Revenue decreased 5.8% to $386.4 million.

GAAP net loss attributable to CTI increased 64.2% to $39.7 million.

GAAP basic and diluted loss per share attributable to CTI’s shareholders increased from $0.12 to $0.19.

Non-GAAP net income attributable to CTI¹ increased 61.8% to $22.5 million.

Basic and diluted non-GAAP earnings per share attributable to CTI’s shareholders increased from $0.07 to $0.11.

Total revenue

GAAP income (loss) from operations

GAAP Operating margin

Segment revenue

Segment performance²

Segment performance margin

“Non-GAAP net income (loss) attributable to Comverse Technology, Inc.” and “Non-GAAP earnings (loss) per share attributable to Comverse Technology, Inc.’s shareholders” have not been prepared in accordance with GAAP. See “Presentation of Non-GAAP Financial Measures” and “Comverse Technology, Inc. and Subsidiaries Consolidated Reconciliation of GAAP to Non-GAAP Financial Measures” below.

For additional information concerning the computation of “segment performance” and the reasons for using this financial measure, see “Segment Performance” below. Segment performance margin reflects segment performance as a percentage of segment revenue.

the risk that the registration of CTI’s common stock will be revoked by a non-appealable order of the SEC, pursuant to Section 12(j) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), if the SEC fails to approve an Offer of Settlement made on July 26, 2011 (which reflects the terms of an agreement in principle entered into with the SEC’s Division of Enforcement on July 13, 2011) or, if approved, if the Division of Enforcement, in its sole discretion, determines that the company’s Quarterly Report for the quarter ended July 31, 2011 contains deficiencies that are not remedied by CTI within five business days from the date that the Division of Enforcement notifies CTI of such deficiencies. If a final order is issued by the SEC to revoke the registration of CTI’s

common stock, brokers, dealers and other market participants would be prohibited from buying, selling, making market in, publishing quotations of, or otherwise effecting transactions with respect to, such common stock and, as a result, public trading of CTI’s common stock would cease and investors would find it difficult to acquire or dispose of CTI’s common stock or obtain accurate price quotations for CTI’s common stock, which could result in a significant decline in the value of CTI’s common stock, and our business and liquidity may be adversely impacted, including, without limitation, an adverse impact on CTI’s ability to issue stock to raise equity capital, engage in business combinations, provide employee equity incentives or use CTI’s common stock to make a significant payment under a consolidated shareholder class action settlement agreement;

the risk of diminishment in our capital resources as a result of, among other things, future negative cash flows from operations at Comverse or the continued incurrence of significant expenses by CTI and Comverse in connection with the filing by CTI of periodic reports under the federal securities laws and the remediation of material weaknesses in internal control over financial reporting;

the continuation of material weaknesses or the discovery of additional material weaknesses in our internal control over financial reporting and any delay in the implementation of remedial measures;

the review of the periodic reports of CTI and Verint Systems by the staff of the SEC could result in amendments to our and Verint Systems’ financial information or other disclosures;

the risk that, if CTI ceases to maintain a majority ownership of Verint Systems’ outstanding equity securities and ceases to maintain control over Verint’s operations, it may be required to no longer consolidate Verint’s financial statements within its consolidated financial statements and, in such event, the presentation of CTI’s consolidated financial statements would be materially different from the presentation for the fiscal periods covered by this press release and for the fiscal years covered by the 2010 Form 10-K;

CTI may be unable to relist its common stock on the NASDAQ Stock Market or another national securities exchange, in which case, CTI’s common stock would continue to be traded over-the-counter on the “Pink Sheets” and shareholders may continue to experience limited liquidity due to, among other things, the absence of market makers;

we may need to recognize further impairment of intangible assets or financial assets, including our ARS portfolio, and goodwill;

the effects of any potential decline or weakness in the global economy (due to among other things, the downgrade of the U.S. credit rating and European sovereign debt crisis) on the telecommunications industry, which may result in reduced information technology spending and reduced demand for our subsidiaries’ products and services;

disruption in the credit and capital markets may limit our ability to access capital;

potential loss of business opportunities due to continued concern on the part of customers, partners, investors and employees about our financial condition and CTI’s previous extended delay in becoming current in its periodic reporting obligations under the federal securities laws;

rapidly changing technology in our subsidiaries’ industries and our subsidiaries’ ability to enhance existing products and develop and market new products;

