WAKEFIELD, MA, PALO ALTO, CA March 15, 2007 - Comverse, a subsidiary of Comverse Technology, Inc. and the world's leading supplier of software and systems enabling network-based multimedia enhanced communication and billing services, and Mobixell, a leading provider of innovative mobile multimedia solutions, today announced the deployment of mobile multimedia adaptation and optimization services for German Tier 1 mobile operator O2, part of the Spanish telecommunications group Telefónica S.A. (NYSE: TEF).

O2's implementation of Rich Media Service Center (RMSC^TM) offered by Mobixell provides for delivery of mobile multimedia messages and ensures that they are displayed optimally on the handsets of O2's subscribers throughout Germany. The service improves the quality and performance of transcoding for person-to-person (P2P) and application-to-person (A2P) MMS services for O2.

"We selected Comverse and Mobixell because their proven solution has an extensive track record in the mobile multimedia industry," said O2 Head of Messaging, Dr. Wolfgang Wallauer. "The teamwork between Mobixell and Comverse ensured that the deployment was completed rapidly and successfully. Our subscribers will now be able to enjoy the best user experience possible."

"We have worked with Mobixell extensively, deploying many joint solutions for Tier 1 and other operators in Europe, Asia Pacific, and the Americas," said Gadi Bahat, President of Comverse's EMEA Division. "The combination of Mobixell's best-of-breed solution and Comverse's expertise in MMS and mobile messaging enabled us to deliver this solution smoothly for O2."

"As one of the most successful global operators, O2 is an opinion leader with respect to innovative mobile multimedia services," said Amir Aharoni, Chief Executive Officer of Mobixell. "The Rich Media Service Center (RMSC^TM) is a reliable, cost-effective solution for ensuring delivery of multimedia content services that optimizes files to meet the requirements of every handset and network. This will help O2 to introduce new multimedia services rapidly and can contribute to an increase in multimedia content usage and customer satisfaction."

About O2

O2 (Germany) GmbH & Co. OHG, a subsidiary of Telefónica O2 Europe and part of the Spanish telecommunications group Telefónica S.A., offers its post-paid and
pre-paid subscribers almost blanket GSM coverage in Germany through its own mobile communications network and a roaming agreement with T-Mobile Deutschland. In addition, as an integrated communications provider, the company provides innovative mobile data services on the basis of GPRS and UMTS technology, as well as mobile phone services and DSL and land line telephony. Telefónica O2 Europe has more than 38 million mobile and land line subscribers in the United Kingdom, Ireland, Slovakia, the Czech Republic and Germany.