These presentation materials describe Tekelec's present plans to develop and make available to its customers certain products, features and functionality

These presentation materials describe Tekelec's present plans to develop and make available to its customers certain products, features and functionality. Tekelec is only obligated to provide those deliverables specifically included in a written agreement signed by Tekelec and customer.

GlobalPressIT Summit

Mark F. WhittierVice President, Corporate Marketing

Accelerating Convergence 2006

Tekelec Confidential / For Discussion Purposes Only / Non-Binding

About Tekelec

• Industry leader in next-generation signaling, switching, and value-added applications

• Leading the transition to IP Multimedia Subsystems (IMS) architecture

• Proven track record with over 25 years in the industry

• Financially solid -- strong growth in all markets

• Corporate headquarters near Research Triangle Park in Morrisville, North Carolina, with R&D facilities, customer support, and sales offices worldwide

• World-wide market leadership…

Tekelec is a high-performance network applications company focused on

accelerating the transition to IMS networks.



Worldwide Market Leadership

• Tekelec is the number one leading global provider of signaling equipment in 2005. According to Venture Development Corp. (VDC), Tekelec has approximately 38% global signaling market share, including 61% market share in North and South America1.

• Tekelec is the number one provider of signaling equipment in North and South America for 20051.

• 100% market share of stand-alone STPs in India2.

• Tekelec is the leading provider of hybrid media gateway softswitches in 2005 with over 25% market share, when ranked by revenue3.

• Tekelec is leading global provider of media gateway – ATM channels in 20053.

• Tekelec is first in worldwide media gateway voice over packet (VoP) shipments, second in overall VoP ports shipped in Q3 20054.

• .

1. Venture Development Corp. Worldwide Core Infrastructure Report, June 2006. 2. Tekelec Research and Current Customer Base3 . Dell’Oro, IP Telephony Carrier Report, Q1’06 5/25/06. 4. Dittberner, Next Gen Voice Equipment Report, November 2005.



Heritage of Innovation and Leadership

1979 2006

’89 Market-Leading SS7

Test Equipment

’92 STP Introduced

’00 Advanced IN and Packet Applications

’99 First IP Signaling Network

’03-’04 NGN Switching Portfolio

Introduced

‘04 Communications

Software Portfolio

Introduced ’05 iptelorg acquired –

advancing IMS portfolio

For over 25 years, Tekelec has recognized and seized growth opportunities, and with its ability to adapt and evolve, the company has led key telecom market segments.

For over 25 years, Tekelec has recognized and seized growth opportunities, and with its ability to adapt and evolve, the company has led key telecom market segments.

Glo

bal G

row

th

Portfolio Growth

India – ‘04

Mexico – ‘03

Singapore – ‘03

Brazil – ‘02

England – ‘98

Thailand – ‘05

Russia – ‘06

Africa – ‘06

Middle East – ‘05

Argentina – ‘06



Recent Awards

• Tekelec Honored by AT&T as Outstanding Supplier Tekelec received one of 49 supplier recognition awards for its work in

helping the AT&T companies deliver outstanding service to its customers during the past year.

• Frost & Sullivan Award for Product Line Strategy for the World Application and Media Server Markets Tekelec has employed Best Practices that when combined allow it to

maintain its product line strategy leadership in the application and media server markets.



• Billions of calls a day; millions+ subscribers - 1,000 systems - 300 different networks - 30 different countries

• Over 1 billion mobile calls through our NGN MG T8000• VoIP Applications Server reaches 100 customers, 150 networks, 500K lines

• Over 225 switching customers worldwide

Diverse Global Customer Base



• Revenue 2005 – Record $536.9M – up 46% Year-over-Year (YoY) from $368.9M in 2004

• Orders 2005 – Record $629.3M – up 22% YoY

• Backlog 2005 – $573.3M – up 19% YoY

• Revenue (YTD) - $399.2M – up 15% YoY

• Over 40% of revenue in Q4 ’05 came from international sales

• Significant revenue growth YoY in all of our regional markets

• 23% of revenue devoted to R&D investment

Solid Financial Performance (Q3-06)

Twenty-five years of financial stability and growth even during the industry’s most challenging years.Twenty-five years of financial stability and growth even during the industry’s most challenging years.

Tekelec Confidential

Tekelec Confidential / For Discussion Purposes Only /

Non-Binding

2006 |

Recent Press Announcements

• Tekelec Announces TekCore IMS Core PlatformCSCF capabilities evolve EAGLE 5 ISS for delivery of IMS services today

• Tekelec Announces TekMedia ‘IMS-Ready’ SMS SolutionGreater network control and efficiency, network security, real-time data management, pre-paid billing, message storage

• Tekelec, TechnoServ A/S Enable Real-Time Information Improved Service for 3.2M SMARTS Customers in Russia

• Tekelec Honored by AT&T as Outstanding Supplier• Tekelec Joins Global Interoperability Trial to Drive the Adoption

of ‘Plug & Play’ in the Telecom IndustryTekelec Joins Global Interoperability Trial to Drive the Adoption of ‘Plug & Play’

in the Telecom Industry

A Tekelec 8000 Converged Multimedia Gateway will be controlled by a third-party mobile switching center (MSC) server/wireless softswitch using the 3GPP Open Mc standard interface.

Tekelec Confidential

Tekelec Confidential / For Discussion Purposes Only /

Non-Binding

2006 |

Tekelec’s Focus – the Transition to IMSA

cces

sC

ontr

olA

pplic

atio

ns

• Providing integrated performance and service-management functionality

• Developing value-added fixed, mobile, and IP services

• Leveraging expertise in signaling – the core of the network – to transform the delivery of services

• Providing the core CSCF to unleash the power of next-generation applications today…while building tomorrow’s foundation

• Enabling operators to offer new revenue-generating services, both fixed and mobile, with gateways and mobility services

• Leading the industry with advanced VoIP delivery for business and residential users

Tekelec provides high performance network applications – accelerating a seamless transition to the converged network.



