TNS Extends Global Reach across the Middle East with Direct Market Access to Gulf Exchanges.

NEW YORK -- Transaction Network Services, Inc. (NYSE:TNS), a leading provider of business-critical network and data communications services for transaction-oriented applications, and the Kuwait and Middle East Financial Investment Company (KMEFIC) have signed a deal which will allow traders to establish direct links with the growing financial markets in the Gulf.

KMEFIC's new FIX Gateway service offers direct market access (DMA) to exchanges in Kuwait, Dubai, Abu Dhabi, Muscat, Doha and Bahrain. Trades are conveyed via a managed, highly secure connection into TNS' Secure Trading Extranet. This new deal allows TNS' customers, who are already on TNS' extranet, to access the KMEFIC FIX Gateway.

"Linking into the TNS network gives KMEFIC a great opportunity to connect to world markets and makes trading with the Middle East easier and more profitable for brokers through a single point of connection," said Abdul Mohsin Qarooni, General Manager of IT and online trading at KMEFIC.

Established in 1984, KMEFIC offers an array of investment products and services, ranging from local financial instruments to a broad suite of international funds, portfolios and managed accounts. During 2004 it became the first company to offer online stock trading services on the Kuwait Stock Exchange.

TNS currently has significant connectivity in the Middle East as a result of its long-standing relationship with Ivory Software. Ivory Software is a leading provider of trading connectivity in the region as a result of its connections throughout Israel with a platform offering compliance, trading and post-trade functionality with an integrated and fully supported FIX network.

"The financial markets are not defined by geographic boundaries and it is part of our ongoing strategy to extend our services to a global marketplace as business demands," said Alan R. Schwartz, Executive Vice President and General Manager, Financial Services Division, TNS. "We're delighted to be helping our clients capitalize on the opportunities presented by electronic connectivity and growing cross border trade. The Middle East is a vibrant market and we will strive to increase our presence in order to offer our top-tier products and services as our clients branch out into new territories."

The TNS network connects over 1,000 financial community end-points, representing more than 450 buy and sell-side institutions, market data and software vendors, exchanges and alternative trading venues. Financial institutions using TNS' network can exchange a variety of trade-related messages, including indications of interest, order routing and trade executions.

TNS will be exhibiting at the 2006 FPL Americas Electronic Trading Conference, Booth #16 on October 24-25, 2006 at the New York Marriott Marquis Time Square, New York, NY. For more information please visit http://fixprotocol.org/americasconference2006.

About Transaction Network Services, Inc.

Transaction Network Services is one of the leading providers of business-critical, cost-effective data communications services for transaction-oriented applications. TNS provides rapid, reliable and secure transaction delivery platforms to enable transaction authorization and processing across several vertical markets and trading communities.

Since its inception in 1990, TNS has designed and implemented multiple data networks, each designed specifically for the transport of transaction-oriented data. TNS networks support a variety of widely accepted communications protocols and are designed to be scalable and accessible by multiple methods. TNS network technologies have been deployed in the United States and internationally, and TNS networks have become preferred networks servicing the trading community, wireless and wireline carriers, and the card processing and dial-up automated teller machine markets. For further information about TNS transaction solutions, please refer to www.tnsi.com.

The statements and information contained in this press release that are not descriptions of historical fact may contain forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond TNS' control, which could cause actual results to differ materially from historical results or performance and from any opinions or statements expressed with respect to future periods. TNS disclaims any obligation to update or correct any forward-looking statements made herein due to the occurrence of events after the issuance of this press release.