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Intec Telecom Sys (ITL)

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Thursday 31 May, 2001

Intec Telecom Sys


Intec Telecom Systems PLC
31 May 2001

            Intec Telecom Systems PLC agrees to acquire Dataphone

              Staff, software products and customers complement

                     Intec's 'revenue assurance' strategy

London, 31 May 2001 - Intec Telecom Systems PLC ('Intec'), a leading provider
of telecoms Operations Support Systems ('OSS'), today announces that it has
entered into an agreement to acquire Dataphone Limited ('Dataphone'), a
private UK based provider of telecoms software solutions. The total
consideration is £1.1 million, to be satisfied in cash (to be paid from
Intec's current cash resources of £23 million). For the year ended 30 November
2000, Dataphone had sales of approximately £1.3 million, which included £
500,000 of recurring revenue from support contracts, and EBIT loss of
approximately £1.1 million due, in part, to substantial investment in product
development. As the business is integrated, operating synergies are expected
to be achieved and the transaction is expected to boost earnings potential in
the medium term.

Dataphone, established in 1994 by ex-Nortel engineers, has developed a number
of telecoms revenue assurance software products which it has sold to customers
that include multiple NTL sites, Global Crossing and IDT, among others. Intec
will integrate Dataphone's products, 19 staff, and business operations into
its current structure. Dataphone has offices in the UK and Barcelona, Spain.

'Acquiring Dataphone helps us strategically in two key ways,' said Intec's
Executive Chairman, Mike Frayne. 'Firstly, we will gain several complementary
software products, in areas such as telecom fraud detection and billing
revenue assurance, that usefully extend our current offering. In addition, we
will gain staff resources with directly relevant experience in our main
markets of mediation and billing, which is important as we gear up for growth
across the business, particularly in next-generation networks.'

Richard Smith, Dataphone's Managing Director added, 'Intec's strong reputation
and global operations will allow us to take our vision for our products
forward in way that would be difficult as a standalone business. We also bring
core expertise in several disciplines of growing interest to Intec,
particularly in the convergent space, which will help it achieve its business
goals in areas such as next-generation networks.'

Dataphone's products lie in four areas - convergent mediation, fraud detection
and analysis, interconnect reconciliation and analysis, and revenue assurance
and regulatory compliance reporting. The products, which all fall within
Intec's existing revenue assurance strategy, are modern client/server
solutions designed around a common technical architecture that allows fast
integration and extension.

Dataphone's staff of 19 people also includes sales, support, marketing and
experienced telecoms and IT industry management. The current management team
have backgrounds in major companies that include Nortel, Olivetti, TNT and
Thorn-EMI. In addition to its UK offices in Leicestershire, Dataphone has a
sales and support subsidiary in Barcelona, Spain.

For further information:

Mike Frayne, Executive Chairman, Intec Telecom Systems PLC
+44 (0) 1483 745800
[email protected]

Andrew Rodaway, Intec Telecom Systems PLC
+44 (0) 7768 808082
[email protected]

Cubitt Consulting
Fergus Wylie/Serra Balls
+44 (0) 20 7367 5100
[email protected]

Intec Telecom Systems PLC

Intec Telecom Systems PLC is a leading provider of Operational Support Systems
('OSS') for telecoms companies, with over 200 customers for its products
worldwide. It is the leader, by market share, of packaged intercarrier billing
and settlement software, with more installations and more telecom operators,
including many PTTs, using its solution than any competitor. Intec is also a
leader in 'convergent mediation' with its Inter-mediatE(TM) product. Intec's
core billing product, InterconnecT(TM), is a software platform which allows
billing and settlement between telecommunication operators to occur reliably,
accurately and speedily. Intec's US inter-carrier billing solution,
InterconnecT CABS, is used by over 40 RBOCs, ILECs and CLECs in the US.
Intec's convergent mediation product, Inter-MediatE, allows network event data
for both conventional and unswitched (IP) communications to be collected and
processed for use in billing and other OSS systems.

Intec's billing customer base includes, amongst others, MCI Worldcom, COLT
Telecommunications, France Telecom, Swisscom, T-Mobile International, Thus and
Telkom South Africa. Intec's mediation customer base includes, amongst others,
Bell South, Telstra, Cable and Wireless, ITXC, Verizon, US Wireless, and

Other product offerings include InterconnecT ITU for settlement based on ITU
rules, the InterconnecT ASP service, and Maxi-routE, a Least Cost Routing
system. Founded in 1997, Intec was listed on the London Stock Exchange (code:
ITL) in June 2000.

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