NEW YORK -- Comverse Technology, Inc. (NASDAQ: CMVT), today announced that itssubsidiary, Comverse Ltd., completed its acquisition of privately-heldNetcentrex S.A., for approximately $159 million in cash, subject to certainpost-closing adjustments and a contingent earn out of up to $16 millionbased upon achievement of certain financial targets by the Netcentrexbusiness.

The combination of Netcentrex, a leader in network-based software enablingIP-based voice-video-data ("triple-play") and FMC (fixed-mobile convergence)solutions, with Comverse's portfolio of value-added services and billingsolutions, is expected to benefit operators deploying services in the VoIP(Voice-over-Internet Protocol) and IMS (IP Multimedia Subsystem) domains.

Raz Alon, interim Chief Executive Officer of Comverse Technology, said, "Theacquisition of Netcentrex is yet another example of our strategy to augmentthe strong product portfolio and market presence of our business units withtalented people and leading technologies focused on emerging growthopportunities. We believe this combination opens new avenues of growth forComverse, and strengthens its position as a leader in VoIP- and IMS-relatedsolutions."

Zeev Bregman, Chief Executive Officer of Comverse, Inc., the company'snetwork systems subsidiary, said, "Netcentrex complements our productportfolio, technology, and strategic direction. Netcentrex's leadingtelco-grade application server, rich IP Centrex, Class 5 and video servicesand proven market position (with over 3M live VoIP lines), together withComverse Inc.'s telecom value-added services and billing leadership, createa synergetic, unique VoIP, FMC and IMS offering serving wireless, cable,fixed, MVNO and Internet-based communication service providers."

Olivier Hersent, Chairman and CTO of Netcentrex, said, "We are pleased tojoin the Comverse team. We believe the combination of Comverse andNetcentrex will benefit our customers, and will enable us to be a leadingprovider in the emerging IMS and FMC domains."

Comverse Technology Inc. (Nasdaq: CMVT)