SOURCE: Tekelec

February 16, 2011 09:00 ET

Tekelec Expands Board With Two New Directors, New Nominee

MORRISVILLE, NC--(Marketwire - February 16, 2011) - Tekelec (NASDAQ: TKLC), the broadband data management company, today announced that the Board of Directors has appointed Thomas J. Coleman and Anthony Colaluca, Jr. to the Board, expanding the Board to nine, and that Jean-Yves Courtois, along with Coleman and Colaluca, will be included as management nominees for election to the Board at the company's upcoming May 2011 annual meeting of shareholders. 

Coleman is a co-founder and co-president of Kensico Capital Management Corporation, which is the owner of approximately 10.2% of the Company's outstanding shares. Colaluca has over 20 years of operational and financial experience with multi-national technology companies and most recently served as Executive Vice President and Chief Financial Officer of Intergraph Corporation. Courtois, who holds a PhD in Physics, has substantial experience in the communications industry, including strategy and CEO roles in three successive companies, most recently with Orolia SA, a NYSE Alternext listed company.

"We welcome Tom and Anthony to the Board, anticipate Jean-Yves joining in May, and look forward to their contributions toward Tekelec's success in 2011 and beyond," said Krish Prabhu, Tekelec's interim president and chief executive officer and a member of the Board.

Tekelec also announced today that Mark Floyd, Chairman of Tekelec's Board of Directors, who assumed a CEO role with a separate company in 2009, will not be standing for re-election at the Company's upcoming annual meeting of shareholders.

"We wish to thank Mark for his leadership, his service and his many outstanding contributions to Tekelec over the last six years, and we wish him great success in his current and future endeavors," said Prabhu.

"I am proud of the substantial steps we have taken over the last six years to transform Tekelec into a broadband data management company. With these new additions to the Board and the search for a permanent CEO under way, Tekelec is well positioned for the future," said Floyd.

Forward-Looking Statements
Certain statements made in this press release are forward-looking, reflect the Company's current intent, belief or expectations and involve certain risks and uncertainties. The Company's actual future performance may differ materially from such expectations as a result of important risk factors, which include, in addition to those identified in the Company's 2009 Form 10-K, 2010 First, Second, and Third Quarter Forms 10-Q and its other filings with the Securities and Exchange Commission, the effects on our revenue performance of our year-over-year decline in orders in 2010 and the increasing portion of our orders that are for newer products with longer order-to-revenue conversion cycles; our increasing dependence on selling next generation products with which we have less experience forecasting and for which the markets are less mature and more subject to demand and technology changes; the difficulty we may have in transitioning from a hardware-centric to a software-centric business; the uncertainty associated with the resignation of our former CEO and the interim status of our current CEO; any adverse outcome from or effects of the securities litigations we currently have filed against us; the current or further detrimental changes in general economic, social, or political conditions in the countries in which we operate including the impact of credit availability and other economic factors on overall capital spending by our customers and resulting pressure on us to lower our prices; the rate and size of decline in demand for our older SS7-based products from which we still derive a substantial portion of our revenues; our ability to compete with other manufacturers that have lower cost bases than ours, are partially supported by foreign governments, and/or employ unfair trade practices; risks related to our international sales, markets and operations, including among others, import regulations, limited intellectual property protection, including protection of our software source code, increased costs and potential liabilities related to compliance with current and future security provisions in customer contracts and regulations, and security, access, and other regulatory requirements imposed by governments, including in particular the government of India; exposure to increased bad debt expense and product and service disputes as a result of general economic conditions; the timeliness and functional competitiveness of our product releases, the timing and size of any increase in demand for our performance management, SIP, Diameter, policy and subscriber database products; the risk of infringing on, and litigating with others regarding their, intellectual property rights; the timing of our recognition of revenues; the extent to which any customer outsourcing to our competitors or supplier consolidation increases the influence of competitors on our customers' purchases; our ability to protect intellectual property rights; our ability to maintain OEM, partner, reseller, and vendor support and supply relationships; and changes in the market price of the Company's common stock. The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

About Tekelec
Tekelec enables billions of people and devices to talk, text and access the Web. Our portfolio delivers a unique layer of intelligence allowing service providers to both manage and monetize the exponential growth in data traffic and applications. Tekelec has more than 25 offices around the world serving customers in more than 100 countries. For more information, please visit www.tekelec.com.

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