BATM Advanced Wins Israel Infrastructure Contract

LONDON--Telecommunications and medical technology group BATM Advanced Communications Ltd (BVC.TV) said Monday that a consortium including BATM was yesterday selected to establish Israel's third communications infrastructure venture.

MAIN FACTS:

-Venture is in conjunction with the Israeli Electricity Corporation, or IEC, to roll-out fiber optic broadband and Internet services throughout Israel.

-The consortium will roll-out fiber optic cables on the electricity network of the IEC.

-Following the installation of the network, customers will be supplied with a range of advanced services and bandwidth significantly higher than those currently existing in Israel.

-It is hoped that the project, in connecting every household through a technological revolution of broadband communications, will be of broad benefit to the economy, education, health, technology and society of Israel.

-A new company will be established for the purposes of this project and will be 60% owned by the consortium and 40% by the IEC.

-It is expected that the financial closing of the transaction will take place within a month.

-Securing this contract was included in the group's expectations of its financial performance for both the current and coming year.

-In addition to ViaEuropa, the consortium includes Rapac Group, BATM, Zisappel assets and Tamares Holdings, and Cisco Systems will be the technology leader.

-Under the terms of the agreement, BATM will provide equipment for the fiber optic network together with Cisco Systems and others.

-Shares at 1007 GMT, up 1.0, or 3.3%, at 16 pence valuing the company at GBP60 million.

-Write to Rory Gallivan at [e-mail]; Twitter: @RoryGallivan

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