Telco Systems Plans to Acquire Metrobility Optical Systems


Acquisition Will Strengthen Ethernet Demarcation Offering and Expand Footprint in Cable Provider Market

FOXBORO, MASSACHUSETTS (June 22, 2006) -- Telco Systems, a provider of carrier-class transport and access solutions for public and private IP and TDM networks, today announced it has agreed to acquire Metrobility Optical Systems, a pioneer and leader in optical Ethernet demarcation solutions for the deployment of carrier Ethernet services. The acquisition will integrate Metrobility's intelligent Ethernet service demarcation devices with Telco Systems' metro Ethernet access solutions to offer service providers a wider range of carrier Ethernet demarcation options, as well as augment Telco Systems' cable provider customer base.

"Intelligent control at the edge of the network is essential in ensuring the transmission of reliable, high-quality data and voice services," said Dr. Zvi Marom, Founder and CEO of BATM, Telco Systems' parent company. "Metrobility is a recognized leader in this arena, and the combined engineering expertise of both companies will create an extremely comprehensive portfolio for a broad base of customers."

Metrobility recently announced its AccessServices technology, a purpose-built framework for the deployment of standards-based access solutions that deliver application-driven intelligence edge-to-edge. "The incorporation of Metrobility's AccessServices technology with Telco Systems' robust carrier Ethernet access platforms will create a comprehensive, competitive solution for both local exchange carriers and cable providers looking to extend Ethernet services to the business customer," stated Manu Kaycee, Vice President of Product Strategy and Management for Metrobility Optical Systems.

Metrobility's Radiance demarcation solutions complement Telco Systems' T-Marc product line by adding a wide range of cost-effective, remotely-managed, single and multi-port demarcation options to Telco Systems' current offerings. These demarcation solutions can be used on their own or in conjunction with Telco Systems' carrier-class T-Metro, an MPLS/HVPLS-based multiservice metro Ethernet access platform, or the company's T5 Compact family of Ethernet aggregation switches.

Metrobility is a privately held company based in Merrimack, New Hampshire, with distribution in more than 40 countries. With more than 15 years of experience in Ethernet, Metrobility has more than 70 service providers (CLECs, MSOs and PTTs) and thousands of large enterprises utilizing its products worldwide.

ABOUT TELCO SYSTEMS

Based in Foxboro, Massachusetts, Telco Systems is a leading provider of carrier-class transport and access solutions for IP and TDM networks for carrier, service provider and enterprise markets. Its suite of products includes solutions for Metro Ethernet Access Rings, residential and enterprise VoIP, FTTx, SONET, WiFi and T1 backhaul.

Founded in 1972, Telco Systems' focus is to maximize the power of their customers' networks by integrating transport, access and packet technologies onto industry-leading platforms that meet today and tomorrow's network demands.

Telco Systems is a wholly owned subsidiary of BATM Advanced Communications (London stock exchange ticker symbol:BVC). For more information, please visit Telco Systems' web site at www.telco.com.

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