Telco Systems Partners with AFL Telecommunications with "FTTH Made Easy(tm)".

The Partnership will Provide Turnkey FTTx Solutions for Residential and Commercial VoIP and IPTV Services

FOXBORO, Mass. -- Telco Systems, a provider of carrier-class transport and access solutions for public and private IP and TDM networks, today announced that it has formed an alliance with AFL Telecommunications to create a turn-key active Ethernet FTTH network solution. The alliance, called Fiber Made Easy, provides end-to-end system integration as well as consulting services and solutions to help developers deliver fiber-based networks.

"A point-to-point active Ethernet network is cost effective and provides distinct advantages in terms of controlling network design and bandwidth scalability. AFL is pleased to have Telco Systems join the FTTH Made Easy(tm) program," said Kent Brown, director, Access Solutions at AFL Telecommunications.

Active Ethernet offers distinct advantages for the deployment of applications like IPTV, VoIP and VOD including dedicated bandwidth based on individual requirements and differentiated services for residential and business customers in the same area. In addition, individual subscribers can be easily added to the network at minimal cost within the 100km geographic area.

Designing a fiber-based network requires expert advice in many areas from fiber distribution, indoor and outdoor enclosures, splice and test equipment, cabling, head end solutions, and subscriber equipment. AFL's FTTH Made Easy Business Modeling Tool supports an extensive ROI modeling engine for PON and point-to-point active Ethernet to help developers determine the best solution for their homeowners. The tool also supports phased market rollouts and a wide range of user-definable inputs.

"With VoIP and IPTV continuing to grow in popularity, carriers are being challenged to find cost-effective solutions to deliver carrier-class triple-play services to their consumer and enterprise customers and fiber is the key enabling media to support the higher bandwidth and new services," stated Steven Curtis, senior vice president of sales at Telco Systems. "We are very excited to be working with AFL to define, configure and install fiber networks that meet the needs of both the residential and commercial markets."

Telco Systems offers a wide range of fiber-based products that support a robust FTTx network. These products include:

* The EdgeGate product family integrates VoIP connectivity over all major VoIP protocols that allow users to easily make calls using their existing analog phone through the IP network while simultaneously using the EdgeGate as a high bandwidth network connection for other services.

* The new Access 500 integrated access device (IAD) enables service providers to offer their small to medium business customers a seamless migration path from TDM-based services to enhanced VoIP services using a softswitch telephony infrastructure. This family of single-box solutions breaks down the barriers of voice or data-only, TDM or IP-only networks and opens up new revenue streams.

* Telco Systems' T-Marc[TM] is a family of cost-effective, fully-managed carrier Ethernet demarcation devices that provide service termination and demarcation over service providers' packet-based networks. As a multi-port customer-located intelligent demarcation device, the T-Marc delivers managed converged services (voice, video and data) over virtual Ethernet in a metro Ethernet network. The T-Marc allows service providers to drop multiple services on separate customer interfaces. Because each service is isolated, providers can troubleshoot an individual service without impacting another.

About Telco Systems

Based in Foxboro, Massachusetts, Telco Systems is a leading provider of carrier-class transport and access solutions for IP and TDM networks for carrier, service provider and enterprise markets. Its suite of products includes solutions for Metro Ethernet Access Rings, residential and enterprise VoIP, FTTx, SONET, WiFi and T1 backhaul.

Founded in 1972, Telco Systems' focus is to maximize the power of their customers' networks by integrating transport, access and packet technologies onto industry-leading platforms that meet today and tomorrow's network demands.

Telco Systems is a wholly owned subsidiary of BATM Advanced Communications (London stock exchange ticker symbol: BVC). For more information, please visit Telco Systems' web site at http://www.telco.com.

About AFL Telecommunications

AFL Telecommunications is an industry leader in providing fiber optic products, engineering expertise and integrated services to the telecommunications industry. AFL manufactures, engineers and installs the fiber optic products and equipment that communications providers need to provide high-speed voice, video and data services to their customers. The company has extensive experience in both design and application crosses all markets, from Telco, Broadband and Wireless, to Electric Utility, OEM, Enterprise and Private Networks. For more information, visit their website at http://www.afltele.com.