Trading Update

31 March 2010 Intec Telecom Systems PLC ("Intec", the "Company" or the "Group") Trading Update Intec (ITL.L),a global provider of business support systems solutions, provides an update on current trading for the six months ended 31 March 2010 and the outlook for the year. Whilst there has been no material change to the broader macro-economic conditions since the Interim Management Statement of 16 February 2010, conditions in Intec's addressable markets have become more difficult in two areas.  In particular, the Group's markets have been impacted by increased competition leading to pricing pressure and extended sales cycles as decision making is deferred; this has been especially the case in the emerging markets.  In addition to what has already been a difficult trading year, operators across the Europe, Middle East and Africa region are tightening their budgets, some as they approach their financial year ends.  As a result of both these factors, Intec has recently experienced further deferrals in the closure of a number of key licensing deals in the first half of 2010. Despite these adverse conditions, reported revenues across the Group's Asia Pacific and Americas regions continue to demonstrate resilience and are performing in line with expectations. Notwithstanding the slow-downs referred to above and competitive pressures across the business, the Group continues to maintain a consistent win rating for new contracts. In addition, Intec continues to identify growth opportunities across the emerging markets, including the Middle East, Africa, Central and Latin America and a number of territories across its Asia Pacific region, including India. As a direct result of delayed decisions, the Group's new orders for the financial year to date are approximately 5% down when compared to the same period last year; and whilst the sales order pipeline continues to provide significant levels of coverage, it is less well advanced, creating potential risk around the timing of the completion of contracts. Consequently, the Group expects its first-half revenues to be approximately 10% to 15% below market consensus and, should the current trends continue, it is possible that the full year revenues could be similarly impacted. The first half shortfall, which is substantially due to licence, will therefore have a direct impact on profits. The targeted reductions in the Group's G&A expenses are being achieved and, as discussed at the time of the preliminary results in November, the Group continues to invest in future revenue growth. This includes the development of partner relationships and the continued development of its product and delivery capability. The Group remains focused on sales and cost management in order to maximise the full year outcome. The Group expects to announce its results for the half year ending 31 March 2010 on 20 May 2010. Management will be hosting a conference call at 8.00 am BST today to discuss this morning's announcement. For dial in details please contactintec@fd.com <mailto:intec@fd.com>. -ends- Enquiries: Intec Telecom Systems PLC www.intecbilling.com Andrew Taylor, Chief Executive Officer +44 (0)1483 745 800 Robin Taylor, Finance Director FD Juliet Clarke/Haya Herbert-Burns +44 (0)20 7831 3113 About Intec Telecom Systems PLC Intec supplies solutions to over 60 of the world's top 100 telecoms carriers, and is one of the world's fastest growing suppliers of Business Support Systems (BSS) solutions. Intec's 400 plus customers include AT&T, Antel, 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 add real value and ROI to their business by providing the highest standards of performance, flexibility and robustness to help communications service providers service their customers effectively and profitably. * 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 * Pre-integrated solutions for wholesale, wireless and core IMS charging functions Founded in 1997, Intec is listed on the London Stock Exchange (ITL.L) and has over 1,600 staff and 31 offices in 24 countries. For more information, visit the Intec website atwww.intecbilling.com < http://www.intecbilling.com/>. [HUG#1399559]
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