Nevada Telephone Deploys Tekelec Switching Solutions to Deliver Enhanced VoIP Services.

Tekelec's Switching Portfolio Reduces Costs While Supporting Subscriber Growth

MORRISVILLE, N.C. -- Tekelec (NASDAQ: TKLC), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, today announced Nevada Telephone, a Las Vegas-based competitive local exchange carrier (CLEC) has deployed Tekelec's entire switching portfolio including the Tekelec 9000 Distributed Switching Solution, Tekelec 7000 Voice over Internet protocol (VoIP) Class 5 Packet Switch and Tekelec 6000 VoIP Application Server.

The integrated switching solutions have enabled Nevada Telephone to offer new, high-demand VoIP services and add thousands of subscribers to its customer base, generating millions of dollars in revenues with a significant return on investment over the next five years.

Nevada Telephone originally operated as an unbundled network elements platform (UNE-P) carrier and was paying an incumbent local exchange carrier (ILEC) a high rate for minutes of use (MOUs) as well as additional fees. With the help of Tekelec's switching solutions, the operator has transformed itself into a facilities-based carrier, eliminating UNE-P fees and launching VoIP-based services in new markets.

Most recently, Nevada Telephone replaced its existing switch with the Tekelec 9000 to support the rapid growth of its subscriber base from 115 customers to more than 24,000. Tekelec's distributed switching solution is a feature rich platform that provides increased VoIP capacity and improved end-to-end service quality.

The carrier also has deployed the Tekelec 6000 to introduce new features for enhanced VoIP services, such as unified messaging, softphone, user-scheduled and on-demand conferencing, find-me and Web Portal capabilities that support visual voicemail, click-to-dial and integration of directories and calendars with telephony features.

These solutions enhance the operator's existing Tekelec 7000 Class 5 Packet Switches, which were deployed beginning in 2004 to enable Nevada Telephone's initial launch of VoIP services. The Tekelec 7000 is a highly flexible, reliable solution that fully integrates with either IP or time division multiplexing (TDM) interfaces, enabling a smooth network migration to VoIP and reduced operational costs for operators of all types.

"Tekelec's next-generation switching solutions have enabled us to launch and expand our portfolio of VoIP services to support our growing subscriber base, generate significant revenues, and realize a significant return on investment," said Bob Jankovics, chief executive officer of Nevada Telephone. "These results, combined with Tekelec's outstanding reputation for providing responsive, top-quality technical support and cost-effective solutions, have contributed significantly to our success as a facilities-based operator."

Jay Whitehurst, president and general manager of Tekelec's Switching Solutions Group, added, "Nevada Telephone is a powerful example of the benefits delivered by our combined next-generation switching portfolio. By replacing a competitor's softswitch with Tekelec's solution, Nevada Telephone can cost effectively support service delivery on a local, regional and national scale while providing advanced VoIP features and services that are critical for attracting and retaining subscribers in a competitive marketplace."

About Nevada Telephone

Founded in 1995, Nevada Utilities, Inc., DBA Nevada Telephone, a woman-owned business (Anita Jankovics), is a full-service telephone company that serves approximately 99% of the state of Nevada, including the Las Vegas and Reno metropolitan areas, and the state's rural regions. It provides local residential service, VoIP service, high-speed DSL, business service, ISDN service, inside wire and jack installation, and wiring of homes and businesses.

About Tekelec

Tekelec is a high-performance network applications company that is accelerating the transition to IP Multimedia Subsystem (IMS) networks for service providers around the globe. With its experience at the intersection of network applications and session control, Tekelec creates highly efficient platforms for managing media and delivering network solutions. Corporate headquarters are located near Research Triangle Park in Morrisville, N.C., U.S.A., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.