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ADC Agrees to Sell Customer Care and Billing Software Platforms; Advances ADC Strategy to Focus on Core Strengths in Global Network Infrastructure Products and Services

Posted on: Friday, 4 June 2004, 06:00 CDT

ADC (Nasdaq:ADCT, www.adc.com) announced today it has entered into an agreement to sell its customer care and billing software division to Intec Telecom Systems. Intec is an award-winning worldwide Operations Support Systems (OSS) vendor for fixed, mobile and next-generation networks with more than 600 customer installations worldwide.

The transaction between ADC and Intec is expected to close in approximately 90 days and is subject to approval by Intec's shareholders as well as customary closing conditions. After the transaction is completed, Intec will assume control of the customer care and billing software offerings including approximately 600 employees, current relationships with existing software customers and related facility space. The purchase price for the transaction is $74.5 million, subject to purchase price adjustments, and is payable in cash. Other terms of the transaction were not disclosed.

"This decision advances our strategy to focus ADC on our core strengths," said Robert E. Switz, president and CEO for ADC. "Our product and service offerings are designed for the infrastructure layer of the network, which is the fundamental element that wireline, wireless, cable, enterprise, and broadcast networks require to scale services and function with high efficiency."

ADC provides high-performing connectivity equipment, wireless coverage and capacity equipment, wireline access systems and integration services to deliver broadband services to homes and businesses.

The customer care and billing software platforms include Singl.eView(R), a complete revenue, transaction, billing and service management solution that resides at the core of the OSS and business support systems (BSS). The software enables service providers to adopt any business model and allows users to deliver voice and content services; manage relationships with partners, content providers and customers; and build brand loyalty globally with a stable, always on, any pay platform.

"We are pleased to acquire a software offering that is both robust from a technical standpoint and complements our existing offering," said Mike Frayne, chairman for Intec Telecom Systems. "New services such as 3G and broadband offerings are growing in popularity and most of these services demand new OSS technology. These platforms will help us meet the broad needs of service providers."

In ADC's fiscal first half ended April 30, 2004, Singl.eView sales were approximately $35 million with an operating loss of approximately $4 million, after direct expenses only. In ADC's fiscal year ended October 31, 2003, the Singl.eView product line generated sales of approximately $92 million and an operating loss of approximately $7 million, after direct expenses only.

About Intec Telecom Systems

Intec Telecom Systems (London Stock Exchange code: ITL.L) is a leading provider of Operational Support Systems (OSS) for telecoms companies, with more than 500 customer installations for its products worldwide. It is the leader, by market share, of packaged interconnect billing and settlement software, with more installations and more telecom operators, including many PTTs, using its solution than any competitor. Intec is also now a leader in "convergent mediation," with the December 2000 acquisition of Computer Generation, Inc., and a growing force in US CABS billing with the January 2001 acquisition of CHA Systems Inc. In June 2001, Intec acquired Dataphone Limited, a provider of several OSS solutions, including Fraud Management.

About ADC

ADC is a world leader in providing global network infrastructure products, services and software that enable the profitable delivery of high-speed Internet, data, video, and voice services over our customers' unique networks. ADC (Nasdaq:ADCT) has sales into more than 90 countries. Learn more about ADC Telecommunications, Inc. at www.adc.com.

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