Re Contract

Intec Telecom Systems PLC
20 November 2002


                      Intec Telecom Systems PLC ("Intec")

Intec Telecom Systems acquires Ericsson's 'Settler' interconnect billing product
unit


London, 20 November 2002: The Board of Intec Telecom Systems PLC (ITL.L) is
pleased to announce that it has signed an agreement with Ericsson AB of Sweden
to acquire Ericsson's 'Settler' interconnect billing product unit, including the
Settler development team and worldwide rights to develop and market the Settler
product range. The agreement includes further cooperation between the two
companies where Ericsson will continue to offer solutions based on Settler as
well as Intec's InterconnecT product suite.

The total consideration, to be settled in cash, amounts to US$5.1 million (£3.3
million). The acquisition will be revenue and earnings enhancing, generating new
license revenues, related services work and recurring revenues for support  &
maintenance.

Interconnect systems are used by telecoms carriers and service providers to
calculate and bill the charges levied for carrying each other's telecoms
traffic. These charges generally represent the largest single transactions that
a telecom operator undertakes on a regular basis.

A key benefit of the agreement are the synergies that will be achieved. Ericsson
has a direct presence in some countries where Intec has none, enabling a greater
reach. In other areas, where the two companies have previously competed
fiercely, efforts can be re-directed to other productive opportunities.

"Ericsson has developed a strong, worldwide customer base for Settler," said
Intec's Executive Chairman, Mike Frayne. "By acquiring this product unit we not
only bring in a useful additional revenue stream and wider sales channels, but
also some interesting technical capabilities in areas such as Least Cost
Routing."

The agreement also enables Ericsson as well as other successful Settler partners
to be able to offer their telecom customers Intec billing technology from either
the InterconnecT or the Settler range.

"With a portfolio of own and third party products, Ericsson will continue to act
as a major systems integrator in the area of charging and business support
solutions," said Mikael Backstrom, head of Systems Integration at Ericsson
Global Services. "Divesting the Ericsson product for interconnect settlements to
Intec will ensure continued access to excellent products from a leading software
vendor and strengthen Ericsson's offering in this area."



For more information:

Kevin Adams, Chief Executive Officer
Mike Frayne, Executive Chairman
[phone]
Andrew Rodaway, [phone]
[e-mail]

Fergus Wylie/Sarah Brydon, Cubitt Consulting
[phone]
[e-mail]



Intec Telecom Systems PLC

Intec Telecom Systems is an award-winning worldwide Operations Support Systems
("OSS") vendor for fixed, mobile and IP/next-generation networks, with more than
250 customers for its products worldwide.  Founded in 1997, Intec was listed on
the London Stock Exchange (Code: ITL.L) in June 2000. Intec is the market leader
in intercarrier billing systems and one of the largest suppliers of convergent
mediation software. The company is currently listed in Deloitte Touche
Tohmatsu's top 500 fastest growing companies in Europe, and received the
prestigious Queen's Award for Enterprise in April 2002 for its success in
growing international sales by almost 400% in 3 years. Intec's portfolio
includes:

     • Inter-mediatE(TM) - convergent mediation solution
     • InterconnecT(TM) - intercarrier billing including US CABS and ITU
     • Inter-activatE(TM) - flow-through provisioning and activation

Intec's customer base includes, among others, AT&T, BellSouth, BellSouth Peru,
Brazil Telecom, Cable & Wireless, Cesky Telecom (Czech Republic), COLT
Telecommunications, EBT (Taiwan), France Telecom, Hutchison 3G, ITXC, Maroc
Telecom, Maxis (Malaysia), Singtel Optus (Australia), Orange, Telecom Argentina,
Telecom Egypt, Telecom Italia, TPSA (Poland), Swisscom, T-Mobile International,
Telia (Sweden), Telkom South Africa, Telstra, US Cellular, Westel (Hungary),
Vodafone and Verizon. For more information on Intec Telecom Systems, visit the
website at http://www.intec-telecom-systems.com/.


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