PORTAL SOFTWARE ANNOUNCES AGREEMENT TO PROVIDE SOFTWARE PLATFORM FOR BILLING OF AOL SERVICES.

Portal Software, Inc. (Nasdaq:PRSF), has announced a multi-million dollar, multi-year contract with America Online under which America Online will license Portal's Infranetsoftware platform. America Online plans to use Infranet business management and billing software to support a wide range of services.

"This contract with America Online is a major milestone for Portal Software and clearly demonstrates our ability to support the largest, most innovative market-leading companies," said John Little, president and CEO of Portal Software, Inc. "We're very excited America Online chose Portal and look forward to supporting their innovative products and services over the coming years."

Robert Horton, Senior Vice President of Corporate Information Billing Systems at America Online said, "AOL is constantly looking for ways to enhance our members' online experience, and we look forward to working with Portal Software to utilize the extensive functionality and flexible architecture that the Infranet platform provides."

Portal Software, Inc. provides software to manage next generation communications and e-services. The Infranet software platform enables service providers to rapidly develop new services, define optimal business models and price plans, and bill their users. Portal's software is deployed by eighty percent of the world's 30 largest communications services companies supporting wireless, broadband, Internet, and other e-service offerings. Customers include Qwest Communications, Sprint, NTT, Deutsche Telekom, Telenor Mobil AS, China Telecom, and France Telecom. Portal Software employs about 1,350 people across 42 offices worldwide. For more information, visit www.portal.com. n