NICE Completes Acquisition of Dictaphone's Communications Recording Systems Business

RA'ANANA, Israel - NICE Systems completed the acquisition of Dictaphone's Communications Recording Systems (CRS™) business. The acquisition of the assets of Dictaphone's CRS business, originally announced on April 11, 2005, was an all-cash transaction for approximately $38.5 million.

NICE reiterates previous guidance for 2005, where the acquisition of Dictaphone's CRS business is expected to add $20 million to NICE's top-line and 10 cents to the bottom line, taking the company's revenues to $295 - $300 million. Pro-forma EPS excluding the acquisition-related amortization is expected to be approximately $1.50-1.60 per diluted share.

Given the early closing date versus expectations, revenue for the second quarter of 2005 is expected to be higher by $1.5-2 million; and as a result of earlier recognition of acquisition and integration related costs, a $1.5 million cost is excepted to affect the bottom line. Pro-forma guidance for the second quarter, which excludes the impact of Dictaphone, remains unchanged at revenues of $67-70 million and EPS of $0.32-$0.36