Tekelec’s Solution Families

Flexible routing solutions integrated on EAGLE® 5 ISS for mobile

network management -virtual HLR manager (G-Flex®) & Equipment

Identity Register (EIR)

Signaling & Session Control

Number Portability Mobility Management

Unsurpassed signaling expertise offering SS7, SS7 over IP & SIP solutions: operators save costs,

achieve efficiencies, easily roll out new services and transition to next-gen

(IMS) networks

Industry-leading number portability solution: porting for GSM networks,

CDMA networks, fixed networks, and for intra-carrier (TDMA/CDMA-to-GSM)

number retention

MessagingSwitching &

Media GatewaysConvergence

Solutions

Next-gen messaging solutions — store-and-forward SMS to advanced multimedia; reduces costs; simplifies

OA&M; based on open 3GPP standards using SIP core.

An array of Class 4/5 switches, gateways and application servers supporting IP,

ATM and TDM switching, as well as 2G-3G-FMC integration with an IMS-ready

architecture

IMS solutions transform today’s networks; guide transition to create access-independent networks that

open up lucrative new markets

Performance Management (IAS)

Revenue GeneratingApplications (SCS)

Hosted VoIP

Integrated applications ensure in-depth understanding of networks; enable

wireline & wireless operators to make sound business investment & cost-

reduction decisions

Versatile IN applications; enable creation & customization of services rapidly & cost-

effectively, improving customer satisfaction, reducing churn & generating new revenue

Leading hosted IP telephony applications that enable service providers to reliably and cost-

effectively deliver VoIP solutions



Tekelec’s Focus on IMS Transition

• Voice services to seamlessly roam from mobile to fixed networks = “FMC”

• Messaging services for 2.0/2.5/3G networks

• Capacity relief for core SS7 network

• network optimization by utilizing broadband data channels vs. narrowband voice channels

• Interwork SMS and IM environments

• Add value to presence with TDM call status

• Forward compatible call agents, media gateways, and media gateway controllers – No stranded investment

TDMServices

IMSServices

IMSTDM

Transitional NetworkElements

Solutions for Revenue generation today - maximize return from TDM services and IMS investment

Future Proof- Create the IMS foundation today and operators to optimize network investment



“CIO’s Dilemma”

• Decline in use of desk Stations (PBX, Key Systems, Centrex)

• Continued Opex, and Capex renewal • Upgrades to IP under consideration

• Increase in use of mobile devices for internal use

• Need for a converged service for Enterprise and Cellular Service to reduce overall service cost and provide improved business continuity

• Continuing Investment in WLAN - often is “network of choice” and wide coverage

• Increase in use of mobile devices for internal use

• Voice primarily but messaging/email increasing use

Single NumberSingle NumberSingle ServiceSingle Service

Enterprise & CellularEnterprise & Cellular



Drivers for Fixed Mobile Convergence

1. Integration of WiFi Assets with Macro Cellular to reduce cost of telecom

2. Elimination of Dormant PBXs & PRI Interconnect

3. Single Number & Single Device

Enterprise

1. Customer retention by providing mobility

2. Bundled services along with voice, data, and video/ entertainment

3. Combat VoIP Carriers

Fixed Networks Mobile Networks

Fixed/Mobile NetworksMVNO’s

1. Penetrate enterprise & become single provider for voice services

2. Combat VoIP carriers and stop reduction in ARPU

3. Reduce roaming charges4. Offload 2G radio in Dense

Areas

1. Service layer convergence (prepaid, VPN, free phone, IN/SCP, etc.)

2. Combat VoIP carriers

1. Reduce cost and offload from cellular to IP

2. Reduce roaming charges



Tekelec IMS & FMC Solutions



T-6000

Tekelec FMC Architecture

T-3000

SIP Front Legacy Front

Next Gen SCP

MSC

VLR SMS

Application Server

S-CSCF

IN S

CPs

MGW

MGCF

Sin

gle

Identi

ty

Pre

paid

T-3300

Wireless SIP Convergence

SIP

SIP

T-8000

SSP



Summary

• Enterprises are using mobile service as a primary voice service vehicle

• Cost overruns in enterprises for mobile services is forcing the major corporations to work with their mobile carriers to develop new solutions for cost reductions

• Opportunity for Network Operators (Mobile & MVNOs) to provide new enhanced hosted enterprise services to reduce the overall cost of running enterprise networks

• New revenue opportunities for the mobile and MVNOs

• Tekelec has market leading IMS-enabled solution for seamless mobility and in deployment with various carriers around the world



Tekelec Differentiators

Tekelec has unparalleled experience and expertise in: The media, control and application layers of the network

Core session control and subscriber management

Low latency, high transaction, mission critical network applications

High value revenue generating, real-time applications

High capacity and distributed media gateway & control capabilities

Integrated data acquisition and end-to-end business intelligence across legacy and IMS networks

Network migration of multiple technologies.

Tekelec solutions … Leverage existing investment in the network, enabling a graceful transition to the converged

network

Optimize the IMS core for high performance multimedia applications

Are truly next gen and not based on legacy technology

Are based on open network topology

Have highly integrated OAM

Tekelec’s experience, expertise and significant footprint in network applications,uniquely positions us to seamlessly transition carriers to the converged network

Documents

These presentation materials describe Tekelec's present plans to develop and make available to its customers certain products, features and functionality