our subsidiaries’ dependence on contracts for large systems and large installations for a significant portion of their sales and operating results including, among other things, the lengthy and complex bidding and selection process, the difficulty predicting their ability to obtain particular contracts and the timing and scope of these opportunities;

the difficulty in predicting operating results as a result of lengthy and variable sales cycles, focus on large customers and installations, short delivery windows required by customers, and the high percentage of orders typically generated late in the fiscal quarter;

the deferral or loss of one or more significant orders or customers or a delay in an expected implementation of such an order could materially and adversely affect our results of operations in any fiscal period, particularly if there are significant sales and marketing expenses associated with the deferred, lost or delayed sales;

the potential incurrence by our subsidiaries of significant costs to correct previously undetected operational problems in their complex products;

our subsidiaries’ dependence on a limited number of suppliers and manufacturers for certain components and third party software could cause a supply shortage and/or interruptions in product supply;

the risk that increased competition could force our subsidiaries to lower their prices or take other actions to differentiate their products and changes in the competitive environment in the telecommunications industry worldwide could seriously affect Comverse’s business;

the risk that increased costs or reduced demand for Comverse’s products resulting from compliance with evolving telecommunications regulations and the implementation of new standards may adversely affect our business and financial condition;

the risk that Comverse will be unable to comply with stringent standards imposed through Indian telecommunications service providers on equipment and software vendors that are not Indian owned or controlled by the Department of Telecommunications of the Government of India (the “DoT”), in which case Comverse’s ability to conduct business in India will be substantially limited and our revenue, profitability and cash flows would be materially adversely affected;

risks associated with significant indemnification obligations and various other obligations to which Comverse is, and will continue to be, subject as part of its compliance with DoT prescribed standards;

the risk that the failure or delay in achieving interoperability of Comverse’s products with its customers’ systems could impair its ability to sell its products;

the competitive bidding process used to generate sales requires our subsidiaries to expend significant resources with no guarantee of recoupment;

our subsidiaries’ inability to maintain relationships with value added resellers, systems integrators and other third parties that market and sell their products could adversely impact our financial condition and results of operations;

third parties’ infringement of our subsidiaries’ proprietary technology and the infringement by our subsidiaries of the intellectual property of third parties, including through the use of free or open source software;

risks of certain contractual obligations of our subsidiaries exposing them to uncapped liabilities;

the impact of mergers and acquisitions, including, but not limited to, difficulties relating to integration, the achievement of anticipated synergies and the implementation of required controls, procedures and policies at the acquired company;

risks associated with significant foreign operations and international sales, including the impact of geopolitical, economic and military conditions in foreign countries, conducting operations in countries with a history of corruption, entering into transactions with foreign governments and ensuring compliance with laws that prohibit improper payments;

adverse fluctuations of currency exchange rates;

risks relating to our significant operations in Israel, including economic, political and/or military conditions in Israel and the surrounding Middle East, and uncertainties relating to research and development grants, tax benefits and the ability of our Israeli subsidiaries to pay dividends;

potential decline in the price of CTI’s common stock in the event that holders of securities awarded under CTI’s equity incentive plans elect to sell a significant number of shares after CTI makes provision for the registration for issuance or sale of securities awarded under equity incentive plans;

the issuance of additional equity securities diluting CTI’s outstanding common stock, including the potential issuance of shares of CTI’s common stock in November 2011 pursuant to the settlement agreement of a consolidated shareholder class action;

risks that the credit ratings of CTI and its subsidiaries could be downgraded or placed on a credit watch based on, among other things, its financial results;

the ability of Verint to pay its indebtedness as it becomes due or refinance its indebtedness as well as comply with the financial and other restrictive covenants contained therein;

Verint’s dependence on government contracts and the possibility that U.S. or foreign governments could refuse to purchase Verint’s Communications Intelligence solutions or could deactivate Verint’s security clearances in their countries;

risks associated with Verint’s handling, or the perception of mishandling, of customers’ sensitive information;

Verint’s ability to receive or retain necessary export licenses or authorizations; and

other risks described in filings with the SEC.

