NEWS RELEASE

Second quarter 2011 results:

Total revenues were $181.3 million.

Non-GAAP operating income was $32.7 million, or 18.0% of total revenues and GAAP operating income was $22.4 million, or 12.3% of total revenues.

Non-GAAP earnings per diluted share (EPS) was $0.49, which includes a negative $0.03 per share impact as a result of a higher than expected income tax rate. GAAP EPS was $0.27.

Cash flows from operations for the quarter were $0.7 million, and were negatively impacted by unexpected changes in working capital, primarily as a result of the timing of payments from a significant client which were received after quarter end.

As anticipated, in June, holders of CSG’s 2004 convertible debt securities exercised their put option, and CSG paid $24.1 million for the par value of this debt. The remaining $1 million of this debt was called by CSG in June, retiring this issuance of bonds in their entirety in July.

Revenues

Non-GAAP Results:

Operating Income

Operating Income Margin

EPS

GAAP Results:

Operating Income

Operating Income Margin

EPS

the $4.8 million of amortization of acquired intangible assets related to the Intec acquisition, which negatively impacted GAAP EPS by $0.09 per diluted share; and

restructuring charges of $1.3 million, which negatively impacted GAAP EPS by $0.02 per diluted share.

the data center transition expenses of $10.6 million, which negatively impacted the second quarter of 2010 GAAP EPS by $0.20 per diluted share; and

favorable adjustments to our income tax reserves of approximately $4 million as a result of the completion of an IRS examination during the second quarter of 2010, which provided a positive GAAP EPS impact of $0.13 per diluted share.

Cash, cash equivalents, and short-term investments (1)

Net trade accounts receivable (2)

Total long-term debt (1):

Par value

Unamortized OID

Net debt carrying amount

Cash Flows from Operating Activities:

Operations (3)

Changes in operating assets and liabilities (4)

Net cash provided by (used in) operating activities

Cash Flows from Investing Activities:

Purchases of property and equipment

Revenues

Non-GAAP EPS

GAAP EPS from continuing operations

Adjusted EBITDA

CSG derives approximately forty percent of its revenues from its three largest clients;

Continued market acceptance of CSG’s products and services;

CSG’s ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner;

CSG’s ability to deliver its solutions in a timely fashion within budget, particularly large and complex software implementations;

CSG’s dependency on the global telecommunications industry, and in particular, the North American telecommunications industry;

CSG’s ability to meet its financial expectations as a result of increased dependency on software sales, which are subject to greater volatility;

Increasing competition in CSG’s market from companies of greater size and with broader presence in the communications sector;

CSG’s ability to successfully integrate and manage acquired businesses or assets to achieve expected strategic, operating and financial goals;

CSG’s continued ability to protect its intellectual property rights;

CSG’s ability to maintain a reliable, secure computing environment;

CSG’s conducting business in the international marketplace; and

Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.

Current assets:

Cash and cash equivalents

Short-term investments

Total cash, cash equivalents, and short-term investments

Trade accounts receivable-

Billed, net of allowance of $2,541 and $1,837

Unbilled and other

Deferred income taxes

Income taxes receivable

Other current assets

Total current assets

Property and equipment, net of depreciation of $104,856 and $94,236

Software, net of amortization of $51,106 and $45,579

Goodwill

Client contracts, net of amortization of $146,175 and $133,218

Deferred income taxes

Other assets

Total assets

Current liabilities:

Current maturities of long-term debt, net of unamortized original issue discount of zero and $621

Client deposits

Trade accounts payable

Accrued employee compensation

Income taxes payable

Deferred revenue

Other current liabilities

Total current liabilities

Non-current liabilities:

Long-term debt, net of unamortized original issue discount of $32,593 and $34,841

Deferred revenue

Income taxes payable

Deferred income taxes

Other non-current liabilities

Total non-current liabilities

Total liabilities

Stockholders’ equity:

Preferred stock, par value $.01 per share; 10,000,000 shares authorized; zero shares issued and outstanding

Common stock, par value $.01 per share; 100,000,000 shares authorized; 34,607,509 shares and 34,120,789 shares outstanding

Additional paid-in capital

Treasury stock, at cost, 29,956,808 shares

Accumulated other comprehensive income (loss):

Unrealized gain on short-term investments, net of tax

Unrecognized pension plan losses and prior service costs, net of tax

Unrealized loss on change in fair value of interest rate swap, net of tax

Cumulative translation adjustments

Accumulated earnings

Total stockholders’ equity

Total liabilities and stockholders’ equity

Revenues:

Processing and related services

Software, maintenance and services

Total revenues

Cost of revenues (exclusive of depreciation, shown separately below):

Processing and related services

Software, maintenance and services

Total cost of revenues

Other operating expenses:

Research and development

Selling, general and administrative

Depreciation

Restructuring charges

Total operating expenses

Operating income

Other income (expense):

Interest expense

Amortization of original issue discount

Gain (loss) on repurchase of convertible debt securities

Interest and investment income, net

Other, net

Total other

Income before income taxes

Income tax provision

Net income

Weighted-average shares outstanding – Basic:

Common stock

Participating restricted stock

Total

Weighted-average shares outstanding – Diluted:

Common stock

Participating restricted stock

Total

Earnings per common share:

Basic

Diluted

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash provided by (used in) operating activities -

Depreciation

Amortization

Amortization of original issue discount

Gain on short-term investments and other

Loss on repurchase of convertible debt securities

Deferred income taxes

Excess tax benefit of stock-based compensation awards

Stock-based employee compensation

Subtotal

Changes in operating assets and liabilities:

