CALABASAS, Calif. -- Tekelec (Nasdaq:TKLC - News) today announced that it has acquired VocalData, Inc., a provider of hosted Internet protocol (IP) telephony applications that enable the delivery of advanced telecom services and applications to business and residential customers. With the acquisition, Tekelec, a global supplier of telecommunications products for next-generation fixed, mobile and packet networks, enables operators to deliver time division multiplex (TDM) and IP services such as IP Centrex, hosted PBX services and voice virtual private networking (VPN) as they migrate to next-generation networks.

Tekelec purchased 100 percent of VocalData's outstanding stock for approximately $27.5 million, consisting of $14.5 million of cash and approximately 780,000 shares of Tekelec common stock, or $13.0 million, based on today's closing price. VocalData will be integrated into Tekelec's Next-Generation Switching business unit.

VocalData, headquartered in Richardson, Texas, is a North American market share leader in IP Centrex, accounting for 44 percent of all IP Centrex lines deployed at the end of 2003, based on 2003 IP Centrex NA line shipments reported in a recent Frost & Sullivan study. Globally, VocalData has an estimated 34 percent share of all IP Centrex lines shipped, according to iLocus' 5th Annual Industry Update on the Global VoIP Market 2004.

Tekelec will leverage VocalData's hosted IP telephony application server to provide an immediate path to IP service delivery and profitability for wireless, wireline and cable operators and their subscribers. The VocalData products will complement Tekelec's next-generation switching product portfolio to enable advanced features such as integration with Outlook and Instant Messenger, IP Centrex with flexible call routing and treatment via customer web portals and find me/follow me capabilities.

In addition, Tekelec will offer VocalData's products and solutions as stand-alone applications to deliver advanced VoIP service options like IP PBX for legacy PBX replacement and Internet-based voice services to enterprise WAN and private VPN services.

Finally, when integrated in Tekelec's EAGLE® 5 Signaling Application System, VocalData's solutions will provide added capabilities to deliver enhanced business and consumer voice services across circuit and packet-based networks, such as customer Web portals for feature activation across traditional phone lines.

Tekelec Inc.

VocalData Inc.