MORRISVILLE, N.C., February 18, 2004 – With short messaging services (SMS) continuing a phenomenal growth pattern in Europe, operators are searching for solutions to handle the increased traffic this communication medium produces. Tekelec (NASDAQ: TKLC), a leading developer of signalling, switching, and applications for now and next-generation networks, is responding to these challenges with the introduction of the Short Message Gateway (SMG).

Tekelec’s SMG allows operators to manage increased SMS traffic without adding additional short message centers (SMS-Cs) or expanding their network infrastructures. Its unique design combines SMS offloading and SMS router solutions in a single high-performance system.

“Short messaging is a major revenue source for mobile operators,” said Fred Lax, Tekelec president and CEO. “Our goal is to provide carriers with smart solutions that will allow them to capitalize on revenue opportunities while creating a more efficient network overall.”

The SMG efficiently handles increasing amounts of commercial SMS traffic. Unlike a traditional SMS-C, Tekelec’s new SMG offloads mobile-to-machine traffic so that it never reaches the message center. Operators are able to use the existing SMS-C to perform its intended function – managing mobile-terminated traffic. Fewer SMS-Cs in the network reduce capital expenditures, operational costs, and increase network reliability. The SMG also attempts first-time delivery of machine-to-mobile and mobile-to-mobile messages and only passes the message to an SMS-C if delivery is not achieved, which significantly reduces the number of mobile-terminating messages being stored and forwarded.

In addition to handling increased traffic, Tekelec’s SMG also serves as a flexible SMS routing system. With its powerful address analysis engine, destinations such as domestic mobile, international mobile, short code, and e-mail addresses can be managed easily. Tekelec designed the gateway to offer operators functions outside basic messaging services.

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