03.10.2005 20:05:00

Tekelec Completes Acquisition of Santera

Tekelec (NASDAQ:TKLC), a leading developer oftelecommunications products for next-generation fixed, mobile andpacket networks, today announced it has completed its acquisition ofthe minority interest in Santera for $75.6 million, cash. Tekelec'sIncome Statement will reflect 100 percent ownership of Santerabeginning in the fourth quarter of 2005.

"The purchase represents a significant milestone in the continuedgrowth of our next-generation switching portfolio," said Fred Lax,Tekelec's president and CEO. "The Santera media gateway and softswitchhave been the cornerstone of next-gen Class 4, Class 5, wireless, andwireline solutions Tekelec is providing to tier-one operators aroundthe globe. These solutions, bundled with our signaling and businessintelligence offerings, competitively position Tekelec as the idealchoice to help operators deliver advanced, revenue-building servicestoday and to guide their transition to tomorrow's networktechnologies."

Tekelec continues to demonstrate its leadership in thenext-generation switching market. Dittberner, an independent marketresearch firm, has named Tekelec the global market-share leader inmedia gateway shipments for three of the last four consecutivequarters. In the second quarter of 2005, Tekelec placed first in theworldwide media gateway market with the largest market share growth(more than 46 percent).

Research firm Dell'Oro estimated that Tekelec had the lead marketshare in hybrid media gateway shipments for the first quarter of 2005.In its report, "World Next-Generation Carrier Infrastructures MarketUpdate, July 2005," Frost & Sullivan ranked Tekelec second with a 15percent global market share for media gateway ports shipped since2004.

About Tekelec

Tekelec is a leading developer of now and next-generationsignaling and switching telecommunications solutions, businessintelligence tools and value-added applications. Tekelec's innovativesolutions are widely deployed in traditional and next-generationwireline and wireless networks and contact centers worldwide.Corporate headquarters are located in Morrisville, N.C., with researchand development facilities and sales offices throughout the world. Formore information, please visit www.tekelec.com.

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