Comverse and Mobixell Provide Media Adaptation and Optimization for Multimedia Services at O2 in Germany.

WAKEFIELD, Mass. -- Comverse, a subsidiary of Comverse Technology, Inc. and the world's leading supplier of software and systems enabling network-based multimedia enhanced communication and billing services, and Mobixell, a leading provider of innovative mobile multimedia solutions, today announced the deployment of mobile multimedia adaptation and optimization services for German Tier 1 mobile operator O2, part of the Spanish telecommunications group Telefonica S.A. (NYSE: TEF).

O2's implementation of Rich Media Service Center offered by Comverse and Mobixell provides for delivery of mobile multimedia messages and ensures that they are displayed optimally on the handsets of O2's subscribers throughout Germany. The service improves the quality and performance of transcoding for person-to-person (P2P) and application-to-person (A2P) MMS services for O2.

"We selected Comverse and Mobixell because their proven solution has an extensive track record in the mobile multimedia industry," said O2 Head of Messaging, Dr. Wolfgang Wallauer. "The teamwork between Mobixell and Comverse ensured that the deployment was completed rapidly and successfully. Our subscribers will now be able to enjoy the best user experience possible."

"We have worked with Mobixell extensively, deploying many joint solutions for Tier 1 and other operators in Europe, Asia Pacific, and the Americas," said Gadi Bahat, President of Comverse's EMEA Division. "The combination of Mobixell's best-of-breed solution and Comverse's expertise in MMS and mobile messaging enabled us to deliver this solution smoothly for O2."

"As one of the most successful global operators, O2 is an opinion leader with respect to innovative mobile multimedia services," said Amir Aharoni, Chief Executive Officer of Mobixell. "The Rich Media Service Center is a reliable, cost-effective solution for ensuring delivery of multimedia content services that optimizes files to meet the requirements of every handset and network. This will help O2 to introduce new multimedia services rapidly and can contribute to an increase in multimedia content usage and customer satisfaction."

About O2

O2 (Germany) GmbH & Co. OHG, a subsidiary of Telefonica O2 Europe and part of the Spanish telecommunications group Telefonica S.A., offers its post-paid and pre-paid subscribers almost blanket GSM coverage in Germany through its own mobile communications network and a roaming agreement with T-Mobile Deutschland. In addition, as an integrated communications provider, the company provides innovative mobile data services on the basis of GPRS and UMTS technology, as well as mobile phone services and DSL and land line telephony. Telefonica O2 Europe has more than 38 million mobile and land line subscribers in the United Kingdom, Ireland, Slovakia, the Czech Republic and Germany.

About Mobixell

Mobixell Networks provides advanced multimedia technologies and business solutions for mobile operators and service providers. Mobixell's reliable network-based solutions optimize multimedia quality and user experience. With Mobixell's solutions, operators are expanding mobile multimedia messaging services including content distribution, Peer-2-Peer content sharing, User Generated Content communities, mobile advertising, and more. With Mobixell, operators can increase mobile data traffic, reduce support overhead, and realize faster ROI on next-generation infrastructure.

Mobixell's solutions have been deployed at over 70 mobile operators including top-tier carriers in five continents and handle rich media content for millions of subscribers every day. Providers rely on Mobixell to ensure delivery of only the highest-quality multimedia - raising user satisfaction, lowering churn, and safeguarding crucial content revenue streams.

Founded in 2000, Mobixell is headquartered in Boston with offices and operations in North America, UK, Germany, Italy, Netherlands, China, and Japan, with an R&D center in Israel. For more information, visit the company's website at http://www.mobixell.com.

About Comverse

Comverse, a subsidiary of Comverse Technology, Inc. (OTC: CMVT.PK), is the world's leading provider of software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication(SM)portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Over 500 communication and content service providers in more than 130 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. For additional information, visit the Comverse website at www.comverse.com or the Comverse Technology website at www.cmvt.com.

All product and company names mentioned herein may be registered trademarks or trademarks of Comverse or the respective referenced company(s).

Note: This release contains "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 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: the results of the investigation of the Special Committee, appointed by the Board of Directors on March 14, 2006, of matters relating to the company's stock option grant practices and other accounting matters, including errors in revenue recognition, errors in the recording of deferred tax accounts, expense misclassification, the possible misuse of accounting reserves and the understatement of backlog; the impact of any restatement of financial statements of the company or other actions that may be taken or required as a result of such reviews; the company's inability to file reports with the Securities and Exchange Commission; the effects of the delisting of the company's common stock from The Nasdaq National Market and the quotation of the company's common stock in the "Pink Sheets," including any adverse effects relating to the trading of the stock due to, among other things, the absence of market makers; the right of holders of the company's ZYPS to require the company to repurchase their ZYPS as a result of the delisting of the company's shares from NASDAQ at a repurchase price equal to 100% of the principal amount of ZYPS to be purchased; risks of litigation and of governmental investigations or proceedings arising out of or related to the company's stock option grants or any other accounting irregularities or any restatement of the financial statements of the company, including the direct and indirect costs of such investigations and restatement; risks associated with integrating the businesses and employees of the Global Software Services division acquired from CSG Systems International, Netcentrex S.A. and Netonomy, Inc.; 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; aggressive competition may force the company to reduce prices; a failure to compensate any decrease in the sale of the company's traditional products with a corresponding increase in sales of new products; risks associated with changes in the competitive or regulatory environment in which the company operates; risks associated with prosecuting or defending allegations or claims of infringement of intellectual property rights; risks associated with significant foreign operations and international sales and investment activities, including fluctuations in foreign currency exchange rates, interest rates, and valuations of public and private equity; 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; and other risks described in filings with the Securities and Exchange Commission.

These risks and uncertainties discussed above, 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 subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available through the company, or its website, www.cmvt.com, or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. 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.