T-Mobile Germany Signs Deal with Tekelec to Upgrade its Signaling Network.

EAGLE[R] 5 Sigtran Solution Reduces Costs and Increases Efficiencies

MORRISVILLE, N.C. & GRIESHEIM, Germany -- Tekelec (Nasdaq:TKLC), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, today announced a project to upgrade the signaling network of T-Mobile Germany.

The upgrade introduces Sigtran -- Internet protocol (IP)-based signaling system 7 (SS7) signaling, enabling T-Mobile to make a smooth transition to IP-based platforms and services. The deployment, which began in October 2006, will be completed by the middle of 2007.

Tekelec's EAGLE 5 Integrated Signaling System (ISS) supports a variety of applications in addition to SS7 signaling, including gateway functionality, number portability and integrated data acquisition.

"We selected Tekelec because of its proven track record in delivering reliable, high-quality signaling solutions," said Uwe JanUen, vice president of Core Network Engineering at T-Mobile. "Call control and security are essential elements in ensuring that the service we offer our customers is of the highest quality. The EAGLE 5 platform will enable us to do this in the most cost-effective and efficient way."

Introducing Sigtran (SS7oIP) into the signaling network is the "stepping stone" for migrating to session initiation protocol (SIP) signaling in an IP multimedia subsystem (IMS) architecture. The introduction of standards-based Sigtran, which is fully compatible with the existing SS7 signaling network, increases signaling capacity at a lower cost. The underlying IP infrastructure can be leveraged for the parallel evolution from SS7 to SIP -- as SIP signaling is able to traverse over the same quality of service-enabled IP network.

"We are delighted to announce this project with T-Mobile Germany," said Hans-Hermann Gessler, Tekelec vice president of sales in Central and Eastern Europe. "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 with T-Mobile."

Wolrad Claudy, Tekelec's managing director in the Europe, Africa, Asia, and Australia region, added, "By addressing the challenges not only for tomorrow but also for today, T-Mobile will remain at the forefront of the communications industry in a period of major technological change."

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.