Magyar Telekom Selects Comverse and Huawei to Supply IMS Network Infrastructure and Applications for T-Mobile and T-Com In Hungary.

NEW YORK -- Comverse, a subsidiary of Comverse Technology, Inc. (NASDAQ: CMVT), and the world's leading supplier of software and systems enabling network-based multimedia enhanced communication and billing services, and Huawei Technologies Ltd. ("Huawei"), a leader in providing next-generation telecommunications network solutions for operators around the world, today announced that Comverse and Huawei were selected to supply IMS (IP Multimedia Subsystem) network infrastructure and applications for Magyar Telekom's T-Mobile and T-Com business lines in Hungary.

In this project, Huawei and Comverse will provide IMS network infrastructure, converged services, and a range of IP multimedia applications such as Instant Messaging and Presence. With IPTN (IP Telecom Network) technology, the IMS solution can provide end-to-end Quality of Service.

IMS is being adopted across the telecom industry as the standard architecture for next-generation networks, providing users with converged rich media services across all environments and devices. The IMS networks for T-Mobile and T-Com will be among the first of their kind deployed in Europe. The new IMS networks will enable Magyar Telekom to quickly deploy an exciting array of new, innovative and cost-effective services for both consumers and enterprise segments including voice and video calls over IP, fixed-mobile convergence (FMC) services, presence-enabled applications, rich video and multimedia messaging services, personalized content services and converged billing solutions.

"IMS will enable us to deliver converged, rich content of telephony, high-speed Internet, cable television and mobile services over a single converged network, assuring that our subscribers receive maximum value from our quadruple-play offering," said Mr. Peter Janeck, Chief Technical Officer at Magyar Telekom. "As the leading experts in their fields, Comverse and Huawei provide services and infrastructure that will enable us to generate revenues and quicken the return on our IMS investment."

"IMS will reshape the communication space with rich service offerings providing more choices for individuals and increased productivity for enterprises," said Mr. Zeev Bregman, Chief Executive Officer, Comverse. "We are leveraging our decades of value-added service experience to take a leading role with this initial project."

"FMC and the move to all-IP are the clear trends for future networks, and IMS is the core enabler," said Mr. Zhijun Xu, CMO of Huawei. "It's our pleasure to cooperate with Magyar Telekom in these areas. With industry-leading technologies and innovative solutions, Huawei will help Magyar Telekom to stand out in this increasingly competitive environment."

About Comverse

Comverse, a subsidiary of Comverse Technology, Inc. (NASDAQ: CMVT), 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 450 communication and content service providers in more than 120 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 Comverse Technology's website at www.cmvt.com.

About Huawei Technologies Co., Ltd.

Huawei Technologies Co., Ltd. ("Huawei") is a leader in providing next generation telecommunications network solutions for operators around the world. The company is dedicated to providing innovative and customized products, services and solutions to create long-term value and potential growth for its customers. Huawei's products and solutions are deployed in over 100 countries and serve 28 of the world's top 50 operators, as well as over one billion users worldwide. For more information, please visit www.huawei.com.

About Magyar Telekom

Magyar Telekom (NYSE: MTA.N) is the principal provider of telecom services in Hungary. It provides a broad range of services including wireline telephony, data transmission, value-added services, and through its business lines is Hungary's largest mobile carrier and leading internet service provider. Magyar Telekom's majority shareholder (59.21%) is MagyarCom, fully owned by Deutsche Telekom AG. Magyar Telekom holds a majority stake in MakTel, the largest telecom operator of Macedonia and in Telekom Montenegro, Montenegro's largest telecom operator. The business activities of Magyar Telekom are managed by three lines of business: T-Com (wireline services) T-Mobile (mobile services), T-Systems (corporate services). For more information, visit www.magyartelekom.hu.

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 review of the Special Committee, appointed by the Board of Directors on March 14, 2006, of matters relating to the Company's stock option grants, including, but not limited to, the accuracy of the stated dates of option grants and whether all proper corporate procedures were followed; 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; risks associated with the Company's inability to meet NASDAQ requirements for continued listing, including possible delisting; risks of litigation and of governmental investigations or proceedings arising out of or related to the Company's stock option grants or any restatement of the financial statements of the Company; risks associated with integrating the businesses and employees of the GSS division of CSG Systems, International and Netcentrex S.A.; 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, 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.