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ECtel Completes All-Cash Merger Transaction with cVidya Networks

January 13, 2010

ROSH HA’AYIN, Israel, January 13 /PRNewswire-FirstCall/ — ECtel Ltd.
(NASDAQ: ECTX) (“ECtel” or the “Company”), a leading provider of Integrated
Revenue Management(TM) (IRM(R)) solutions for communications service
providers, announced today that it has completed the sale of the Company to
cVidya Networks Inc. (“cVidya”), a global leader in telecom revenue
management, risk management, and dealer management solutions, by way of a
merger pursuant to the merger agreement dated October 22, 2009, in a cash
transaction valued at $21 million (less transaction expenses of approximately
$434,000).

http://www.newscom.com/cgi-bin/prnh/20010807/FLTU015LOGO

The merger agreement was approved by holders of approximately 99.7% out
of over 70% of ECtel’s outstanding shares that were voted at an extraordinary
general meeting held on December 11, 2009.

As of today, each ordinary share of ECtel issued and outstanding has been
automatically converted into the right to receive US $1.26 in cash, without
interest and less any applicable withholding tax, and ECtel has become a
privately held company, indirectly wholly owned by cVidya.

Shareholders who are registered holders of ECtel shares will receive a
letter of transmittal with detailed instructions, along with a tax
declaration form, from the appointed paying agent, Bank of New York Mellon,
regarding the surrender of their shares for the merger consideration. For
shares held in street name by a broker, bank or other nominee, the broker,
bank or other nominee will handle the exchange of shares for the shareholders
and will provide them with any relevant instructions for effecting the
exchange.

About cVidya

cVidya Networks is a global leader in telecom Revenue Management, Risk
Management, and Dealer Management solutions. Based on highly-advanced revenue
assurance technologies, full compliance with industry standards, and market
proven methodologies, cVidya`s MoneyMap platform has already helped to reduce
costs and reclaim hundreds of millions of dollars in lost revenues for
leading fixed, mobile and triple-play communication service providers.
cVidya’s customers include British Telecom, Telefonica, Vodafone, Swisscom,
Telecom Italia, Cable & Wireless, and more. cVidya received the Best Revenue
Assurance and Management Project Award at the World BSS Awards 2008. For more
information, visit http://www.cvidya.com

Certain statements contained in this release contain forward-looking
information with respect to plans, projections or future performance and
products of the Company, the occurrence of which involves certain risks and
uncertainties. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give
no assurance that our expectations will be obtained or that any deviations
will not be material. Such statements involve risks and uncertainties that
may cause future results to differ from those anticipated. These risks
include, but are not limited to, the effects of general economic conditions,
the possible slow-down in expenditures by telecom operators, adverse effects
of market competition and the impact of competitive pricing and offerings,
,the reoccurrence of sales to existing customers, the ability to recognize
revenue in future periods as anticipated, the unpredictability of the telecom
market, product and market acceptance risks, the ability to complete
development and market introduction of new products, fluctuations in
quarterly and annual results of operations, dependence on several large
customers, commercialization and technological difficulties, risks related to
our operations in Israel and risks associated with operating businesses in
the international market. These and other risks are discussed at greater
length in the Company’s annual report on Form 20-F and other filings with the
Securities and Exchange Commission. ECtel disclaims any obligation to so
update these forward-looking statements and undertakes no obligation to
publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

    ECtel Contact:
    Michael Neumann
    Senior Vice President and CFO
    Tel: +972-3-9002115
    Email: mickeyne@ectel.com

    External IR Contacts:
    Ehud Helft\Kenny Green
    CCG Israel for ECtel
    Tel: +1-646-201-9246
    Email: info@gkir.com

SOURCE Ectel Ltd


Source: newswire



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