Acquisition

Intec Telecom Systems PLC
18 July 2006


                                 US Acquisition

 Intec extends US business with acquisition of outsourced billing company, EUR
                                    Systems

London, 18 July 2006: Intec, a leading provider of software to the global
telecoms industry, is pleased to announce that it has agreed to acquire the
operating assets of outsourced telecoms billing specialist, EUR Systems ("EUR")
of Pennsylvania, USA, from current owners Saratoga Partners. The consideration,
which will be paid in cash, is approximately $13.5 million*, subject to a
working capital adjustment. The value of the gross assets being acquired is
approximately $6.6 million. The transaction is expected to close in
approximately 30 days. On closing, Intec will combine the operations of EUR into
its existing North American business, and expects to be able to make the
acquisition earnings enhancing in the financial year ending 30 September 2007.

EUR Systems is a privately held provider of billing services headquartered in
Mechanicsburg, PA. EUR offers a number of solutions and associated services for
both end-user and inter-carrier billing, primarily on an outsourced
(service-bureau) basis to the North American ILEC, CLEC and IXC market. In
addition, EUR acts as a Mobile Virtual Network Enabler, providing billing and
back-office services to the MVNO market through its MVNGO solution. EUR had
revenues of approximately $36.0 million in 2005, with EBITDA (earnings before
interest, tax, depreciation and amortisation) of $6.2 million and EBIT (earnings
before interest and tax) of $1.9 million.

The acquisition of EUR provides Intec with a centre of competence in outsourced
billing services which, when combined with its existing Carrier Access Billing
(CABS) and retail billing service bureaux, will make it one of the leading
players in this market. The acquisition expands the Intec portfolio through
addition of a broad range of business process outsourcing services and also
provides an opportunity for Intec to increase efficiency in its existing service
bureau operations through economies of scale. The EUR customer base includes
over 40 telecoms service providers in North America, most of whom are not
existing Intec customers, presenting an additional opportunity for cross-selling
of Intec products.

"Intec has built a successful and profitable business in billing services and
software for US carriers," said Intec CEO Kevin Adams. "Economies of scale are
important in this business, so consolidating a key competitor in the US market
is a good move for us. We have already identified a number of immediate cost
synergies, and we expect to be able to begin enhancing EUR's financial
performance from day one."

*Approximately £7.3m using an exchange rate of £1 = $1.84.


For further information, please contact:

Intec Telecom Systems PLC                  www.intecbilling.com
Kevin Adams, Chief Executive Officer       [phone]
Andrew Rodaway, Director of Marketing      [phone]
                                           [e-mail]
Smithfield Consultants
Sara Musgrave, Libby Young, Tania Wild     [phone]
                                           [e-mail]

Pictures are available for the media to view and download from
www.vismedia.co.uk


Information on EUR

Electronic and Unit Record Datacenter, Inc., t/a EUR Systems
(www.eursystems.com), is a privately held provider of billing and revenue
management solutions, predominantly on an outsourced basis, to incumbent and
emerging telecom providers in the US. It provides end user, inter-carrier, and
wholesale billing solutions enhanced with a wide variety of BPO services. The
company, which was founded in 1960, is headquartered in Mechanicsburg, PA and
employs approximately 270 people.


Terminology

Intec's CABS (Carrier Access Billing) system addresses needs specific to the US
local telecoms market. The 1996 Telecommunications Act created a large number of
smaller alternative telecoms carriers in the US market. These carriers are
regulated by complex regulations and have a particular set of requirements for
their billing systems. The three types of carriers in this market are: ILEC -
Independent Local Exchange Carrier; CLEC - Competitive Local Exchange Carrier;
IXC - Inter-Exchange Carrier.


About Intec

Intec supplies billing software solutions to over 60 per cent of the world's top
100 telecoms carriers and is one of the world's fastest growing major BSS/OSS
(business and operations support systems) vendors.  Intec's 350 customers
include BellSouth Telecommunications Inc., Cable & Wireless, The Carphone
Warehouse (UK), China Unicom, Deutsche Telekom, Eircom (Ireland), France
Telecom, Hutchison 3G, O2, Orange, T-Mobile, Telefonica, Vodafone, Virgin
Mobile, Vivo and Verizon. Intec works closely with its customers, many of whom
have been with Intec since its inception, to provide the highest standards of
performance, flexibility and robustness to help carriers service their customers
effectively and profitably.

Intec's comprehensive and expanding range of products, solutions and services
includes:

• Retail billing and customer management
• Multi-service mediation and activation
• Inter-carrier billing settlements including US CABS and ITU-based settlement
• End-to-end content partner management
• Optimised wholesale routing and trading
• Real-time pre/post-paid mediation and charging
• A fully-integrated solution for IPTV charging, billing and user interaction

Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has
over 1,600 staff and 31 offices in 25 countries.
For more information, visit the Intec website at www.intecbilling.com.



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