Nice Systems Settles Remaining Securities Litigation in the U.S.; All Claims Settled Without Admission of Liability or Wrongdoing

Business Wire, Nov 27, 2002

Business Editors

RA'ANANA, Israel--(BUSINESS WIRE)--Nov. 27, 2002

NICE Systems (Nasdaq:NICE), a worldwide leader of multimedia recording solutions, applications and related professional services for business interaction management, today announced that it has reached settlement agreements on the two remaining securities lawsuits in the United States.

The company previously announced in March 2002 that it had settled the securities litigation in Israel. The lawsuits were filed as a result of the restatement of NICE's financial results for 1999 and certain periods in 2000.

NICE has entered into an agreement to settle the securities class action lawsuit filed against the Company and certain of its former officers in the United States District Court for the District of New Jersey. Under the terms of the settlement, which is subject to court approval, all claims against the Company and all other defendants will be dismissed without admission of liability or wrongdoing by any party. The $10 million settlement will be funded entirely by the Company's directors and officers liability insurance.

The Company has also settled a separate action filed against NICE and its wholly-owned subsidiary by Douglas Chapiewsky in the District Court, City and County of Denver, State of Colorado. Mr. Chapiewsky was the sole shareholder of CenterPoint Solutions, Inc., which was acquired by NICE in April 2000. Under the terms of this settlement, all claims will be dismissed without admission of liability or wrongdoing by any party.

The settlement consists of $3 million plus 50,000 shares of NICE Systems' ordinary shares, which have been in escrow since Q2 of 2000, pursuant to an earn-out provision of the original acquisition agreement. The settlement will be paid during the current quarter, and NICE is pursuing reimbursement from its insurance company.

Commenting on these settlements, Haim Shani, chief executive officer of NICE, said "We believe it is in the best interests of the Company and its shareholders to remove the uncertainty, expense and distraction of this litigation and we are pleased to have this behind us."

About NICE

NICE Systems (Nasdaq:NICE) headquartered in Ra'anana, Israel, is a worldwide leader of multimedia digital recording solutions, applications and related professional services for business interaction management. NICE products and solutions are used in contact centers, trading floors, air traffic control (ATC) sites, CCTV (closed circuit television) security installations and government markets. NICE's synergistic technology platform enables customers to capture, evaluate and analyze business interactions in order to improve business processes and gain competitive advantage. NICE's subsidiaries and local offices are based in the United States, Germany, United Kingdom, France and Hong Kong. The company operates in more than 100 countries through a network of partners and distributors. (NICE website: www.nice.com)

Trademark Note: 3600 View, Agent@home, Big Picture Technology, Executive Connect, Executive Insight(1), Experience Your Customer, Investigator, Lasting Loyalty, Listen Learn Lead, MEGACORDER, Mirra, My Universe, NICE, NiceAdvantage, NICE Analyzer, NiceCall, NiceCLS, NiceCMS, NICE Feedback, NiceFix, NiceGuard, NICE Learning, NICE Link, NiceLog, ScreenSense, NiceScreen, NiceSoft, NICE Storage Center, NiceTrack, NiceUniverse, NiceUniverse LIVE, NiceVision, NiceVision Harmony, NiceVision Mobile, NiceVision Pro, NiceVision Virtual, NiceWatch, Renaissance, Secure Your Vision, Tienna, Wordnet and other product names and services mentioned herein are trademarks and registered trademarks of NICE Systems Ltd. All other registered and unregistered trademarks are the property of their respective owners.

(1) In Australia only

NICE's worldwide clients include: ABN Amro, Bank of England, Boston Communications, Compaq Computer Corporation, Deutsche Bank, Dresdner Bank, Emeraude Group, US Federal Aviation Administration, Hong Kong Airport, Japan Ministry of Transport, MicroAge Teleservices, NAV Canada, Nokia, SNT Group, Software Spectrum and Sydney Airport. (NICE Web Site: www.nice.com)

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, pressure on pricing resulting from competition, and inability to maintain certain marketing and distribution arrangements, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission.