NICE’s Growing Leadership Status Highlighted in Market Study of Worldwide Workforce Optimization Industry by Analyst Firm DMG Consulting

NICE ranks #1 with 37% worldwide market share in first half 2008 for Quality Management/Workforce Optimization, 39% for total voice recording (IP and TDM based) revenue; leads in additional key categories

Ra’anana, Israel - NICE Systems Ltd. (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract Insight from Interactions to drive performance, today announced that industry analyst firm DMG Consulting LLC reports that NICE has demonstrated growth in each and every category measured, achieving greatest growth in revenue and/or market share in significant key industry and technology categories among vendors surveyed in its “2008 Quality Management/Liability Recording Mid-Year Market Share Report”. The report provides revenue and growth comparisons between first-half 2008 and first-half 2007. The DMG report’s findings validate NICE’s dominant position and the market’s positive response to the strategy and vision of NICE SmartCenter in enabling a more effective and profitable contact center and enterprise.

With a 37% market share in first half 2008, up from 34%,NICE ranked ahead of all other vendors in the prominent Quality Management/Workforce Optimization (QM/WFO) category, which includes liability recording, quality management, speech analytics, workforce management, performance management, and in every environment – including contact centers, financial trading floors, back office, branches, public safety and other environments. In addition to holding the highest revenue position, NICE was also noted for the largest market share increase, at 3%, and for its 23% revenue increase in the first half of 2008 over the first half of 2007.

“The Workforce Optimization market is one of the fastest growing and most innovative sectors in the contact center marketplace. Even more impressive, it has continued its strong performance for four consecutive years,” says Donna Fluss, president, DMG Consulting. “NICE has consistently been a top performer and has strong momentum. Their ongoing success is reflected by their 23.3% increase in revenue from $242.1 million during the first half of 2007 to $298.6 million for the same period in 2008 (GAAP).”

Additional areas where NICE led and achieved highest market share growth included: Total Voice Recording with 40% market share up from 37% and Contact Center Voice Recording with a 37% market share, up from 34%

We are very happy about this continued recognition of NICE’s market leadership ,” said Tom Butta, Chief Marketing Officer, NICE. “ These findings by DMG Consulting further validate the value and real-world benefits provided by NICE SmartCenter for contact centers and enterprises seeking to ensure customer loyalty and cut operational costs, both of which are always on top of their agenda, and especially critical in today’s economic environment"

About NICE Systems
NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions solutions and value-added services, powered by the convergence of advanced analytics of unstructured multimedia content and transactional data – from telephony, web, email, radio, video, and other data sources. NICE’s solutions address the needs of the enterprise and security markets, enabling organizations to operate in an insightful and proactive manner, and take immediate action to improve business and operational performance and ensure safety and security. NICE has over 24,000 customers in more than 135 countries, including over 85 of the Fortune 100 companies. More information is available at http://www.nice.com .

Trademark Note: 360° View, Alpha, ACTIMIZE, Actimize logo, Customer Feedback, Dispatcher Assessment, Encorder, eNiceLink, Executive Connect, Executive Insight, FAST, FAST alpha Blue, FAST alpha Silver, FAST Video Security, Freedom, Freedom Connect, IEX, Interaction Capture Unit, Insight from Interactions, Investigator, Last Message Replay, Mirra, My Universe, NICE, NICE logo, NICE Analyzer, NiceCall, NiceCall Focus, NiceCLS, NICE Inform, NICE Learning, NiceLog, NICE Perform, NiceScreen, NICE SmartCenter, NICE Storage Center, NiceTrack, NiceUniverse, NiceUniverse Compact, NiceVision, NiceVision Alto, NiceVision Analytics, NiceVision ControlCenter, NiceVision Digital, NiceVision Harmony, NiceVision Mobile, NiceVision Net, NiceVision NVSAT, NiceVision Pro, Performix, Playback Organizer, Renaissance, Scenario Replay, ScreenSense, Tienna, TotalNet, TotalView, Universe, Wordnet are trademarks and/or registered trademarks of NICE Systems Ltd. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the Company’s products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, pressure on pricing resulting from competition, and inability to maintain certain marketing and distribution arrangements, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company’s reports filed from time to time with the Securities and Exchange Commission.