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MTS Announces Sale of its Interest in cVidya Networks Inc. as Part of the Company's Decision to Sell Non-Core AssetsRA'ANANA, Israel, February 4 /PRNewswire-FirstCall/ -- MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of business support systems (BSS) for comprehensive telecommunication management and customer care & billing (CC&B) solutions, today announced that it has completed the sale of its ownership interest in cVidya Networks Inc. MTS is expected to receive total proceeds of approximately US$600,000 for the sale. The Company will record a capital gain of approximately $380,000 as a result of this transaction. This sale is part of the Company's plan to improve its liquidity by selling non-core assets in which significant synergies or added values no longer exist. This sale and the sale of the Company's 50% ownership interest in Jusan S.A., a Spanish affiliate, during the fourth quarter of 2007 have generated total proceeds of approximately $1,600,000. Mr. Eytan Bar, MTS's CEO, commented "The sale of our ownership interest in cVidya Networks Inc. is the second step of our restructuring plan and efforts to improve our Company's working capital. Together with the $750,000 investment of Mr. Lior Salansky, which is expected to close this week, the Company has strengthened its cash position and is now able to focus on its search for new opportunities and in expanding its core business." About MTS Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative solutions for comprehensive telecommunications expense management (TEM) used by enterprises, and for business support systems (BSS) used by information and telecommunication service providers. Since 1984, MTS Telecommunications' expense management solutions have been used by thousands of enterprises and organizations to ensure that their telecommunication services are acquired, provisioned, and invoiced correctly. In addition, the MTS's Application Suite has provided customers with a unified view of telecommunication usage, proactive budget control, personal call management, employee cost awareness and more. MTS's solutions for Information and Telecommunication Service Providers are used worldwide by wireless and wireline service providers for interconnect billing, partner revenue management and for charging and invoicing their customers. MTS has pre-configured solutions to support emerging carriers of focused solutions (e.g. IPTV, VoIP, MVNO) to rapidly install a full-featured and scaleable solution. MTS's unique technology reduces integration risks and lessens revenue leakage by using the very same system to manage retail and wholesale business as well as supporting multiple business units. Total cost of ownership (TCO) is reduced by providing web-based customer self-care and provisioning. Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States, Hong Kong, The Netherlands, and Brazil, as well as through OEM partnerships with Siemens, Phillips, NEC and other vendors. MTS shares are traded on the NASDAQ Capital Market (symbol MTSL). For more information please visit the MTS web site: http://www.mtsint.com/. Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulations, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. Contact: Alon Mualem CFO Tel: +972-9-762-1733 Email: [email protected] MTS-MER Telemanagement Solutions Ltd CONTACT: Contact: Alon Mualem, CFO, Tel: +972-9-762-1733 , Email:[email protected] |