Comverse Technology, Inc. Acquires Amarex Technology, Inc.

Amarex’s Interactive Voice Response-Based Services To Be Available To Comverse’s More Than 275 Network Operator Customers

Amarex, based in New York City, NY, develops software-based intelligent peripherals and service nodes for telecommunications network operators, including British Telecommunications plc (NYSE: BTY) and MCI WorldCom, Inc. (NASDAQ: WCOM), which enable a wide range of interactive voice response-based services. Amarex also develops software for call center-based customer service applications.

Kobi Alexander, Chairman, President and Chief Executive Officer of Comverse Technology, said, “Amarex brings to Comverse a range of interactive voice response-based enhanced services for network operators, such as virtual private network services, 800 services, network announcement services, customer service/customer care services, operator-free collect calling, call forwarding services, and directory services, that complement our current offerings.”

Alexander continued, “Amarex is a proven, established supplier, with software already integrated with Comverse’s platforms, and relationships with customers including British Telecommunications and MCI WorldCom. Comverse, as the world’s leading provider of platforms for multimedia messaging and other enhanced services to the network operator community, brings to Amarex its more than 275 wireless and wireline customers, which include 13 out of the world’s 20 largest telephone companies. By combining forces, we believe that a large number of Comverse’s customers will benefit from the increased number of services they can offer to their residential and business customers.”

Steven Silberstang, President and Chief Executive Officer of Amarex Technology, said, “We are excited about this opportunity to complement Comverse’s network-based enhanced services with those of our own. Comverse is the established technological and market leader, with an unparalleled reputation for quality and service. Together, we will supply 15 out of the world’s 20 largest telephone companies with the revenue-generating enhanced services increasingly demanded by network operators and their customers.”

Comverse Technology’s acquisition of Amarex was effectuated as a tax-free, stock-for-stock transaction, which will be accounted for as a pooling of interests. Under the terms of the agreement, each share of Amarex Technology common stock has been converted into 1.75 of a share of Comverse Technology common stock. Comverse issued approximately 231,000 new shares to Amarex Technology shareholders to complete the transaction, and is assuming options and warrants to issue approximately 80,000 additional shares. One-time merger-related charges are expected not to exceed $1.5 million.

Comverse Technology, Inc., headquartered in Woodbury, New York, designs, develops, manufactures and markets computer and telecommunications systems and software for communications and information processing applications. Comverse’s primary products include: multimedia enhanced services platforms marketed under the names Access NP® and TRILOGUE™ Infinity™, which are currently used by more than 275 wireless and wireline telecommunications network operators to provide revenue-generating services such as call answering, unified messaging (voice, fax, and e-mail in a single mailbox), prepaid wireless services, and other personal communications services; multiple channel, multimedia digital monitoring systems marketed to law enforcement and intelligence agencies under the name AUDIODISK™; and multiple channel, multimedia digital recording, logging, and quality monitoring systems marketed to call centers and other organizations under the name ULTRA™.

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