Enghouse Systems Limited

Enghouse Systems Limited

October 23, 2006 07:00 ET

Enghouse Announces Termination of Support Services Contract with IBM Japan

MARKHAM, ONTARIO--(CCNMatthews - Oct. 23, 2006) - Enghouse Systems Limited (TSX:ESL) today announced its maintenance and support services agreement with IBM Japan has not been extended past March 31, 2007.

The agreement called for an automatic one-year renewal or cancellation with specified notice prior to the end of the term. At this time IBM Japan has been unable to secure a commitment from their client past March 31, 2007, and has therefore cancelled the agreement.

About Enghouse

Enghouse is a leading global provider of enterprise software solutions serving a variety of distinct vertical markets. Its strategy is to build a larger and more diverse software company through strategic acquisitions and managed growth. Enghouse shares are listed on the Toronto Stock Exchange under the symbol "ESL". Further information about Enghouse may be obtained from the Company's web site at www.enghouse.com.

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