group's announcement of 8 January 2018, 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 ("the Division") has been awarded another significant contract by a government defense department (the "Customer") to supply an enhanced cyber communication technology solution. This contract, which is the fifth such contract awarded to BATM by a national government, is worth approximately $3m over the next 18 months. To date, this brings the total contracted revenue awarded to BATM by the Customer to approximately $7m.

This new order expands the capability of the solution by adding more features. The Group will commence delivery of the new order immediately with completion expected during the second half of 2019. The Group anticipates receiving further follow-on orders after the completion of this contract.

Dr Zvi Marom, Chief Executive Officer of BATM, said: "This new contract demonstrates our capability to widen the scope of our solutions and scale-up to provide even greater security. The interest in our cyber technologies' abilities to detect and investigate suspicious network activity and cyber threats continues to increase as governments and their defense agencies seek to prevent potential cyber attacks on their infrastructure and important institutions, as well as to secure their communications. There is an understanding that deploying the right cyber solution is a necessity in today's networked environment, and we expect further adoption of our solution by more clients as we receive increasing vindication of the strength of our offering with additional large-scale deployments."

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