CMS Communications Prepares for Expansion; Tax Credits to Facilitate Expansion in Telecommunications Industry.

Business Editors & High Tech Writers

COLUMBUS, Ohio--(BUSINESS WIRE)--Aug. 1, 2002

Following the successful relaunch of the Traffic Data Management System (TDMS) software acquired from Lucent Technologies, CMS Communications is preparing for expansion. The telecommunications software company has received a 60 percent tax credit from the State of Ohio for a six-year term to expand operations. The $20.3 million expansion, which will be accomplished through a combination of strategic product acquisition and expanded in-house development, is expected to create 50 new jobs and will extend the range of solutions the company offers to providers of communications services.

"Our strategy is to combine product acquisition with focused development to help telecommunications service providers improve network performance on both traditional and next generation networks," said John Cullen, president of CMS Communications. "With the TDMS product, we've been able to provide our customers a rapid return on investment while helping them extend the life of circuit-switched equipment. We intend to move quickly to build on that success."

CMS Communications acquired TDMS in October 2001 and has focused on increasing product functionality, supporting existing customers and reducing costs to convert TDMS into a cash flow positive solution. An enhanced version of the solution, which resulted from CMS Communications' initial development effort, was released in June 2002.

The job creation tax credit was awarded through Ohio Governor Bob Taft's Third Frontier Project, a 10-year, $1.6 billion plan to position Ohio for success in the 21st century economy by expanding the state's high-tech research capabilities and promoting start-up companies in Ohio.

The funding coincides with CMS Communications' move to new 16,000 square foot corporate headquarters in downtown Columbus, which made the company eligible for a payroll tax reimbursement from the City of Columbus.

"We are looking for opportunities to extend the functionality of proven legacy products and to commercialize intellectual property," Cullen said. "We can bring new energy, commitment and customer focus to these products, allowing us to deliver exceptional value today while providing a smooth migration to next generation technologies."

TDMS is an Operations Support System (OSS) product that delivers advanced network monitoring and assurance by collecting, reporting and analyzing traffic data across the network. The system was originally developed by Lucent Technologies, which invested more than $40 million in the product before divesting it to CMS Communications.

Upon acquiring the solution, CMS Communications embarked on an aggressive development program to expand the functionality and range of equipment supported as well as add new, complementary products, including a Web-based real-time monitoring solution and Advanced Analytics product. The Real-Time Monitor application proactively alerts network operators to issues with monitored systems, reducing system downtime and minimizing traffic data loss. Advanced Analytics is a browser-based, distributed application that provides network operators an added layer of system monitoring to help ensure that critical network elements are functioning properly.

About CMS Communications, Inc.

CMS Communications provides profit-enhancing Operations Support System (OSS) solutions to the telecommunications industry. Deployed on many of the largest networks in the U.S., the company's solutions are being used by Incumbent Local Exchange Carriers (ILECs), Competitive Local Exchange Carriers (CLEC) and Interexchange Carriers (IXCs) to improve network efficiency and service quality. With full support for circuit-switched equipment, CMS Communications is helping service providers extend the value of their assets and meet customer needs while supporting the migration to next generation technologies. For more information on CMS Communications, please visit www.cms-c.com.