CMVT Comverse Technology, Inc. (MM)

Comverse, a subsidiary of Comverse Technology, Inc. (NASDAQ: CMVT), and the world's leading supplier of software and systems enabling network-based multimedia enhanced communication and billing services, today announced that it has signed a definitive agreement to acquire privately-held Netonomy for approximately $19 million in cash. Netonomy, a leader in customer self-service, bill analysis and point of sale (POS) solutions, extends Comverse's portfolio of real-time billing and customer management solutions for communication service providers by adding additional tools to increase efficiency and enhance the end-customer experience. Netonomy's self-service application suite allows consumers, enterprises, and retailers to activate and manage subscriptions, buy new products and services, and review, analyze and pay bills using virtually any communication device. Netonomy customers include Bouygues Telecom, several Orange operators, T-Mobile UK, Telstra and Vodafone UK. Raz Alon, interim CEO of Comverse Technology, said, "This acquisition is in line with our strategic efforts to continually enhance Comverse's Total Communication Product Portfolio's ability to generate revenues, strengthen customer loyalty and improve operational efficiency for communication service providers." "Following integration of Kenan(R) Billing solutions, this latest addition of Netonomy better positions Comverse to provide converged billing solutions enabling superior choice, convenience and control," said Zeev Bregman, CEO of Comverse, Inc. "Our customers benefit from field-proven and scalable technology, short time to market, and an extensive, modular designed product feature set." "Joining Comverse was a natural move," said John Ball, CEO of Netonomy. "Service providers need to accelerate the adoption of direct self-service quicker than ever to lower their cost of acquisition and service, regardless of market segment. Web access to select and change plans and features also improves customer satisfaction and loyalty, while reducing operational costs." The acquisition is subject to a number of customary closing conditions. About Comverse Comverse, a subsidiary of Comverse Technology, Inc. (NASDAQ: CMVT), is the world's leading provider of software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication(SM) portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. For additional information, visit the Comverse website at www.comverse.com or Comverse Technology's website at www.cmvt.com. About Netonomy Netonomy(R) is a leader in customer self-service solutions, providing online account management, e-Commerce and electronic bill analysis for the communications industry. Netonomy customers include leading operators in 15 countries around the world, such as innovative and market leading service providers: Bouygues Telecom, several Orange operators, T-Mobile UK, Telstra and Vodafone UK. Founded in 1999, Netonomy has offices in Europe, North America, and Asia. All product and company names mentioned herein may be registered trademarks or trademarks of Comverse or the respective referenced company(s). Note: This release contains "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include: the results of the review of the Special Committee, appointed by the Board of Directors on March 14, 2006, of matters relating to the Company's stock option grants, including, but not limited to, the accuracy of the stated dates of option grants and whether all proper corporate procedures were followed; the impact of any restatement of financial statements of the Company or other actions that may be taken or required as a result of such reviews; the Company's inability to file reports with the Securities and Exchange Commission; risks associated with the Company's inability to meet NASDAQ requirements for continued listing, including possible delisting; risks of litigation and of governmental investigations or proceedings arising out of or related to the Company's stock option grants or any restatement of the financial statements of the Company; risks associated with integrating the businesses and employees of the GSS division of CSG Systems, International and Netcentrex S.A.; changes in the demand for the Company's products; changes in capital spending among the Company's current and prospective customers; the risks associated with the sale of large, complex, high capacity systems and with new product introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either the Company or its competition; risks associated with rapidly changing technology and the ability of the Company to introduce new products on a timely and cost-effective basis; aggressive competition may force the Company to reduce prices; a failure to compensate any decrease in the sale of the Company's traditional products with a corresponding increase in sales of new products; risks associated with changes in the competitive or regulatory environment in which the Company operates; risks associated with prosecuting or defending allegations or claims of infringement of intellectual property rights; risks associated with significant foreign operations and international sales and investment activities, including fluctuations in foreign currency exchange rates, interest rates, and valuations of public and private equity; the volatility of macroeconomic and industry conditions and the international marketplace; risks associated with the Company's ability to retain existing personnel and recruit and retain qualified personnel; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of the Company with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available through the Company, or its website, www.cmvt.com, or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.