Comverse Technology Announces Preliminary Estimates For Third Quarter Of Fiscal 2001.

Business Editors

WOODBURY, N.Y.--(BUSINESS WIRE)--Oct. 24, 2001

Comverse Technology, Inc. (NASDAQ: CMVT), today announced preliminary estimates for the current quarter.

Comverse Technology anticipates sales for its third quarter of fiscal 2001, ending October 31, 2001, will be approximately $295 million, and third quarter diluted earnings per share will be approximately $0.11, excluding an expected charge for the write-down of investments.

In addition, the company expects reductions in orders backlog and advance payments from customers, and an increase in accounts receivable.

"The capital spending and macro-economic environment has deteriorated further over the past several weeks, causing many of the world's leading technology companies to post significant losses. Despite these conditions, our operations remain profitable," said Kobi Alexander, Chairman and CEO of Comverse Technology. "At the same time, we are optimistic about the long-term growth prospects for Comverse's markets and our leadership position within those markets, and believe we continue to expand our market share. Our products are essential to the generation of traffic and revenue for telecommunications network operators, and play an important role in surveillance and monitoring for security, law enforcement and business intelligence applications. We have very strong products and technology, have a customer base unparalleled in our industry, and have a solid balance sheet, which includes approximately $1.7 billion in cash, cash equivalents, and short-term investments."

The Company is presently undertaking a comprehensive review of its operations, and plans to align its cost structure, including staffing levels, to reflect the current business climate.

Further details, including revised guidance and a discussion of the company's outlook for the fourth quarter and beyond, will be provided by the Company during its third quarter conference call, tentatively scheduled for late November or early December. Conference call timing and dial-in information will likely be made available during the week of November 19th.

About Comverse Technology

Comverse Technology, Inc. is the world's leading provider of software and systems enabling network-based multimedia enhanced communications services with over 375 customers, in more than 100 countries. Comverse provides a wide range of solutions enabling call answering with one-touch call return, short messaging services, IP-based unified messaging (voice, fax, and email in a single mailbox), 2.5G/3G multimedia messaging (MMS), wireless instant messaging, wireless data and Internet-based services, voice-controlled dialing, messaging and browsing, prepaid wireless services, and additional personal communication services. Other Comverse Technology business units include: Comverse Infosys, a world leader in the development, manufacture and marketing of intelligent digital voice, video and data recording and content management applications for the security, surveillance, law enforcement and contact center markets; and Ulticom, a leading provider of service enabling network software for wireless, wireline, and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. For additional information, visit the Comverse Technology web site at http://www.cmvt.com.

Note: This release contains forward-looking statements that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include: changes in the demand for the company's products; changes in capital spending among the company's current and prospective customers; the risks associated with the sale of large, complex, high capacity systems and with new product introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either the company or its competition; risks associated with rapidly changing technology and the ability of the company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the company operates; risks associated with significant foreign operations and international sales, including fluctuations in foreign currency exchange rates and interest rates; the volatility of macroeconomic and industry conditions and the international marketplace; risks associated with the company's ability to retain existing personnel and recruit and retain qualified personnel; risks associated with volatility in the capital markets and declines in interest rates and equity values; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of the company with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its subsequent Quarterly Reports on Form 10-Q. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.