TTI Telecom Enters Burgeoning Russian Telecom Market with PeterStar Win.

Business Editors/High-Tech Writers

HOBOKEN, N.J.--(BUSINESS WIRE)--July 30, 2003

TTI Team Telecom International Ltd. (NASDAQ: TTIL), a leading supplier of Operations Support Systems (OSS) and Business Support Systems (BSS) for telecom service providers, today announced that PeterStar, a telecommunications company providing local, long distance and international services in St. Petersburg, Russia, has purchased the Company's Fault Management module for its network operations center (NOC) in St. Petersburg. System implementation is set for Q3, 2003.

"We sought a comprehensive fault management solution that was both easy-to-use and rapidly scalable," said Victor Koresh, PeterStar's General Manager. "One of the deciding factors in our selection of TTI Telecom's Fault Management solution was the system's ability to filter and consolidate all alarms and events in the network on one single screen. The Fault Management module offers our operations staff a comprehensive, end-to-end, real-time view of our entire multi-vendor, multi-technology network, so they don't have to shift between numerous vendor-specific consoles in order to understand network status. By consolidating operations under one console, we also lower cost of ownership and increase our staff's productivity and reach."

Continued Koresh: "Our selection of TTI Telecom's Fault Management solution is directly in line with our goal of establishing a world-leading NOC. We were extremely impressed with the Fault Management solution's advanced functionalities and capabilities, which will allow us to ensure high network availability and uptime. Another factor that tipped the scale in TTI Telecom's favor was the solution's scalable architecture, which will enable us to easily incorporate and deploy new equipment and grow our customer base without having to add a new management system."

"This win marks our entry into Russia's burgeoning telecommunications market. We are witnessing growing demand for our type of best-in-suite systems from service providers in the country looking for solutions that provide a holistic view over networks containing multiple equipment types from numerous vendors," said Meir Lipshes, TTI Telecom's chief executive officer. We are committed to PeterStar and the Russian telecom marketplace, and look forward to working with the company today and in the future."

"As a technological leader in the Russian service provider market space, PeterStar understands the compelling business value of a vendor and technology-independent solution capable of consolidating operations under one console," continued Lipshes. "I am proud that PeterStar chose our solution as the central management platform for its NOC, and I know that by enabling PeterStar to identify and address network problems in real-time, we will help it meet current and future targets for network availability and customer satisfaction."

After assessing competitors' products, PeterStar chose to implement TTI Telecom's Fault Management solution, which provides a network-wide, prioritized view of alarms coming from the network. The Fault Management solution performs pre-display alarm filtering and reduction to help controllers focus on critical problems, and presents alarms in its Active Alarms screen, color-coded in order of severity so controllers can prioritize repair activities. All alarm information is presented in meaningful reports that help controllers understand alarm situations at a glance, and identify fault trends and trouble "hot spots."

The Fault Management module is tightly integrated with the modules that make up the Fault Management family, facilitating one-click access to further steps in the assurance process, such as trouble ticket creation, root-cause analysis and automated fault correction. The seamless integration speeds problem resolution and improves network uptime, resulting in more satisfied customers and increased revenues.

About PeterStar:

PeterStar is one of the largest telecommunications carriers in Saint-Petersburg and in the Northwest region of Russia. The shareholders of ZAO PeterStar are an American company MITI (71% stake) and IAI Telecominvest (29% stake). Since 1992 the Company has invested over $150 M in the development of its business. At present PeterStar possesses the first city fiber-optics network of over 1500 km. The number of lines connected to the PeterStar network amounts to 100 thousand, allowing the Company to control about 70% of the corporate client market.

About TTI Telecom:

TTI Team Telecom International Ltd. offers advanced, modular and integrated software products and services for Operations Support Systems ("OSS") and Business Support Systems ("BSS") to telecom service providers. TTI Telecom is uniquely positioned to bridge legacy and next-generation, network and service infrastructures with its Netrac-based service assurance, fulfillment and revenue assurance solutions. With Netrac, service providers can reduce operating costs, enhance profitability and launch new, revenue-generating services more rapidly. Over 60 service providers worldwide have deployed TTI Telecom's solutions, supported by offices globally. For additional information, please visit www.tti-telecom.com.

Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed in the Company's SEC filings.