Corsair Announces First U.S. Customer for PrePay Open; Union Telephone Chooses Corsair's Products to Help Attract Customers from New Market Segments.

Business Editors/High-Tech Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--July 25, 2000

Corsair Communications, Inc. (Nasdaq:CAIR), a leading provider of software and system solutions for the global wireless industry, today announced its first U.S. customer for PrePay Open and PhoneFuel, Wyoming-based Union Telephone. Union Telephone chose PrePay Open because it gives them a cost-effective, signaling-based wireless prepaid billing solution with the functionality of WIN II now and the ability to easily migrate to the WIN II standard when the industry is ready. With PrePay Open, Union Telephone can integrate new products like Corsair's mCommerce (mobile commerce) product, PhoneFuel which allows prepaid subscribers "one touch" fund replenishment via the Web or a WAP-enabled phone. This will allow Union to target new market segments and increase their prepaid wireless subscriber base.

"We were looking for a proven prepaid solution that gives us the flexibility to easily migrate to the WIN II standard with the scalability and cost-effectiveness to grow our subscriber base," said John Woody, vice president and chief engineer at Union Telephone. "With PrePay Open we can more effectively target new market segments like families and small businesses looking to manage their spending, and offer exciting new features with the addition of PhoneFuel to provide our subscribers the ability to easily replenish their accounts any time anywhere."

Previously, Union Telephone had used a handset-based prepaid solution that meant their subscribers had to purchase costly phones and their marketing programs could not be released in real-time. PrePay Open gives Union Telephone a cost-effective solution enabling the carrier to scale to accommodate a broader range of subscribers, while offering a wide range of programs targeted to meet the needs of their subscribers. Union Telephone will install PrePay Open on their Nortel infrastructure.

"As a forward-looking carrier developing services in the wireless, Internet and broadband space, Union Telephone is a perfect fit for us," said Carla Schneiderman, vice president of marketing, business development and sales at Corsair. "Corsair's strategy is to continue to provide flexible, scalable and cost effective services like PrePay Open and PhoneFuel that leverage our real-time billing engine and allow carriers like Union Telephone to grow their businesses while constantly staying one step ahead of the competition by implementing systems today that are built to meet and anticipate the future demands of consumers."

About PrePay Open

PrePay Open is Corsair's infrastructure-independent wireless prepaid billing system. Based upon PrePay, Corsair's metered billing system for Ericsson-infrastructure networks, Prepay Open delivers the scalability, performance, and upgradeability of a signaling-based prepaid billing system across multiple wireless infrastructures and air interfaces. PrePay Open also provides carriers with the investment protection of a software-only upgrade when the industry migrates to WIN Phase II. PrePay Open supports the TDMA, CDMA, AMPS, and GSM air interfaces, and is based upon the proven performance of PrePay, which manages more than 11 million wireless subscribers in North and South America and Europe.

About PhoneFuel

PhoneFuel is an mCommerce application that enables carriers to substantially reduce customer care costs and ultimately increase margins by using electronic replenishment instead of phone cards and allowing subscribers to directly manage their accounts. With PhoneFuel, subscribers gain easy access to their account information, including account balance, call detail and payment history. In addition, PhoneFuel provides PrePay subscribers with "one touch deposit" for replenishing PrePay funds over a WAP-enabled phone or the Internet. PhoneFuel can also help wireless carriers reduce customer churn by increasing customer satisfaction and offering a competitive differentiating service.

About Union Telephone

Union Telephone, founded in 1914, is a privately held, family-owned and operated local telephone company. Union Telephone's product offerings include local telephone, cellular, Internet services, long distance, and cable TV. The cellular footprint of the company is 58,000 square miles, covering areas throughout western Wyoming, northwestern Colorado, and parts of Utah. Union Telephone's roaming partners include Western Wireless and AT&T.

About Corsair Communications, Inc.

Corsair Communications, Inc. (http://www.corsair.com) headquartered in Palo Alto, Calif., is a leading provider of real-time business solutions for the global wireless industry. The product portfolio includes PhonePrint(R), PrePay(tm), PrePay Open(tm) and PhoneFuel(tm). PhonePrint is currently installed in more than 180 markets worldwide and has prevented more than 300 million fraudulent cellular calls. PrePay, the company's real-time wireless billing system, is now installed in over 12 markets and supports more than 11 million wireless subscribers.

Note: This press release contains forward-looking statements regarding the future financial performance of the company and acceptance of the Company's PrePay product that involve risks and uncertainties. Actual results may differ materially because of various risks, including risks associated with product sales and installation, the ability to bring new products to market, successful completion of potential transactions, economic and political instability in international markets, demand for Corsair's products and services, continued growth of the wireless telecommunications industry, and other risks associated with Corsair's business. For an expanded discussion on such risks, please see the documents filed by Corsair Communications, Inc. with the U.S. Securities and Exchange Commission.