NICE is Recognized as the Clear Leader in the Quality Management Market Worldwide in Report by Leading Independent Analyst Firm Frost & Sullivan

Business Wire, Sept 8, 2004

RA'ANANA, Israel -- NICE Systems (Nasdaq:NICE), the global provider of advanced solutions and consulting services that enable organizations to extract insight from interactions to drive performance, today announced that it has been singled out as the global quality monitoring industry leader with 34.7% of the market worldwide (products and services). NICE also leads the combined software and hardware market worldwide with 41.1% market share - twice as much as its closest competitor.

Frost & Sullivan's World Agent Performance Optimization Market report, shows that NICE also leads each major geographical region, with 34% in North America and 51% in EMEA. This follows the 54.4% total market share in APAC market share published earlier this year.

According to the report, this success was a result of both organic growth and the 2002 acquisition of TCS, as well as "a technologically strong and robust product line, a vision for the future, an established global distribution network and the strength of the Customer Experience Management concept."

In addition, the report confirms the convergence of total recording and selective recording markets, and cites the benefits of choosing a single vendor with a combined offering. "We believe that the markets for full and selective recording have converged. From a quality monitoring perspective full or selective recording is not the question. The key is the benefits that can be accrued in terms of enhancing agent quality and optimizing call center performance. From the enterprise perspective, dealing with a single supplier for both full and selective recording is a benefit," says Seema Lall, industry analyst, Frost & Sullivan.

"We are happy to see further recognition of our market leadership and reinforcement of our long-time strategy of providing fully integrated compliance/risk management and quality monitoring solutions," said Zvi Baum, corporate vice president and general manager, product division, NICE Systems. "Frost & Sullivan's report validates our view that the arbitrary difference between selective and total recording is disappearing as more enterprises worldwide realize the clear benefits and greater value in the integrated approach."

About NICE

NICE Systems is the global provider of advanced solutions and consulting services that enable organizations to extract the value hidden within multimedia interactions. NICE solutions sharpen the awareness of organizations to help them generate insight from interactions for improved decision-making, better performance and enhanced security. NICE has more than 15,000 customers in over 100 countries, including the world's top ten banks and over 65% of the Fortune 100. More information is available at www.nice.com.

Trademark Note: 360(degrees) View, Agent@home, Big Picture Technology, Executive Connect, Executive Insight(a), Experience Your Customer, Investigator, Lasting Loyalty, Listen Learn Lead, MEGACORDER, Mirra, My Universe, NICE, NiceAdvantage, NICE Analyzer, NiceContact, NiceCLS, NiceCMS, NICE Feedback, NiceFix, NiceGuard, NICE Learning, NICE Link, NiceLog, NICE Perform, 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.

(a) In Australia only

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.