Amdocs to Acquire Longshine, A Leading Customer Care and Billing Provider in China

ST. LOUIS, June 20 /PRNewswire-FirstCall/ -- Amdocs , the leading provider of software and services to enable integrated customer management and the intentional customer experience, today announced an agreement to acquire Longshine Information Technology Company Ltd., a privately-held, leading vendor of customer care and billing software in China. Amdocs will acquire Longshine's outstanding shares for approximately US $30 million in cash with the possibility of additional cash consideration to be paid later based on the achievement of certain performance metrics. This acquisition expands Amdocs' global presence and marks its entry into mainland China.

"China represents a tremendous potential opportunity. Through 2008 industry analysts estimate the mobile subscriber base will grow at a compound annual growth rate (CAGR) of more than 10 percent and the fixed subscriber base by more than 8 percent CAGR," said Eli Gelman, executive vice president of Amdocs Management Limited. "Local presence is an absolute requirement for doing business in China, and our acquisition of Longshine gives us that. We respect and applaud the accomplishments of Longshine."

In addition, this acquisition will provide value to current Longshine customers. The combination of Longshine and Amdocs offers the ability to implement best practices and services from around the globe enabling Chinese service providers to more effectively deal with growing complexity and increasing competition.

"Bolstered by Amdocs' leading technology, global expertise, and financial strength, Longshine will be in a better position to support customers as they meet the challenging demands of the marketplace and seek to achieve integrated customer management," said Zhangjun XU, CEO Longshine. "This acquisition will enable us to accelerate our growth in China and will provide us with the most comprehensive set of products and services available."

Longshine has been providing billing, customer care, business intelligence and settlement systems, as well as associated integration and implementation services, since 1996, with a primary focus on the telecommunications sector in China, in addition to the utility industry. Today, it counts three out of China's four largest communications service providers among its customers. Headquartered in Beijing, Longshine is present in more than 15 provinces across China and serves more than 120 million subscribers. It has been successful in attracting skilled professionals experienced in the delivery of customer care and billing systems, and has close to 800 employees.

The former Longshine will operate as a business unit in China within Amdocs' Asia Pacific (APAC) division, and will be led by the founder and existing CEO, Mr. Zhangjun XU. Amdocs intends to continue to sell Longshine's software products and services in China. In parallel, Amdocs will start offering the Amdocs 6 portfolio of products and accompanying services to the Chinese market.

Completion of the acquisition is subject to certain customary closing conditions.

About Longshine

Longshine Information Technology is a leading provider of critical business support system solutions and services focusing on the telecom and power industry in China. The Company is headquartered in Beijing, and has set up branches in Hong Kong, Shenzhen, Hangzhou, Xiamen, Wuhan, Tianjin, Guangzhou, Shenyang and Chengdu. The Company is a new force in the increasingly fierce competitive IT market providing total solutions and services for the country's critical industries. Longshine Information Technology has been committed to providing the telecom industry with CC&B solutions and services, and providing the power industry with key business solutions and services.

About Amdocs

Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of an integrated customer management strategy by the world's leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle -- target, sell, deliver, bill and support -- Amdocs enables service companies to deliver an intentional customer experience, which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with the revenue of $1.774 billion in fiscal 2004, Amdocs employs over 9,500 IT professionals and serves customers in more than 40 countries around the world. For more information, visit Amdocs at http://www.amdocs.com/.

Amdocs Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the mobile, wireline and IP business segments, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F, filed on December 30, 2004 and our Forms 6-K furnished on February 14, 2005 and May 16, 2005.

Media Contacts: Amdocs Chris Loncto Access Communications for Amdocs Amdocs Tel: +1-917-522-3524 E-Mail: cloncto@accesspr.com