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NICE Systems, a leading global provider of digital recording
and quality management solutions, today reported that 1998
revenues increased 31 percent to $91 million, compared with
$69.3 million in 1997. Net income for the year, excluding
one-time charges, reached $13.5 million, or $1.12 per share
(diluted), compared with net income of $12.5 million,
excluding one-time charges, or $1.36 per share (diluted) for
the previous year.

For the fourth quarter, revenues increased 6 percent to
$23.4 million, compared with $22.2 million for the same
quarter of 1997. Net income for the quarter reached $2.1
million or $0.19 per share compared with net income of $4.6
million or $0.39 per share (diluted) for the fourth quarter
of 1997.

Commenting on the fourth quarter, NICE's Chairman and Chief
Executive Officer, Benny Levin, said the results were
consistent with management's expectations, representing a
quick return to growth after the lower than expected
revenues in the third quarter. Computer Telephony
Integration (CTI) sales for the quarter reached $22.1
million, up 22 percent and 14 percent from the third quarter
of 1998 and fourth quarter of 1997 respectively.

"We are off to a good start in 1999. We have recently won
several multi-site contracts from global call centre
customers for our high-end NiceUniverse quality management
solution and released the new product version. Our strategic
partnerships have been strengthened with increased orders
from Lucent and Siemens, a new global distribution agreement
with Alcatel and product certification from Ericsson.

"In addition", Mr Levin continued, "we successfully launched
our new total digital video recording system, NiceVision, to
the CCTV, closed circuit television, security market. One of
our goals for the second half of 1999 is to penetrate the
digital video security market, and work our way towards
market leadership."

The 1998 gross profit rose 34 percent to $52.2 million
compared with $38.9 million for 1997. Operating income,
excluding one-time charges recorded during 1998 and 1997,
was $8.1 million (8.9 percent of revenues) compared with
$9.6 million (13.9 percent of revenues) in 1997. NICE's
gross profit margin for the fourth quarter was 57.5 percent
compared with 56.8 percent for the same quarter last year.
Operating income as a percentage of revenues reduced to 3.2
percent for the fourth quarter compared with 14.4 percent
for the fourth quarter of 1997 and 0.6 percent for the third
quarter of 1998.Mr. Levin added that NICE remains
pre-eminent in the financial and air traffic control markets
last year and plans to maintain its market leadership in
1999. In the fourth quarter of 1998, NICE received large
orders from global financial customers. In December the
Company received the Chairman's Citation of Merit Award for
1998 from the Air Traffic Control Association. Over the past
five years NiceLog has been selected by the air traffic
control authorities of over 15 countries, including the FAA
in the US.

Mr. Levin characterised 1998 as a year highlighted by the
introduction of new quality management and digital video
security products, the creation of the new professional
services division, and the strengthening of strategic
partnerships with global companies such as Lucent.

About NICE Systems

NICE Systems (NASDAQ: NICEY) is a leading global provider of
integrated digital recording and quality management
solutions. NICE's innovative solutions help customers
improve their business by effectively recording, storing,
evaluating and managing voice communications, call data,
desktop screens and video. NICE serves the business needs of
multiple markets, primarily financial institutions, call
centres, air traffic control (ATC) sites, public safety
centres, and closed circuit television (CCTV) security
installations. NICE also develops and provides voice
recording and communications intelligence (COMINT) systems
for government agencies.

NICE works closely with the leading telecommunications
providers to deliver solutions that seamlessly integrate
with the working environment. The company sells indirectly
to customers through its global distribution partners
including leading telecommunication providers such as Lucent
Technologies, Siemens, Alcatel, IPC Information Systems and
ETRALI, and a growing distributor network around the world.
NICE offers its customers a broad range of professional
services that include system integration, consulting,
installation, ongoing training and implementation support.
NICE's corporate headquarters are based in Israel with
subsidiary companies and local offices in the United States,
Canada, Germany, United Kingdom and France.

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