Last updated on April 25, 2014 at 1:22 EDT

Adverse Decision Rendered in an Appeal by MTS of an Israeli Tax Ruling for the 1997 to 1999 Period

October 24, 2012

RA’ANANA, Israel, October 24, 2012 /PRNewswire/ –

MTS – Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global
provider of business support systems (BSS) for comprehensive telecommunication management,
telecommunications expense management (TEM) solutions and customer care & billing (CC&B)
solutions, today announced that the Tel-Aviv District Court rendered its decision relating
to the Company’s appeal of a tax ruling of the Israeli tax authorities that was issued
with respect to the 1997 to 1999 period.

According to the decision, the Company’s claims were partly accepted and partly
rejected, which will require MTS to increase the provision already made in its financial
statements for this tax exposure. The Company has not as yet received an assessment from
the tax authorities as to the amount they believe is due. Accordingly, the Company and its
tax counsel are working to determine the financial impact of the ruling, which will be
included in the Company’s third quarter financial statements.

The Company is studying the decision and seeking the guidance of its tax counsel to
determine whether there are grounds for appealing this decision to the Supreme Court.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative products
and services for comprehensive telecom expense management (TEM) and enterprise mobility
management (EMM) solutions, telecom billing solutions used by telecommunication service
providers and mobile virtual network operators and enablers (MVNO/MVNE) solutions used by
mobile service providers.

The MTS TEM Suite solution enables enterprises to gain visibility and control of
strategic fixed and mobile telecom assets, services and IT security policies that drive
key business processes and crucial competitive advantage. The MTS cloud, consulting and
managed services solutions — including integrated management of invoices, assets,
wireless, optimization, usage, mobile device management (MDM), procurement, help desk and
bill payment ,along with dashboards and reporting tools — provide professionals at every
level of the organization with rapid access to concise, actionable data.

MTS’s solutions for telecommunication service providers are used worldwide by wireless
and wireline service providers for interconnect billing, partner revenue management and
for charging and invoicing their customers. MTS provides MVNE service to allow quick
launch of new MVNO initiatives in a pay as you grow and revenue share models. In addition,
MTS has pre-configured solutions to support emerging carriers of focused solutions (e.g.
IPTV, VoIP, WiMAX, MVNO) to rapidly install a full-featured and scalable solution.

Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries
in the United States, Hong Kong and The Netherlands as well as through OEM partnerships
with Siemens, Phillips, NEC and other vendors. MTS shares are traded on the NASDAQ Capital
Market (symbol MTSL). For more information please visit the MTS web site:


Content.Outlook/JB3TX88T/www.mtsint.com ].

Certain matters discussed in this news release are forward-looking statements that
involve a number of risks and uncertainties including, but not limited to, risks in
product development plans and schedules, rapid technological change, changes and delays in
product approval and introduction, customer acceptance of new products, the impact of
competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary
rights of the Company and its competitors, risk of operations in Israel, government
regulations, dependence on third parties to manufacture products, general economic
conditions and other risk factors detailed in the Company’s filings with the United States
Securities and Exchange Commission.

        Company Contact:

        Alon Mualem
        Tel: +972-9-7777-540
        Email: Alon.Mualem@mtsint.com

SOURCE MTS-MER Telemanagement Solutions Ltd

Source: PR Newswire