Morrisville, N.C. (Tuesday, September 12, 2006): Tekelec (NASDAQ: TKLC), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, today announced that the Tekelec 7000 Class 5 Packet Switch enables advanced voice over Internet protocol (VoIP)-based “triple-play” services for Dalton Utilities’ award-winning fiber-to-the-premise (FTTP) municipal network in Dalton, Ga.

The municipal utility company recently received the Digital City Smart Community of the Year Award from Last Mile magazine for its innovative and cost-effective bundled VoIP, data, video and utility services. The Tekelec 7000 Class 5 softswitch powers Dalton Utilities’ Optilink next-generation voice, video and data services.

“The Tekelec 7000 has been a key part of our success by delivering a reliable, flexible and proven solution to deliver cost-effective voice, video and data services to our community,” said Ray Buzzard, vice president of information technology, Dalton Utilities. “We have secured a new source of revenues to supplement our utility services, and we are also delivering value to local residents and businesses by providing more choices in telecommunications services.”

The Tekelec 7000 is uniquely flexible to enable all types of small to medium-sized operators – from municipalities such as Dalton Utilities to independent operating carriers (IOCs), competitive local exchange carriers (CLECs) and regional providers—to satisfy the demand for next-generation services, migrate to VoIP and generate new revenues, while lowering operating costs by reducing space, cooling and power expenditures.

Jay Whitehurst, president and general manager, Tekelec Switching Solutions Group, added, “We congratulate Dalton Utilities on its award for providing innovative services to its community, and we are proud that Tekelec has played a role in helping Dalton to deploy new bundled services that meet customer needs and drive revenues.”

The Tekelec 7000 is part of Tekelec’s “IMS-Ready” portfolio of solutions for next-generation networks, providing a mission-specific softswitch that delivers enhanced VoIP services and fixed mobile convergence (FMC) for smaller wireline and cable networks. Tekelec’s Class 5 switch fully integrates IP and time division multiplexing (TDM) interfaces, enabling simple VoIP deployment for carriers and municipalities while reducing operational costs.

“The Tekelec 7000 is creating new opportunities for operators to deploy VoIP services efficiently while greatly enhancing service margins,” said Eric Pratt, general manager of the Tekelec 7000 in the Tekelec Switching Solutions Group. “Our leadership continues to grow. Revenues from the solution increased nearly 200 percent from 2004 to 2005. According to a recent Dell'Oro Group IP Telephony report, since 2004, Tekelec has been the market share leader in hybrid media gateway softswitch sales.”

About Dalton Utilities
The vitality of Dalton, Ga., is a testament to community innovators past and present, who transformed a small Georgia town into the Carpet Capital of the World. At Dalton Utilities, innovators have continually met the needs of a burgeoning community. Providing safe, reliable and affordable utility services has been a cornerstone of Dalton Utilities' reputation since 1889.

About Tekelec
Tekelec is a high-performance network applications company that is accelerating the transition to IP Multimedia Subsystem (IMS) networks for service providers around the globe. With its experience at the intersection of network applications and session control, Tekelec creates highly efficient platforms for managing media and delivering network solutions. Corporate headquarters are located near Research Triangle Park in Morrisville, N.C., U.S.A., with research and development facilities and sales offices throughout the world.

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