Nexus Telecommunication Systems Ltd. Announced Today The Closing Of The Acquisition Of APTEL Ltd.

TEL-AVIV, Israel--(BUSINESS WIRE)--Dec. 26, 1997--Nexus Telecommunication Systems Ltd. (NASDAQ: NXUSF) announced today the closing of the acquisition of APTEL Ltd., a private company owned mainly by DSP Group Inc. (NASDAQ:DSPG) through it's Israeli subsidiary and various Dovrat Shrem related funds.

Nexus has purchased, for a total of 925,000 Nexus shares, one hundred percent of APTEL Ltd. shares, from APTEL current shareholders. The closing of this transaction is expected to take place in November.

APTEL, founded in 1993, develops superior wireless communications technologies and products for telemetry/SCADA and wireless messaging, based on Direct Sequence Spread Spectrum technology. In the Spring of 1995, APTEL conducted successful trial installations for the application of its products, in a partnership with MobileComm, which has the second largest paging subscriber system in the U.S. Consequently, APTEL has started to commercialize its technology and to customize its products for several promising SCADA applications. APnet, APTEL's wireless data network, supports demanding SCADA applications which require high bit rate transmission, a feature which supplements the NEXUS extensive product line.

The Nexus systems provide Two Way Paging as well as location capabilities applicable to Automatic Vehicle and Personal Location and telemetry using sparse infrastructure. The Nexus system was extensively tested in the USA, Australia and Israel during 1995 and 1996 and it is now being commercially deployed in four major metropolitans around the world. Strategic alliances with world leaders such as Samsung, Rockwell and Glenayre have all contributed and ensured the future success of this deployment, positioning Nexus as the upcoming preferred solution in this industry. The combined product offering, of Nexus and APTEL, creates the single largest source of AVL, APL, Two Way Paging and telemetry SCADA products which can be operated over traditional paging networks and unlicensed frequency bands.

In the short run, both companies will maintain their current deployment and commercialization efforts. However, in parallel, a carefully planned integration process will be implemented, geared to best utilize the operational, technological and marketing resources of both firms. The inclusion of the APTEL operation will initially result in higher R&D expenditure, a deviation from the original Nexus forecast. "However, we assume that this investment will pay off once the APTEL designed products will reach the marketplace," says Amnon Shefi, Nexus' president and CEO. "APTEL has already formed certain alliances with leading companies in various vertical markets, and we expect that these agreements will result in sales as early as 1998," added Menachem Kenan, CEO and president of APTEL Ltd.

Yaron Sheinman, Nexus chairman of the board, summarized: "In this rapidly evolving wireless industry, vendors have to quickly adjust and respond to the market needs. The similarity of the target markets and the resemblance in the technological foundation, of the two companies, constitutes a high degree of synergism which makes this mature development the natural transaction."

Nexus Telecommunication System Ltd. is engaged in the development, manufacture and marketing of low energy wireless communications and location systems through the application of digital spread spectrum technologies. Nexus is a 33 percent owned affiliate of BVR Technologies Ltd. (NASDAQ:BVRTF).

CONTACT: Nexus Telecommunication Systems Ltd., Tel Aviv

Ariel Poppel, 011-972-3-571-0226

E-mail: [e-mail]