Commercial markets cybersecurity partnership

LEI: 213800FLQUB9J289RU66

2 July 2024

BATM Advanced Communications Limited

("BATM" or the "Group")

Commercial markets cybersecurity solution partnership with global powerhouse

Major milestone achieved with signing of strategic partnership agreement to sell BATM's advanced cybersecurity solution to commercial markets globally

BATM (LSE: BVC; TASE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that it has signed a strategic partnership and cooperation agreement with a significant global technology, engineering and defence group (the "Partner") to deliver the Group's advanced cybersecurity solution to commercial markets. The Partner generated revenue of over $10bn in 2023 and serves customers in more than 100 countries, with operations spanning Asia, Europe, the Middle East and the U.S.

With this agreement, the Group will customise its advanced encryption platform to meet the requirements of its Partner, with the development work being funded by the Partner. The customised platform will be distributed globally by the Partner, with exclusivity in certain territories, to a variety of commercial markets and for critical national infrastructure. This agreement, and the corresponding launch of a cyber solution for the commercial markets, represents a significant increase in the Group's addressable market, which the Group's cyber solution is well-positioned to target thanks to the Partner's substantial network and commercial reach.

BATM's encryption platform is a hardware and software solution that secures data-in-transit at high speeds across a network. It incorporates the Group's hardware security module, which provides enhanced hardware-based protection of encryption keys, which is becoming increasingly important due to the growing number of attacks targeting weak links in the supply chain, such as the equipment vendors. It offers seamless integration with Quantum Key Distribution systems to provide customers with protection against the emerging quantum computing threats. In addition, the Group expects it to be the only commercially-available encryption platform to offer a mix of speeds, enabling customers to grow their network without replacing the platform.

Over the next two years, the Group will receive a minimum of $2.1m from the Partner for the product customisation phase and the provision of an initial quantity of units, which will be delivered in three phases over the two years. The Group is due to commence delivering the units to the Partner by the end of the first half of 2025.

Moti Nagar, Chief Executive Officer of BATM, said: "To be partnering with such a large, well-established and global organisation to deliver our cutting-edge encryption platform to the commercial markets is transformational for BATM Cyber and is a fantastic endorsement of our solution. The introduction of a cybersecurity offering for non-governmental customers has long been an important objective for BATM, and this collaboration significantly boosts our commercial market entry by providing worldwide distribution networks and a partner with the resources to engage in considerable sales & marketing activities. We look forward to working closely with our strategic partner in the fulfillment of this agreement, which we expect to serve as a prominent catalyst for the growth of our cyber business in the near future."

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Forward-looking statements  

This document contains forward-looking statements. Those statements reflect the current opinions, evaluations and estimations of the Group's management, and are based on the current data regarding the Group's business as is detailed in this document and in the Group's periodical, interim and immediate reports. The Group does not undertake any obligation or make any representation that actual results and events will be in line with those statements, and stresses that they may differ materially from those statements, due to changes in the Group's business, market, competition, demand for the Group's products or services, general economic factors or other factors that can influence the Group's business and results, due to the risk factors that are detailed in the Group's Annual Report, and due to information and factors that are currently unknown to the Group's management and that, if known, would affect the management's opinions, evaluations or estimations. The Group will report the actual results and events according to its legal, accounting and regulatory obligations, and does not undertake any other obligation to report them or their deviations from the forward-looking statements, or to update any of the forward-looking statements in this document or to report that it is not valid anymore.