Advanced Communications Technologies Inc. -- 3G Shared/Virtual Networks Utilizing SpectruCell SDR Base Stations.

Business Editors and High-Tech Writers

LOS ANGELES--(BUSINESS WIRE)--July 30, 2001

Advanced Communications Technologies Inc. (OTCBB:ADVC) (ACT-US) today confirmed that the company's Australian affiliate Advanced Communications Technologies (Australia) Pty Ltd is currently negotiating with several major U.K. and European carriers to provide SpectruCell based Virtual or Shared Networking infrastructure for the rollout of third generation (3G) networks.

ACT's software defined radio (SDR) SpectruCell technology is ideally suited to provide common infrastructure for multiple network operators. In planned 3G network rollouts, carriers can both minimize network establishment costs as well as remove technical and compatibility issues that up until now have prevented network operators from sharing a single mobile wireless network infrastructure.

ACT's SpectruCell SDR based Virtual/Shared networking will be able to provide major cost savings and crucial competitive advantages for network operators as telecommunications regulators globally seek to implement sharing of network infrastructure as a means to speed up and ensure the roll out of 3G mobile services.

SpectruCell lowers infrastructure costs for network operators by allowing them to share common equipment and backhaul services and provides next generation management and accounting facilities to ensure quality of service between carriers. These features significantly lowers the total cost of ownership for a network provider.

This key ability is derived from SpectruCell's SDR operating system (patent pending), which allows network operators to simultaneously support multiple communications standards (GSM, CDMA, W-CDMA, 3G etc) on the one network infrastructure. Importantly, this support can be achieved using the same or different bands of radio spectrum over the one SpectruCell based infrastructure. Unlike present hardware based 3G solutions, any additional protocol support requires relatively minor software upgrades to the SpectruCell SDR Base Station.

"The planned rollout of 3G networks is placing an incredible financial burden on network operators around the globe," said Roger May, Chairman of ACT-US. "As a consequence, concerned industry regulators are increasingly turning to infrastructure sharing to reduce the cost and ensure the rollout of 3G services. ACT's SpectruCell SDR base station is the only known technology that will be available in early 2002 that has the ability to provide secure seamless simultaneous support for multiple communications standards for several competing carriers on the one network infrastructure."

This unique proprietary capability of the SpectruCell base station is particularly suited to the massive U.S. market where regulators are encountering many 3G rollout difficulties and also in the European market where network operators have outlaid tens of billions of dollars for 3G spectrum.

One major European mobile carrier plans to implement some 40,000 base stations in their 3G rollout, compared with the 10,000 in their current 2G network. This global requirement to increase the number of cell sites in order to roll out 3G services is requiring both regulators and operators to move to a shared network model for 3G network rollouts. The company believes that SpectruCell is the only technology, expected to be available in early 2002, that can support planned 3G shared network infrastructure and that has the ability to comply with proposed FCC standards.

"The pressure on the U.S. market to secure 3G spectrum is immense with everything from Presidential directives to specialist FCC reports being issued to combat the problem. SpectruCell's ability to be dynamically reconfigured in real time provides the ideal solution in that it could simultaneously support 3G services in existing spectrum that is presently used for a 2G service like CDMA or GSM," said May.

Recent statements from both the U.S. Department of Commerce's National Telecommunications and Information Association, NTIA and the U.K. regulator for the telecommunications industry, OFTEL, have confirmed that infrastructure sharing will be increasingly championed as the solution to expensive 3G network rollouts. This powerful industry pressure and high cost of existing hardware based solutions is providing ACT with an exceptional opportunity to generate substantial revenues from the increasing global demand for next generation 3G network upgrades.

ACT is also currently negotiating with one major U.S. carrier to implement SpectruCell SDR base stations in their current mobile network and their planned provision of third generation services.

ACT's SpectruCell technology is supported by several patent applications and the recent securing of 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.

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.