MegaFon Selects Tekelec's Signaling Platform; EAGLE(R) 5 Supports Operator's Strong Subscriber Growth.

MORRISVILLE, N.C. -- Tekelec (NASDAQ: TKLC), the leading developer of telecommunications products for next-generation fixed, mobile and packet networks, today announced that MegaFon, one of Russia's largest GSM mobile operators, has selected the Tekelec EAGLE 5 signaling platform. Following a lengthy and highly competitive review process and a successful trial, MegaFon signed a multi-million dollar contract in December 2005.

MegaFon, whose network covers 78 regions of Russia, has recently experienced dramatic growth, with its subscriber base increasing from 13.5 to 22 million people during 2005. The company was looking for a signaling solution that could handle the increasing volume of voice and short message service (SMS) traffic, which was impacting the signaling network, as well as enabling the future roll out of the Internet protocol multimedia subsystem (IMS) and applications such as advanced messaging.

With its packet-based technology, the EAGLE 5 can handle the signaling requirements of complex networks. The same platform delivers full signal transfer point (STP) capabilities and a host of applications such as mobile number portability, virtual home location register (HLR), equipment identity register (EIR) and SMS spam prevention. The solution also includes the next-generation signaling over IP protocols defined by IETF and 3GPP to cope with the future expansion and evolution of the MegaFon signaling network.

In May of 2005, Tekelec solutions completed the homologation and certification processes for deployment in Russian networks, through on-site field tests performed in the three million-subscriber network of Mobicom-Caucas, the North Caucasian subsidiary of MegaFon. MegaFon's choice today recognizes Tekelec's strong commitment to the challenging Russian marketplace.

The Russian original equipment manufacturer (OEM) partner involved in the MegaFon implementation is ZAO NEC Neva Communications Systems, a recommended equipment provider to many SvyazInvest telecommunications companies. As announced (http://www.tekelec.com/news/prdetail.asp?prnum=576) in January 2006, NEC Neva provides regional distribution and sales support for Tekelec's signaling and business intelligence solutions. NEC Neva is customizing Tekelec's industry-leading next-generation switching products and extending sales and distribution of the joint products in the Russian and Commonwealth of Independent States (CIS) markets. Products include the Tekelec 9000 Distributed Switching Solution and the Tekelec 6000 VoIP Applications Server.

"We are delighted to announce this new contract with MegaFon for its entire network," said Wolrad Claudy, Tekelec's managing director for EMEA. "This implementation demonstrates our increased traction with tier one operators, and we are confident that this will be the first of a number of new contracts we win this year."

Grigory Mantel, general director, Tekelec Russia and CIS, said, "Tekelec is already an established vendor in Russia, and we will continue to work with trusted partners such as NEC Neva to increase our presence in this fast-growing market."

About MegaFon

MegaFon is the first Pan-Russian GSM 900/1800 mobile carrier. The company was formed in May 2002 by renaming and changing the business organization form of ZAO North-West GSM and merging with ZAO Sonic-Duo (Moscow), ZAO Mobicom-Kavkaz, ZAO Mobicom-Center, ZAO Mobicom-Novosibirsk, ZAO Mobicom-Khabarovsk, ZAO Mobicom-Kirov, OAO MCC -Povolzhie, ZAO Volga GSM, and ZAO Ural GSM. The licensed territory of MegaFon covers the whole Russian population of 145 million. Today, the company serves more than 23 million subscribers.

About Tekelec

Tekelec is a leading developer of now and next-generation signaling and switching telecommunications solutions, business intelligence tools and value-added applications. Tekelec's innovative solutions are widely deployed in traditional and next-generation wireline and wireless networks and contact centers worldwide. Corporate headquarters are located in Morrisville, N.C., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.