Business & High-Tech Editors

WOODBURY, N.Y.--(BUSINESS WIRE)

July 22, 2002-Comverse Technology, Inc. (NASDAQ: CMVT) today announced that it plans to reduce its workforce by approximately 1,200 people, in response to the ongoing weakness in telecommunications network operators' capital spending. Comverse Technology currently has approximately 5,700 employees.

The staff reductions will be conducted throughout the company's network systems division, which serves the telecommunications network operator market. The company expects to incur restructuring charges, primarily in the third quarter ending October 31, 2002, as a result of these actions. The company expects to provide additional details during its second quarter conference call, which is currently scheduled for September 10, 2002.

Kobi Alexander, Chairman and CEO of Comverse Technology, Inc., said, "The severe global telecommunications capital spending slowdown persists, with no clear indications of stability or improvement. Unfortunately, this environment has led to an enormous number of job losses throughout the telecommunications industry. The current staffing levels and cost structure within our network systems division serving telecom operators were intended to support a significantly higher level of revenue than we are now seeing. We are saddened that industry conditions necessitate this staff reduction, but remain committed to leadership and excellence in our areas of focus, and we plan to align our staffing and structure to continue to serve our customers with a high level of quality and responsiveness."

About Comverse Technology, Inc.

Comverse Technology, Inc. (NASDAQ: CMVT) is the world's leading provider of software and systems enabling network-based multimedia enhanced communications services. More than 390 wireless and wireline telecommunications network operators, in more than 100 countries, have selected Comverse's enhanced services systems and software, which enable the provision of revenue-generating value-added services including call answering with one-touch call return, short messaging services, IP-based unified messaging (voice, fax, and email in a single mailbox), 2.5G/3G multimedia messaging (MMS), wireless instant messaging, wireless information and entertainment services, voice-controlled dialing, messaging and browsing, prepaid wireless services, and additional personal communication services. Other Comverse Technology business units include: Verint Systems (NASDAQ: VRNT), a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise business intelligence; and Ulticom (NASDAQ: ULCM), a leading provider of service enabling network software for wireless, wireline, and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. For additional information, visit the Comverse Technology web site at www.cmvt.com.

Note: This release may contain forward-looking statements that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include: changes in the demand for the company's products; changes in capital spending among the company's current and prospective customers; the risks associated with the sale of large, complex, high capacity systems and with new product introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either the company or its competition; risks associated with rapidly changing technology and the ability of the company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the company operates; risks associated with significant foreign operations and international sales and investment activities, including fluctuations in foreign currency exchange rates, interest rates, and valuations of public and private equity; the volatility of macroeconomic and industry conditions and the international marketplace; risks associated with the company's ability to retain existing personnel and recruit and retain qualified personnel; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of the company with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its subsequent Quarterly Reports on Form 10-Q. These documents are available through the company, or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.