NEWS

Frankfurt, Germany, August 29, 2007

Reference Customer

Paltel selects LHS' billing and customer care system BSCS iX Release 2

Fully convergent system handles billing of all fixed-line telephony in Palestine

LHS, a leading provider of telecom billing and customer care systems across the wireless, wireline, and IP telecom markets worldwide, today announced that Paltel, the national communications provider in Palestine has chosen the LHS billing and customer care system BSCS iX Release 2 for the rating and billing of its fixed-line services. The system will replace a legacy system, allowing Paltel to offer its customers more competitive services.

As the national provider, Paltel handles all of Palestine’s fixed-line telephony services. LHS’ BSCS iX Release 2 will be used to support all of Paltel’s local and international telephone services, Internet access and data services.

“We chose the system because of its sound record on a global level as a proven, reliable and flexible system. It follows a clear roadmap to support potential future requirements, as well as easy future upgrades, which is very important to us,” said Mohannad Heajawi, General Manager of Paltel.

The system will be implemented in Palestine by Hulul Business Solutions, the system integrator and service operations provider for Paltel and one of LHS partners for system integration. LHS will provide full back-office support and training from its offices in Dubai and Kuala Lumpur.

“The telecommunications sector in Palestine operates in an environment that requires a great degree of flexibility and self-sufficiency from the communication service provider and the implementation partner,” said Hassan Kassem, CEO of Hulul. “We consider BSCS iX Release 2 to be the ideal product for this environment. The product and its functions are well documented, which facilitates the use and implementation,” he added.

Because of the excellent cooperation between the two corporations, LHS is planning to continue working with Hulul as a system integrator in other projects outside of Palestine.

The BSCS iX Release 2 solution is the result of many years of expertise and experience on an international level. “At LHS, we continuously watch the market very closely and subsequently enhance our products to not only provide the best possible solutions for customers today, but to also optimally meet future market requirements,” said Wolfgang Kroh, CEO of LHS.

BSCS iX Release 2 is a fully convergent platform on various levels such as the technology level including fixed and mobile convergence options; and the payment method level offering pre- and postpaid convergence. These capabilities will enable Paltel to launch its fixed-line services and the Internet services of Hadara at the same time during phase one of the project. It will further allow the Paltel-Group the migration of its wireless business in the future and enable them to expand its service portfolio and product bundles.

About LHS

LHS is a leading provider of telecom billing and customer care systems across the wireless, wireline, and IP telecom markets worldwide.

LHS Business Support Systems offer full convergence on various levels, supporting the complete range of business models both across the mix of fixed and mobile services, as well as prepaid and postpaid services.

LHS builds innovative systems that enable our customers to introduce new services fast, helping drive revenues up, while keeping operational costs to a minimum. LHS was awarded “Best Billing or Customer Care Solution” by the GSM Association in Cannes in 2005, won the IIR World Billing Awards for its "Overall Best Contribution to Billing" in London in 2005 and 2006 as well as the “Stratecast Global Investment of R&D Resources to Address Core Billing Needs Award“ by Frost & Sullivan in 2007.

LHS is an independent software vendor (ISV) with headquarters in Germany, and offices in Brazil, Czech Republic, France, Malaysia, Turkey, and United Arab Emirates. LHS is part of the LHS Group, and LHS Aktiengesellschaft as the Group’s Holding company is a public company listed on the Frankfurter Stock Exchange (LHS400).

For more information, please visit www.lhsgroup.com.

About Paltel

Established in 1995 as a public shareholding company, Palestine Telecommunications Company, PalTel, commenced its operations on the 1st of January 1997 as an operator and provider of all types of telecommunication services including fixed lines, cellular, internet and data communications services. PalTel has become one of the major foundations of the Palestinian economy, a pillar for its growth and progress, and a compass for investment. Being as such it is the major contributor and the largest employer in the Palestinian economy.

PalTel’s capital amounts to 131.625 million Jordanian Dinars (JOD), with about 9976 shareholders by the end of 2006. The list of shareholders includes a broad list of investors ranging from prominent individuals, to companies, institutions and the Palestinian Investment Funds.

By the end of the year 2006 with its distinctive achievements, PALTEL has accomplished a ten-year march that made the Palestinian communication sector one of the most up-to-date and developed companies in the region, that is determined to continue to accomplish more success which will inevitably benefit everyone specially the Palestinian society.

Paltel have been able since the last ten years to reflect its achievements and success as a model of determination and challenge, and was able to continue in unprecedented giving trip at all levels and to transcend beyond the difficulties to linking its subscribers in the whole world under the most difficult circumstances. Since PalTel was founded it continued to achieve qualitative accomplishments in various areas including the communications and information technology, where it introduced to the Palestinian community all means of communication services and Internet, causing a big leap in the telecommunications sector, and being able to provide services to all the Palestinian areas.

Paltel largely expanded its activities in order to satisfy the ambitious aspirations of its founders, investors and management by establishing Paltel Group in year 2005. The group includes Paltel, Cellular Telecommunications Company (Jawwal), Hadara for Technological Investment Company and Palmedia that specializes in media and advertising.

For more information, please visit www.Paltel.ps.

About Hulul Business Solutions

At Hulul, we strive to be the leading Business Solutions provider in the regional market. Hulul offers innovative solutions of Software Development, Professional, Managed and Technical Services for large and complex environments using the most advanced technologies from development to delivery. We translate these advanced technologies into added value for our customers through our ICT services and solutions.

Hulul’s fusion of highly skilled professionals promises to deliver the best-fit solutions for all environments. These professionals bring years of experience in the ICT field from software development, networking and implementations to hardware and technical support. We strive to be the one stop ICT solution provider and virtual IT department for all business.

LHS
Oliver Madsen
Investor Relations Officer
Herriotstrasse 1
60528 Frankfurt am Main
Germany
Phone: +49 (0)69-2383 3264
Fax: +49 (0)69-2383 5710
E-Mail: oliver.madsen@lhsgroup.com

Commercial Register: Amtsgericht Frankfurt/Main - Registration Number HRA 42727
Personally Liable Partner: LHS Management GmbH - Registration Number HRB 75504
Amtsgericht Frankfurt/Main
Managing Directors: Wolfgang Kroh, Axel Barta, Dr. Jens Troetscher

Fink & Fuchs Public Relations AG
Stefanie Wegner
Senior Consultant
Berliner Strasse 164
65205 Wiesbaden
Germany
Phone.: +49 (0)611-74 131-66
Fax: +49 (0)611-74 131-22
E-Mail: stefanie.wegner@ffpr.de
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