Telco Systems Total FTTH Solution Now Approved for USDA's Rural Utilities Service


FOXBORO, MA--April 11, 2007- Telco Systems announced today that its T5 Compact Ethernet switch product line has been accepted for use in Fiber-To-The-Home (FTTH) and telecommunication projects funded by the United States Department of Agriculture's Rural Utilities Service (RUS). The acceptance follows the recent announcement of the Company's RUS-approved EdgeGate gateways which provide broadband Internet access, Internet phone service (VoIP), IPTV access and video-on-demand to rural customers. The approval enables service providers to offer a single-source complete FTTH and FTTB end-to-end solution using Telco Systems' family of carrier-class IP aggregation and core routing switching platforms and CLE gateways deploying community broadband networks utilizing RUS loans and grants.

"The approval of the T5 Compact is a significant step in easing the design of a total end-to-end solution for RUS funded broadband networks," stated Irit Gillath, vice president of VoIP product line management for Telco Systems. "The switch offers the capacity of physically larger backbone switches at price points associated with workgroup switching, which makes it not only cost effective, but also the ideal solution in cramped wiring closets and racks."

The T5 Compact family is a NEBS Level 3 certified routing switch that can accommodate up to 24 10/100/1000 fiber and copper circuits and four Gigabit fiber or copper uplinks in a 1.75" rack space (1 RU). The T5 Compact is ideal for applications like video and voice services where reliability is critical, as it offers a standards-based, sub 50msec switch recovery time for link or switch failure. When paired with the Company's RUS-approved EdgeGate CLE device, the T5C offers a field proven, fully managed end-to-end FTTH solution.

Douglas County Community Network (DCCN) in Washington has been using Telco Systems' fiber-to-the-home solutions since 2001. They deploy both the EdgeGate and the T5C Gigabit Ethernet switches in their network. According to Ben Carter, DCCN coordinator, "The combined EdgeGate and T5C solution has performed very well in our network. The solution is very reliable, resilient and feature rich."

USDA Rural Development Telecommunications program offers many programs for financing rural America's telecommunications infrastructure, and is dedicated to increasing economic opportunity and improving the quality of life in rural communities. As a venture capital entity, Rural Development has invested over $76 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in home ownership, business development, and critical community and technology infrastructure in rural communities. The grants are designated for rural, economically-challenged communities to provide broadband transmission services to rural schools, libraries, education centers, health care providers, law enforcement agencies, public safety organizations, as well as residents and businesses.

Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at www.rurdev.usda.gov.

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 Carrier Ethernet Access rings and demarcation, residential and enterprise VoIP, FTTx, SONET, TDM 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.

CONTACTS:

Raylene Kadrmas, Telco Systems
781-255-5314, rkadrmas@telco.com

Lisa Rivero, PAN Communications
978-474-1900, lrivero@pancomm.com

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