Advanced Communications Technologies - 3G & Software Defined Radio Solution; Well Positioned to Lead the Global 3G Charge!

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Dec. 20, 2000

Advanced Communications Technologies (Australia) Pty Ltd ("ACT AUS"), a leader in the field of Software Defined Radio (SDR) network solutions, and developer of the first multiple protocol wireless base station, today issued the following statement concerning the introduction of third generation (3G) technologies and the leading role the company could play in this evolving global marketplace. The Australian company is the affiliate of Advanced Communications Technologies, Inc. (OTC BB: ADVC).

The company also recently filed the first two of a series of 35 plus patents that relate to the software implementation of CDMA on an IS-95 platform. ACT AUS has achieved this functionality without the use of Qualcomm (NASDAQ: QCOM) chipsets or any other protocol specific hardware and believes that the company's technology will by-pass 80% - 90% of Qualcomm's CDMA patents.

3G - Estimated $200 Billion World Market

"Recent data indicates that for every 3G license awarded an additional $US150 million in value is added to the global market for 3G network infrastructure. With up to 80 licenses expected to be awarded in Europe and Asia alone by the end of 2001, it is relatively easy to see that we are looking at a massive global market for 3G equipment," said Roger May, chief executive officer, Advanced Communications Technologies.

"This data places the near term market value at more than $US10 billion, with companies such as Nortel (NYSE: NT) estimating the market to be worth in excess of $US37 billion as early as 2003. However, these figures pale in comparison to the longer term estimates of over $US100 billion being expended on 3G infrastructure over the coming five years. In fact, Bo Hedfors, President of Motorola's (NYSE: MOT) network systems segment recently commented that they have valued the global 3G market at $US200 billion. Given the expected size of this market, even a relatively small market share will yield highly attractive returns for investors".

Further evidence of the growing market for 3G infrastructure was recently provided in a report by Cahners In-Stat Group, which forecast a 25 percent compound annual growth rate for wireless base-stations from 2000-2004.

Critical Factor - Time to Market

"The critical issue for companies seeking to capitalize on this potential will be time to market. David Mason, Ericsson's (NASDAQ: ERICY) 3G marketing manager has already stated that they will not have equipment for 3G spectrum available before 2004. While Alcatel (NYSE: ALA) and Samsung recently announced a joint venture with plans to provide 10% to 15% of the world infrastructure for 3G networks, there is no indication that they are not facing a similar situation".

The issue of time to market was recent highlighted by MIT Professor Nicholas Negroponte who noted that phone companies are trapped in a race to feed their customers' addiction for better and faster mobile services.

During a recent visit to the company's offices in Melbourne, Australia by senior executives of a world leading DSP manufacturer, discussions indicated that ACT AUS is 18 months to two years ahead of anybody else in the development of software defined 3G network equipment and technologies.

SPECTRUCELL - 3G MARKET READY - 2001

"Advanced Communications Technologies will have SpectruCell, its multiple protocol software defined mobile base station in the market ready for `type approval' in carriers model networks by late 2001. The significance of this is that we not only believe we will be first to market, but that we believe we will have a product in the market that offers a level of flexibility previously unheard of in mobile network base stations".

Allen Nogee, senior analyst from In-Stat Wireless Service recently highlighted some of the key issues facing US mobile network operators. "In the United States, with three different air interfaces, carriers must decide not only whether to move to 3G, but also which migration path to take", he says.

Clarifying Advanced Communications Technologies solution to this dilemma, May said, "As far as functionality is concerned, network operators' fears of appropriate commercial handset shortages for 3G are dismissed by SpectruCell's multiple protocol capability. When 3G phones hit the market in 2001, SpectruCell will be there with network support regardless of whether they are CDMA2000, UMTS (FDD or TDD), LAS-CDMA, GPRS/EDGE. Nokia (NYSE: NOK), Ericsson and Qualcomm cannot offer this crucial multiple protocol support and recent contract announcements by Ericsson stand to reinforce market perceptions of the SpectruCell threat".

"SpectruCell will also be uniquely positioned to deploy quality of service (QOS) based features for 3G through the use of dynamically assigned software modules. Examples are sacrificing call density to support high quality, or supporting multiple standards such as CDMA and GSM but altering the number of channels running in each according to demand".

SpectruCell - Additional Advantages

"Aside from this functionality, SpectruCell will host additional features in the form of time and cost savings. Reductions in time to market of up to 50% over standard base stations are expected with SpectruCell and this is due to the fact it is a software radio that allows anything from system refinement to total network reconfiguration at the stroke of a key. We believe significant savings will be derived from a SpectruCell deployment by virtue of our software implementation of mobile communications protocols. This method eliminates the need for chipsets such as Qualcomm's which are currently required for CDMA".

"Equally importantly, SpectruCell's technical specifications place it in another league when compared to existing attempts at SDR base-stations. For example Airnet's (NASDAQ: ANCC) AdaptaCell technology only has a 5Mhz front end and incorporates protocol specific hardware at both the RF and DSP stages. SpectruCell has a 25Mhz front end with no protocol specific hardware. By providing 400Mhz - 2.9Ghz front end frequency coverage SpectruCell can solve many of the issues created by the fact that the frequency band allocated for 3G service often varies from country to country".

All of these advantages are in addition to SpectruCell's inherent ability to simultaneously process multiple protocols in the same wireless base station or network. To further the development of SpectruCell, Advanced Communications Technologies is presently developing alliances with companies such as Texas Instruments (NYSE:TXN), Motorola, Analog Devices (NYSE: ADI), Lucent (NYSE: LU), Mitsui (NASDAQ: MITSY), NEC (NASDAQ: NIPNY) and Chameleon and has recently entered into a co-development agreement with one of the largest internet/network infrastructure providers in the world.

About ADVANCED COMMUNICATIONS TECHNOLOGIES INC.

Advanced Communications Technologies Inc. (OTCBB: ADVC) is a leader in the field of Software Defined Radio that in conjunction with its Australian based affiliate has developed a proprietary, multiple-protocol wireless base-station, "SpectruCell".

Through eliminating the use of Qualcomm (NASDAQ: QCOM) chipsets and protocol specific hardware, and conducting all signal processing in software, SpectruCell provides for simultaneous support of multiple mobile communications protocols (CDMA, WCDMA, UMTS, GSM & 3G) all in the same base-station. Support for additional protocols is achieved through the uploading of software modules.

By implementing the company's SpectruCell technology network providers will be able to maintain service to their existing customer base and preserve the utilization of their existing network infrastructure while at the same time securing a highly flexible migration path for evolving 3G-based protocols such as WCDMA and UMTS. SpectruCell is complemented by several other wireless technologies currently under development. Advanced Communications Technologies plans to market these products throughout North, South and Central America. For more information regarding Advanced Communications Technologies, visit www.act-usa.net

Further information regarding Ladenburg Thalmann Funding for $12m

On December 19, 2000 Advanced Communications Technologies Inc. (OTC BB: ADVC), announced it had executed final documentation to secure a $12 million equity line of credit with Ladenburg Thalmann, one of the oldest New York-based investment banking firms. Ladenburg Thalmann role was to act as the placement agent, as previously announced in July 2000 and Ladenburg Thalmann is not directly responsible for the $12 million funding.

The foregoing contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or implied) will not be realized.