Trade accounts and other receivables, net

Other current and non-current assets

Income taxes payable/receivable

Trade accounts payable and accrued liabilities

Deferred revenue

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Purchases of property and equipment

Purchases of short-term investments

Proceeds from sale/maturity of short-term investments

Acquisition of businesses, net of cash acquired

Acquisition of and investments in client contracts

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from issuance of common stock

Repurchase of common stock

Payments on acquired equipment financing

Proceeds from long-term debt

Payments of deferred financing costs

Payments on long-term debt

Excess tax benefit of stock-based compensation awards

Net cash used in financing activities

Effect of exchange rate fluctuations on cash

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental disclosures of cash flow information:

Net cash paid during the period for -

Interest

Income taxes

Americas

Europe, Middle East and Africa

Asia Pacific

Total Revenues

Comcast

DISH

Time Warner

Charter

Cable and Satellite Customer Accounts

Certain internal financial planning, reporting, and analysis;

Forecasting and budgeting purposes;

Certain management compensation incentives; and

Communications with CSG’s Board of Directors, stockholders, financial analysts, and investors.

A more complete understanding of CSG’s underlying operational results, trends, and cash generating capabilities;

Consistency and comparability with CSG’s historical financial results; and

Comparability to similar companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles;

The way in which CSG calculates non-GAAP financial measures may differ from the way in which other companies calculate similar non-GAAP financial measures;

Non-GAAP financial measures do not include all items of income and expense that affect CSG’s operations and that are required by GAAP to be included in financial statements;

Certain adjustments to CSG’s non-GAAP financial measures result in the exclusion of items that are recurring and will be reflected in CSG’s financial statements in future periods; and

Certain charges excluded from CSG’s non-GAAP financial measures are cash expenses, and therefore do impact CSG’s cash position.

Non-GAAP Exclusions

Data center transition expenses (1)

Intec acquisition-related charges (1)

Restructuring charges

Stock-based compensation

Amortization of acquired intangible assets

Amortization of original issue discount (“OID”)

Gain/loss on repurchase of convertible debt securities

Unusual income tax matters

The data center transition expenses are not considered reflective of CSG’s recurring core business operating results. The exclusion of these items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.

The Intec acquisition-related charges relate to certain direct and incremental expenses related to the acquisition of Intec, and thus, are not considered reflective of CSG’s recurring core business operating results. These charges include expenses related to the following: (i) restructuring; (ii) investment banking, legal, accounting, and other professional services; and (iii) costs primarily related to the settlement of foreign currency hedging instruments associated with the funding of the Intec acquisition. The exclusion of these charges in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.

Restructuring charges are infrequent expenses that result from cost reduction initiatives and/or significant changes to CSG’s business, to include such things as involuntary employee terminations, and facility consolidations and abandonments. These charges are not considered reflective of CSG’s recurring core business operating results. The exclusion of these items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.

Stock-based compensation results from CSG’s issuance of its common stock to its employees under incentive compensation programs. The amount of this incentive compensation in any period is not generally linked to the level of performance by employees or CSG, but instead is more dependent on CSG’s stock price at the stock grant date, and the employee service period over which the equity awards vest. The exclusion of these expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to evaluate the non-cash expense related to

compensation included in CSG’s results of operations. In addition, the stock-based compensation expense is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash generating capabilities of CSG’s business.

Amortization of acquired intangible assets is the result of business acquisitions. A portion of the purchase price in an acquisition is allocated to the intangible assets (e.g., software, client relationships, etc.) acquired, which are then amortized to expense over their estimated useful lives. This annual amortization expense is generally unchanged from the initial estimates, regardless of performance of the acquired business in any one period. Also, the value assigned to acquired intangible assets in a business combination is based on various estimates and valuation techniques, and does not necessarily represent the costs CSG would incur to develop such capabilities internally. Additionally, amortization of acquired intangible assets can be inconsistent in amount and frequency, and can be significantly affected by the timing and size of an acquisition. The exclusion of these expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to evaluate the non-cash expense related to acquisitions included in CSG’s subsequent results of operations. In addition, the amortization of acquired intangible assets is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash generating capabilities of CSG’s business.

The convertible debt securities OID is the result of allocating a portion of the principal balance of the debt at issuance to the equity component of the instrument, as required under current accounting rules. This OID is then amortized to interest expense over the life of the respective convertible debt instrument. The interest expense related to the amortization of the OID is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash interest costs of CSG’s convertible debt securities for cash flow, liquidity, and debt service purposes.

Gains and losses related to the repurchase of CSG’s convertible debt securities are not considered reflective of CSG’s recurring core business operating results. The exclusion of these gains and losses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.

Unusual items within CSG’s quarterly and/or annual income tax expense can occur from such things as income tax accounting timing matters, income taxes related to unusual events, or as a result of different treatment of certain items for book accounting and income tax purposes. Consideration of such items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.

GAAP operating income

Data center transition expenses

Restructuring charges

Stock-based compensation

Amortization of acquired intangible assets

Non-GAAP operating income

GAAP operating income

Data center transition expenses

Restructuring charges

Stock-based compensation

Amortization of acquired intangible assets

Non-GAAP operating income

GAAP income before income taxes

One-time adjustments to income tax reserves (5)

Data center transition expenses

Restructuring charges

Stock-based compensation

Amortization of acquired intangible assets

Amortization of OID

Non-GAAP income before income taxes

GAAP income before income taxes

One-time adjustments to income tax reserves (5)

Data center transition expenses

Restructuring charges

Stock-based compensation

Amortization of acquired intangible assets