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Seven Iowa IOCs Select Tekelec Class 5 Packet Switch, VoIP Application Server


Morrisville, N.C. (Thursday, March 02, 2006): Tekelec (NASDAQ: TKLC), a leading developer of telecommunications products for next-generation fixed, mobile and packet networks, today announced seven independent operating companies (IOCs) in Iowa have selected the Tekelec 7000 Class 5 Packet Switch and Tekelec 6000 VoIP (voice over Internet protocol) Application Server to replace their legacy switches and deliver advanced session initiation protocol (SIP)-based services and applications. The combined contracts are worth several million dollars and involve 12 Tekelec 7000 and multiple Tekelec 6000 systems.

Six of the operators own the Northern Iowa Communications Partnership (NICP): Ayrshire Farmers Mutual Telephone Company, Northwest Telephone Cooperative Association, Palmer Mutual Telephone Company, River Valley Telecommunications Cooperative, Royal Telephone Company and Terril Telephone Cooperative. These companies have previously deployed Tekelec 7000 and Tekelec 6000 systems. The seventh operator, Farmers Mutual Telephone Company of Stanton, Iowa, is a new customer, purchasing both Tekelec 7000 and Tekelec 6000 systems for its network.

The integrated Tekelec 7000-Tekelec 6000 enhanced VoIP solution uniquely benefits IOCs with its support for delivering SIP-based services and applications to residential and business customers – whether they use GR-303, POTS or broadband IP connections. Furthermore, Tekelec’s solution is the only hosted IP telephony offering that supports the four key IP endpoint protocols – SIP, MGCP, SCCP, and MiNet.

“Tekelec’s solution integrates with our existing network equipment and enables us to flexibly deliver new revenue-generating services and applications without changing the business model that has served us well for the past 100 years,” said Doug Nelson, CEO of Royal Telephony Company and Terril Telephone Cooperative. “We have evaluated several options, and Tekelec is the only company that provides this flexibility.”

Kevin Cabbage, general manager of Farmers Mutual Telephone Company, added, “Tekelec has a strong reputation in Iowa, and its proven Tekelec 7000-Tekelec 6000 solution will allow us to deliver differentiated services and applications while also supporting our existing regulated revenue streams, building customer brand loyalty and reducing operational costs.”

Frank Plastina, Tekelec president and CEO, said, “Today’s announcement further demonstrates Tekelec’s position as a leader in next-generation switching and hosted VoIP application server solutions. Our field-proven VoIP solution portfolio enables IOCs to cap their legacy circuit switch investments and generate revenues with new applications. More importantly, they are able to flexibly deliver advanced SIP-based services and applications to their existing and new broadband subscribers. In the past year, we have nearly doubled our base of shipped Tekelec 7000 ports in North America, thanks to our customers’ support and recognition of the combined value of the Tekelec 7000 and Tekelec 6000 to their businesses.”

About Tekelec
Tekelec is a leading developer of now and next-generation signaling and switching telecommunications solutions, business intelligence tools and value-added applications. Tekelec’s innovative solutions are widely deployed in traditional and next-generation wireline and wireless networks and contact centers worldwide. Corporate headquarters are located in Morrisville, N.C., with research and development facilities and sales offices throughout the world.


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