TTI Telecom Reports First Quarter 2008 Financial Results

ROSH
HA'AYIN, Israel, May 14, 2008 (PRIME NEWSWIRE) -- TTI Team Telecom
International Ltd. (Nasdaq:TTIL), ('the Company'), a global supplier of
Operations Support Systems (OSS) to communications service providers,
today announced results for the first quarter ended March 31, 2008.

Total revenues for the first quarter were $13.0 million, compared
with $10.7 million in the first quarter of 2007, and $12.2 million for
the fourth quarter of 2007. Total operating expenses were $6.8 million,
compared to $5.7 million in the first quarter of 2007 and $6.1 million
in the fourth quarter of 2007. The Company noted that the increase in
operating expenses was largely due to volatility in the currency
markets, particularly the weakness in the U.S. dollar relative to the
Israeli Shekel, which increased TTI's dollar denominated expenses.

Operating income for the quarter was $473,000 compared with an
operating loss of $417,000 for the first quarter last year and
operating income of $564,000 in the fourth quarter of 2007. Net income
was $873,000, or $0.05 per basic and diluted share, compared to a net
loss of $42,000, or $0.00 per basic and diluted share in the first
quarter of 2007 and net income of $1.1 million, or $0.06 per basic and
diluted share for the fourth quarter of 2007.

Commenting on the results, Meir Lipshes, Chairman and CEO of TTI
Telecom, stated, "We are pleased with our results for the first
quarter, as we achieved strong revenue growth, both sequentially and on
a year-over-year basis. Although operating costs were up due to the
weakening of the U.S. dollar, we were able to achieve our fourth
consecutive profitable quarter and are carefully watching our expenses
to best position TTI for continued profitability as we move forward."

"We had two important customer wins recently, which further expand
TTI's presence in the market and reinforce our belief in the value our
solutions bring to the market. In February we received an order from
Bell Mobility, one of the largest communications companies in Canada.
Bell adopted our Netrac service assurance solution, which includes both
our Fault Management (FAM) and Performance Management (PMM) modules."

Most recently, we were selected and certified by France Telecom
Group as the resource and service supervision GCC standard for their
Strategic NexT Program. With this certification, we have become the
recommended provider of resource and service supervision solutions for
new projects across the entire France Telecom group, a designation that
can create significant opportunities for TTI going forward. With over
170 million subscribers in 220 regions and countries, France Telecom is
an important customer and we look forward to continued close
collaboration with their team."

Mr. Meir Lipshes indicated that TTI Telecom is influenced by the
continuing weakness of the American dollar compared to the Israeli
shekel. Mr. Lipshes stated, "To minimize the effect, particularly on
the operating expenses, TTI is taking precautionary steps. In the last
months TTI has decreased operational expenses and is in a process of
off-shoring several of its activities to the Ukraine, utilizing the
assistance of the resources at Telesens, which TTI Telecom acquired in
the fourth quarter of 2007".

Conference Call Information:

A conference call has been scheduled for 9:00am ET today, May 14,
2008, during which management will discuss the Company's performance
for the quarter. To access the call, please dial +(888) 694-4739
(International dialers can call +(973) 582-2749 and giving the access
code: 46864747. The call can be accessed via live webcast through the
Investor Relations section of the TTI Telecom web site, www.tti-telecom.com and at www.kcsa.com.
A telephone replay of the call will also be available starting three
hours after the completion of the call until 11:59pm ET on, May 21,
2008. To access the replay, please dial +(800) 642-1687 (International
dialers can call +(706) 645-9291), participant code: 46864747. The
webcast of the conference call will be archived on the TTI Telecom and
KCSA web sites for 30 days.

About TTI Telecom:

TTI Team Telecom International Ltd. ("TTI Telecom") is a leading
provider of next generation Operations Support Systems (OSS) to
communications service providers worldwide. The company's Netrac
portfolio delivers an automated, proactive and customer-centric
approach to service assurance and network management.

Anchored by market-leading service assurance solutions - Fault
Management (FAM) and Performance Management (PMM) - that give customers
an end-to-end view of their network, TTI Telecom's Netrac enables
service providers to reduce operating costs, enhance profitability and
launch new, revenue-generating services more rapidly. Netrac is
compatible with multiple technologies and industry standards, and is
uniquely positioned to bridge legacy, next-generation, convergent, and
IMS Networks. TTI Telecom's customer base consists of tier-one and
tier-two service providers globally, including large incumbents in the
Americas, Europe and Asia-Pacific.

Forward looking statements in this release involve a number of risks
and uncertainties including, but not limited to, product demand,
pricing, market acceptance, changing economic conditions, risks in
product and technology development, the effect of the Company's
accounting policies as well as certain other risk factors which are
detailed in the Company's SEC filings.

TTI TEAM TELECOM INTERNATIONAL LTD.
STATEMENTS OF INCOME
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(in thousands of U.S. dollars)

Three Months Ended March 31
----------------------------
Unaudited
2007 2008
------------ ------------
Revenues
Product $ 5,781 $ 8,462
Services 4,926 4,587
------------ ------------

Total revenues 10,707 13,049
------------ ------------
Cost of revenues:
Product 3,007 3,821
Services 2,372 1,970
------------ ------------

Total cost of revenues 5,379 5,791
------------ ------------

Gross profit 5,328 7,258
------------ ------------

Operating expenses:
Research and development 2,199 3,002
Sales and marketing 1,735 2,420
General and administrative 1,811 1,363
------------ ------------

Total operating expenses 5,745 6,785
------------ ------------

Operating income (loss) (417) 473
Financial income, net 581 578
------------ ------------

Income before taxes on income 164 1,051
Taxes on income 206 178
------------ ------------
Net income (loss) $ (42) $ 873
============ ============
Net income attributed to
preferred shares -- $ 135
============ ============
Net income (loss) available
to ordinary shares $ (42) $ 738
============ ============
Basic and diluted income (loss)
per share attributable to
Ordinary shareholders -- $ 0.05
============ ============
Weighted average number of shares
used for computing net income
(loss) per share to ordinary
shareholders
Basic and diluted 16,000,431 16,003,158
============ ============

TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
---------------------------------------------------------------------
(in thousands of U.S dollars)

December 31, March 31,
2007 2008
------- -------
ASSETS

CURRENT ASSETS:
Cash and cash equivalents 33,408 29,753
Short term deposits 98 98
Trade receivables 8,185 10,931
Unbilled receivables 3,155 2,275
Related parties 409 443
Other accounts receivable
and prepaid expenses 3,192 2,559
------- -------
Total current assets 48,447 46,059
------- -------

LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,937 4,287
Advance on account of acquisition -- 1,000
------- -------
Total long-term investments 4,102 5,452
------- -------
PROPERTY AND EQUIPMENT
Cost 26,612 28,149
Less - accumulated depreciation 20,567 20,819
------- -------
Property and equipment, net 6,045 7,330
------- -------
Other Intangible Assets, Net -- 274
------- -------
Total Assets 58,594 59,115
======= =======

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables 2,364 3,019
Related parties 3,932 1,165
Deferred revenues 4,666 5,521
Other accounts payable and
accrued expenses 6,966 6,925
------- -------
Total current liabilities 17,928 16,630
------- -------
ACCRUED SEVERANCE PAY 5,651 6,288
------- -------
Long term liability 1,579 1,839
------- -------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,038 75,087
Accumulated deficit (44,197) (43,324)
------- -------
Total shareholders' equity 33,436 34,358
------- -------
Total liabilities and
shareholders' equity 58,594 59,115
======= =======