Advanced Communications Technologies -- Receives $A3.4M in Second Tranche of Research Grant.

Business Editors/High-Tech Writers

LOS ANGELES--(BUSINESS WIRE)--Aug. 16, 2001

$A3.4M is Second Tranche of Total $A13M Government Research

Grant From AusIndustry

Advanced Communications Technologies Inc.(OTCBB:ADVC) (ACT-US) today announced that its Australian-based affiliate, Advanced Communications Technologies Pty. Ltd. (ACT-Australia) has received $A3.4 million from AusIndustry, the research and innovation support agency of the Australian government. The funding, which was contingent upon ACT-Australia successfully reaching certain milestones in the development of its SpectruCell software defined mobile network base station, comprises the second tranche of a $A13 million grant recently awarded to the Company.

"ACT-US's unique outsourcing of all its research and development work to its Australian affiliate has proved astoundingly successful in isolating the Company from the funding shocks recently experienced by others in the U.S. public markets and in helping to preserve shareholder value. This valuable government assistance helps to provide us with the security and capability to meet our goals of getting SpectruCell to market in the shortest possible timeframe and maintaining our leadership in the development of software defined radio base stations," said Roger May, Chairman of ACT-US.

May added, "AusIndustry commissioned a third-party expert to evaluate our progress in SDR technology. The results of this report validate that we have achieved milestones beyond those originally projected for this time period. AusIndustry's satisfaction with this progress and subsequent approval of this latest funding is yet another confirmation of ACT's leadership in this rapidly growing global market."

ACT expects to release details of the independent expert's report in the near future.

This latest success adds to ACT's recent achievements, which include filing a patent application for a method of implementing CDMA (IS-95) on a SDR platform and securing a development alliance with RLM Systems, a joint venture between Lockheed Martin (NYSE:LMT) and Tenix Australia.

About Advanced Communications Technologies

Advanced Communications Technologies Inc. (ACT) is a world leader in the development of software-defined radio (SDR), an innovative technology that allows for exceptional flexibility in commercial and military wireless communications. The Company's flagship product -- SpectruCell, is a SDR multiple protocol wireless base station consisting of hardware and software, that enables network providers to install a single base station and configure it to any or all protocols (GSM, CDMA, UMTS, W-CDMA, etc). Without SpectruCell, network providers would need to install separate base stations for each desired protocol. SpectruCell is supported by several patent filings that bypass 90% of Qualcomm's (Nasdaq:QCOM) patents on CDMA via hardware solutions. ACT holds the exclusive rights to SpectruCell throughout the North, South and Central American markets and to other current and future products developed by its Australian research and development affiliate, which is 20% owned by ACT-US. For more information regarding Advanced Communications Technologies, visit www.act-usa.net.

About AusIndustry

AusIndustry is the Australian Government's principal agency for delivering information, programs and services that support industry, research and innovation. An agency of the Commonwealth Department of Industry, Science and Resources (ISR), AusIndustry serves the needs of Australian businesses in the manufacturing, resources and services sectors seeking to enhance innovative activities and improve competitiveness. AusIndustry does this by providing a range of commercial incentives and information services for Australian businesses. For more information visit the AusIndustry website at http://www.ausindustry.gov.au/.