Liaoning Communications --China Netcom-- Selects Portal Software; Billing Platform Will Enable...

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Jan. 22, 2003

Portal Software (Nasdaq:PRSF) today announced that Liaoning Communications Limited (LCL), a subsidiary of China Netcom Corporation Ltd, has chosen Portal Software's Infranet(R) as the billing platform

LCL selected Portal for its dial-up services in 1999. At that point, LCL offered only one price plan (a monthly flat rate) for its customers. To meet the increasing demand of its customers and to capitalize on a dynamic market, LCL deployed Infranet and was able to launch many additional pricing plans to its customers. Currently, LCL offers over 200 pricing options and flexible payment methods, which has dramatically increased customer satisfaction and retention.

Selecting Infranet for their new broadband business will enable LCL to seamlessly integrate its dial-up business and its broadband business on a single platform. LCL will be able to rapidly develop and launch new value-added services to meet the ever-changing demands of its customers using the company's integrated telecommunication services, which include dial-up, broadband, leased line, and internet access. Launching value-added services was not possible with their legacy system and will mean a significant increase in revenue.

"In a fiercely competitive market, LCL is expanding its customer base and increasing its total revenues by offering broadband services. We are impressed by Infranet's flexibility, scalability, and ease of use. We strongly believe that Infranet is the ideal platform for our expansion into the broadband business," said an LCL spokesperson.

"Service providers entering the broadband market find that they must be able to manage and allocate third-party content services. Portal has enabled many communication service providers to meet this challenge. We look forward to contributing to LCL's success in the broadband market," said John Tull, vice president and general manager, Portal Software Asia Pacific.

About Portal Software, Inc.

Portal Software develops product-based customer management and billing solutions for communications and content service providers. Portal's convergent platform enables service providers to deliver voice, data, video, and content services with multiple networks, payment models, pricing plans, and value chains. Portal's unique approach is designed to provide its customers superior return on innovation with maximum value and lower total cost of ownership. Portal's customers include thirty-five of the top fifty wireless carriers as well as organizations such as Vodafone, AOL Time Warner, Deutsche Telekom, TELUS, NTT, China Telecom, Reuters, Telstra, China Mobile, Telenor Mobil, Vivendi, and France Telecom. For more information, please visit www.portal.com.

Infranet and the Portal logo are U.S. registered trademarks, and Portal is a trademark of Portal Software, Inc. All statements made in this press release are made only as of the date set forth at the beginning of this release. Portal undertakes no obligation to update the information in the event facts or circumstances subsequently change.