NEW ORLEANS, Louisiana (March 14, 2005) - Telco Systems and Outsmart Ltd., a provider of Fixed-Mobile Convergence (FMC) and Intelligent Networks (IN) solutions announced today at the CTIA Wireless show that Outsmart will integrate Telco Systems' VOIP Analog Telephone Adaptors (ATAs) into Outsmart's SmartFMCT solution. Incorporating the Telco Systems technology into Outsmart's solution will enable wireless service providers to integrate and bundle landline VoIP broadband Internet phone services as part of their mobile service offering.

With this collaboration, Outsmart will incorporate Telco Systems' Access211 or Access241 VoIP ATA as part of Outsmart's SmartFMC solution. The readily available SmartFMCTM enables mobile and fixed carriers to provide converged services to fixed and mobile users irrespective of their location, access technology and terminals. Leveraging the existing mobile infrastructure and back office systems, carriers are able to expand the mobile network to include fixed telephony across mobile, DSL, cable and WiFi networks. SmartFMCTM provides the benefits of VoIP technology with mobile features and applications such as pre-paid, SMS, multi-media messaging services (MMS), instant messaging (IM), virtual private network (VPN), ring-back-tone (RBT) and address book with a single telephone number. It enables carriers to provide subscribers with simplified and richer communication experience: delivering one identity across a variety of terminals, with one voice mail and one bill.

The Access211 and Access241 are members of Telco Systems' Access200 family, which is a diverse line of VoIP ATAs designed for service providers who need to deliver high-quality VoIP, video and data (triple play) services to their residential and Small Office/Home Office (SOHO) customers over existing broadband Internet access. The product line offers a cost-efficient means for service providers to migrate their customers' traditional analog telephones and faxes onto IP-based networks.

"The superior voice quality and advanced capabilities of the Telco Systems' ATAs, such as integrated routing and traffic shaping, makes it a valuable component of our SmartFMC solution," said Daniela Bendor of Outsmart Ltd.

Irit Gillath, of Telco Systems, said, "Outsmart's SmartFMC solution is an innovative solution that will have a dramatic impact on the mobile industry. We're honored that Outsmart has made Telco Systems a part of that solution."

The Outsmart-Telco Systems cooperation enables wireless service providers to offer their subscribers a single phone number to move seamlessly between their fixed landline and mobile network worlds. With this technology, subscribers can use their mobile phones as they normally do and also make or receive calls via the fixed VoIP landline at their home or office. Users can also decide to receive mobile calls on a designated VoIP fixed landline phone, eliminating the inconvenience of talking from a mobile phone while indoors at home or in the office.

ABOUT TELCO SYSTEMS

Based in Foxboro, Massachusetts, Telco Systems, a BATM company and a leader in network edge technology and IP switching platforms, provides industry-leading networking solutions to the carrier, service provider and enterprise markets. 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. BATM (London stock exchange ticker symbol: BVC) is a worldwide leader in designing and supplying carrier-class IP packet-based systems, such as high-capacity, self-routing switches with extensive QoS (Quality of Service). For more information, please visit Telco Systems' web site at www.telco.com.

ABOUT OUTSMART LTD.