Trading Statement

Intec Telecom Systems PLC 22 November 2006 For immediate release 22 November 2006 Intec Telecom Systems PLC Trading Update Intec Telecom Systems PLC ("Intec" or "the Company"), a leading supplier of software, solutions and services to the global telecoms industry, today announces a trading update for its financial year ended 30 September 2006. On 7 August Intec issued a trading update indicating that, due to consolidation among certain major customers leading to contract postponements and delays, it expected that revenues for the full year would fall in a range between £113m to £120m. The Board noted at the time that 'it continues to be difficult to predict the quantum and timing of specific purchasing decisions and the Board will therefore continue to review the likely outcome for the year.' Against a backdrop of continuing commercial effects resulting from the consolidation in the US telecommunications market and the inherent uncertainty this is creating, Intec has taken a prudent view with regard to significant but substantially complete contracts with one US customer and has deferred recognition of £5.5m of licence fees where payments have yet to be received, which directly impacts EBITDA for FY2006. At the time of the 7 August trading statement it was expected that matters relating to this customer would have been satisfactorily resolved. As a consequence, the Board now believes that revenue will fall below the previously stated range, at not less than £111.7m and EBITDA before exceptionals will be not less than £3.2m. Subsequent to the 7 August announcement, Intec has undertaken a thorough review of its operations which has resulted in the acceleration of plans to move delivery and development resources to lower-cost offshore locations. This will lead to a one-off restructuring charge of £4.0m in the FY2006 accounts, which will deliver an equivalent or greater payback in FY2007. A conference call for analysts will be held today at 3.30 pm, please contact Smithfield for details. Final results will be announced on 13 December 2006. For further information, please contact: Intec Telecom Systems PLC www.intecbilling.com Kevin Adams, Chief Executive Officer +44 (0)1483 745 800 Andrew Rodaway, Director of Marketing & +44 (0)7768 808082 Communications Smithfield Consultants +44 (0)20 7360 4900 Sara Musgrave intec@smithfieldgroup.com NOTES TO EDITORS About Intec Telecom Systems PLC Intec supplies billing software solutions to over 60 of the world's top 100 telecoms carriers and is one of the world's fastest growing major BSS/OSS (business and operations support systems) vendors. Intec's 350+ customers include AT&T, BellSouth, Cable & Wireless, The Carphone Warehouse (UK), China Unicom, Deutsche Telekom, Eircom (Ireland), France Telecom, Hutchison 3G, O2, Orange, T-Mobile, Telefonica, Vodafone, Virgin Mobile, Vivo and Verizon. Intec has a comprehensive and expanding range of solutions and services ranging from market leading mediation and convergent billing products such as their Wholesale Business Management solution through to innovative IPTV solutions. Intec works closely with its customers, many of whom have been with Intec since its inception, to provide the highest standards of performance, flexibility and robustness to help carriers service their customers effectively and profitably. Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has over 1,600 staff and 31 offices in 25 countries. For more information visit www.intecbilling.com This information is provided by RNS The company news service from the London Stock Exchange
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