TTI Telecom Reports Fourth Quarter and Year-End Fiscal 2006 Financial Results.

PETACH TIKVA, Israel -- TTI Team Telecom International Ltd. (NASDAQ: TTIL), ('the Company'), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced results for the fourth quarter and fiscal year ended December 31, 2006.

Total revenues for the fourth quarter were $10.1 million, compared with $12.3 million for the fourth quarter of fiscal 2005. Operating loss for the quarter was $3.3 million compared with an operating income of $0.8 million for the same quarter last year. Net loss was $3.0 million, or $0.16 per diluted share, versus a net income of $0.06 million, or $0.00 per diluted share for the same period in 2005. The Company ended the fourth quarter with approximately $32.5 million in cash and liquid investments.

Total revenues for the fiscal 2006 were $46.1 million, compared with $43.2 million for fiscal 2005. Operating loss for the year was $4.7 million, compared with an operating loss of $6.6 million reported for fiscal 2005. Net loss was $3.8 million, or $0.20 per diluted share, compared with a net loss of $9.1 million, or $0.72 per diluted share, for fiscal 2005.

Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, "Our performance in fiscal 2006 was impacted by a weak CAPEX environment for OSS in North America, offsetting strong demand for our solutions from service providers migrating to converged and next-generation networks in the rest of the world. Despite these market-specific challenges, we acquired new customers and leveraged our install base for follow-on orders. In light of the ongoing weakness in our largest market by revenue, however, we initiated a cost reduction program in the fourth quarter intended to align our cost structure to expected revenues."

Concluded Lipshes, "We enter 2007 a more focused and efficient organization, supported by a strong balance sheet and solid backlog. Coupled with continued expense management, the potential for a gradual recovery in North America and strong sales momentum in the rest of the world, we have in place the requirements for a successful 2007 and beyond."

Conference Call Information:

A conference call has been scheduled for 9:00am ET today, February 15, 2007, during which management will discuss the Company's performance for the quarter. The call can be accessed via live webcast through the Investor Relations portion of the TTI Telecom web site, www.tti-telecom.com. A telephone replay of the call will also be available starting one hour after the completion of the call until 11:00pm ET on February 22, 2007. To access the replay, please dial +1.888.286.8010 (International dialers can call +1.617.801.68888), participant code "26062089". The webcast of the conference call will be archived on the TTI Telecom web site.

About TTI Telecom:

TTI Team Telecom International Ltd. offers advanced, modular and integrated software products and services for Operations Support Systems (OSS) to communications service providers. TTI Telecom is uniquely positioned to bridge legacy and next-generation, convergent 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 70 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.

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