MORRISVILLE, N.C. -- Tekelec(NASDAQ:TKLC), a leading developer of high-performance networkapplications for next-generation fixed, mobile and packet networks,today. announced that it and Bouygues Telecom have signed a settlementagreement that ends Bouygues' litigation against Tekelec arising outof a 2004 service interruption that occurred in Bouygues' network.

The terms of the settlement agreement are confidential; however,as part of the settlement, Tekelec has agreed to provide $5 million incredits to Bouygues which it can apply to its purchases of productsand services from Tekelec. The impact of the $5 million in credits onTekelec's operating results will be recorded in the first quarter of2007. The other terms of the settlement will not have any impact onthe Company's financial condition or operating results. The settlementagreement also provides for mutual releases and the dismissal of thelawsuit with prejudice.

Frank Plastina, Tekelec's chief executive officer and president,commented "We are very pleased that we have been able to amicablysettle our lawsuit with Bouygues without going to trial. Bouyguescontinues to be a valued customer of Tekelec, and we look forward tostrengthening our relationship as a supplier to Bouygues in thefuture."

Tekelec

Bouygues Telecom