ASSETS

Current assets:

Cash and cash equivalents

Restricted cash and bank time deposits

Auction rate securities

Accounts receivable, net of allowance of $9,175 and $13,237, respectively

Inventories, net

Deferred cost of revenue

Deferred income taxes

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Goodwill

Intangible assets, net

Deferred cost of revenue

Deferred income taxes

Other assets

Total assets

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and accrued expenses

Convertible debt obligations

Deferred revenue

Deferred income taxes

Bank loans

Litigation settlement

Income taxes payable

Other current liabilities

Total current liabilities

Bank loans

Deferred revenue

Deferred income taxes

Other long-term liabilities

Total liabilities

Commitments and contingencies

Equity:

Comverse Technology, Inc. shareholders’ equity:

Common stock, $0.10 par value - authorized, 600,000,000 shares; issued 205,636,586 and 204,937,882 shares, respectively; outstanding, 205,033,176 and 204,533,916 shares, respectively

Treasury stock, at cost, 603,410 and 403,966 shares, respectively

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive income

Total Comverse Technology, Inc. shareholders’ equity

Noncontrolling interest

Total equity

Total liabilities and equity

Revenue:

Product revenue

Service revenue

Total revenue

Costs and expenses:

Product costs

Service costs

Selling, general and administrative

Research and development, net

Other operating expenses:

Litigation settlements

Restructuring charges

Total costs and expenses

Income (loss) from operations

Interest income

Interest expense

Loss on extinguishment of debt

Other income, net

Income (loss) before income tax provision

Income tax provision

Net loss from continuing operations

Loss from discontinued operations, net of tax

Net loss

Less: Net (income) loss attributable to noncontrolling interest

Net loss attributable to Comverse Technology, Inc.

Weighted average common shares outstanding:

Basic and Diluted

Loss per share attributable to Comverse Technology, Inc.’s shareholders:

Basic and Diluted loss per share

Continuing operations

Discontinued operations

Basic and Diluted loss per share

Net loss attributable to Comverse Technology, Inc.

Net loss from continuing operations

Loss from discontinued operations, net of tax

Net loss attributable to Comverse Technology, Inc.

Cash flows from operating activities:

Net cash used in operating activities - continuing operations

Net cash used in operating activities - discontinued operations

Net cash used in operating activities

Cash flows from investing activities:

Proceeds from sales and maturities of investments

Acquisition of businesses, net of cash acquired

Purchase of property and equipment

Capitalization of software development costs

Net change in restricted cash and bank time deposits

Settlement of derivative financial instruments not designated as hedges

Other, net

Net cash (used in) provided by investing activities - continuing operations

Net cash provided by investing activities - discontinued operations

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Debt issuance costs and other debt-related costs

Proceeds from borrowings, net of original issuance discount

Repayment of bank loans, long-term debt and other financing obligations

Repurchase of common stock

Net proceeds from issuance of common stock by subsidiaries

Other, net

Net cash used in financing activities - continuing operations

Net cash provided by financing activities - discontinued operations

Net cash used in financing activities

Effects of exchange rates on cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents, beginning of period including cash of discontinued operations

Cash and cash equivalents, end of period including cash of discontinued operations

Less: Cash and cash equivalents of discontinued operations at end of period

Cash and cash equivalents, end of period

Non-cash investing and financing transactions:

Accrued but unpaid purchases of property and equipment

Inventory transfers to property and equipment

Three Months Ended July 31, 2011:

Revenue

Intercompany revenue

Total revenue

Total costs and expenses

Income (loss) from operations

Computation of segment performance:

Total revenue

Segment revenue adjustment

Segment revenue

Total costs and expenses

Segment expense adjustments:

Stock-based compensation expense

Amortization of acquisition-related intangibles

Compliance-related professional fees

Compliance-related compensation and other expenses

Impairment charges

Litigation settlements and related costs

Acquisition-related charges

Restructuring and integration charges

Other

Segment expense adjustments

Segment expenses

Segment performance

Interest expense

Depreciation and amortization

Other non-cash items ⁽¹⁾

Three Months Ended July 31, 2010:

Revenue

Intercompany revenue

Total revenue

Total costs and expenses

(Loss) income from operations

Computation of segment performance:

Total revenue

Segment revenue adjustment

Segment revenue

Total costs and expenses

Segment expense adjustments:

Stock-based compensation expense

Amortization of acquisition-related intangibles

Compliance-related professional fees

Compliance-related compensation and other expenses

Litigation settlements and related costs

Acquisition-related charges

Restructuring and integration charges

Other

Segment expense adjustments

Segment expenses

Segment performance

Interest expense

Depreciation and amortization

Other non-cash items ⁽¹⁾

Six Months Ended July 31, 2011:

Revenue