Telefonica del Peru Implements MIND CTI's Billing For IP Services; Deal Strengthens MIND CTI's Presence in South America

Business Wire, March 20, 2002

Business Editors and Telecommunications Writers

YOQNEAM, Israel--(BUSINESS WIRE)--March 20, 2002

MIND CTI (Nasdaq:MNDO) today announced that Telefonica del Peru has selected the MIND-iPhonEX(R) real-time billing and customer care solution for its IP services offering.

MIND-iPhonEX provides Telefonica del Peru with prepaid and post-paid VoIP billing along with the means to mediate, rate and bill additional advanced IP services.

"Telefonica del Peru, in its search for new and innovative services for its customers, has selected the MIND-iPhonEX billing solution for its new IP-based offering," said Rafael Pereira del Estal, Planning Manager at Telefonica. "The initial implementation will focus on prepaid and post-paid VoIP services, and shortly after that will expand to additional IP based services. Our decision to select the MIND-iPhonEX solution was based on its advanced capabilities, tremendous scalability as well as its competitive price. These and other features have positioned MIND as the preferred partner for Telefonica del Peru," added Pereira del Estal.

"Telefonica del Peru is a subsidiary of Telefonica SA, the leading telecommunications operator in the Spanish and Portuguese speaking world," said Ilan Melamed, Vice President of US Operations at MIND CTI. "We are proud to be selected by this great company as their preferred partner for the deployment of IP services. Telefonica del Peru is an important strategic customer for us and we believe that this win will deepen our penetration of the South American market."

MIND provides wireline, wireless, satellite and cable operators as well as NextGen communications providers with a powerful and flexible real-time billing platform, supporting real-time mediation, provisioning and rating. MIND-iPhonEX features flexible rating and diverse business models, offering advanced partner management and revenue sharing schemes. MIND-iPhonEX's highly scalable, open and modular architecture enables unlimited growth and seamless integration with other systems and applications, supporting any network and service expansion.

About Telefonica del Peru

Telefonica del Peru (TdP) is the principal global telecommunications operator in Peru. By the close of the third quarter 2001, TdP had 1,725 million phone lines in service and continues to lead the local market. A major contributor to this success was the commercialization of innovative prepaid products adapted to the characteristics of the Peruvian market launched in 2000 such as the "telefono popular" (fixed line with limited consumption). In 2000, this service accounted for 73% of the revenue for this market segment.

Telefonica S.A. is the world's leading communications operator in Spanish and Portuguese speaking countries, where it has a potential market of over 550 million people and more than 60 million customers. With over 148,000 employees worldwide and revenues of US$26 billion, it is one of the world's largest providers of communications services. Telefonica offers services in 48 countries, with subsidiaries in Latin America, Europe, the United States, Africa and Asia.

Telefonica is the premier investor in Latin America and the indisputable leader in the fixed telephony market, with more than 21.6 million operating phone lines by the end of September 2001 and has major investments and activities in Argentina, Brazil, Chile, El Salvador, Guatemala, Peru, Puerto Rico and Venezuela.

Telefonica Latinoamericana is the company in charge of managing this activity in the region, such as Advance (ISP in Argentina), Cable Magico (Cable TV in Peru), Sonda (Data services in Chile) and CTI (a carrier acquired in 2000 to manage the integration of International traffic from Telefonica's Latin America operators to and from the USA).

About MIND

MIND is a leading global provider of billing and customer care, accounting and management solutions for voice, data and IP services. Our customers include worldwide leading carriers servicing millions of subscribers, using our end-to-end solutions for the deployment of new services. MIND operates from offices in the United States, Europe, China, Japan and Israeli headquarters. For information about MIND and its products visit the company Web site: http://www.mindcti.com.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission.