Intervoice Announces Results for the First Quarter of Fiscal 2006; Sales of $43.3 Million and Net Income of $0.10 Per Diluted Share

Business Wire, June 20, 2005

DALLAS -- Intervoice, Inc. (Nasdaq:INTV) today reported revenues of $43.3 million for its first fiscal quarter ended May 31, 2005, a 3.2 percent increase from $41.9 million of revenues posted in the same quarter last year. Net income for the first quarter of fiscal 2006 was $3.9 million, or $0.10 per diluted share. Net income reflects a 23 percent improvement from net income of $3.2 million, or $0.08 per diluted share, posted in the first quarter of last year.

Cash balances increased by $1.2 million to $61.4 million during the first quarter of fiscal 2006, and the Company reduced its total debt balance to zero through repayments totaling $1.7 million. Working capital increased from $43.8 million at Feb. 28, 2005 to $47.5 million at May 31, 2005.

"Our financial strength and profitability provide a strong foundation for growth," said Craig Holmes, the Company's Executive Vice President and Chief Financial Officer. "I am pleased that our business model continued to deliver solid profitability during a challenging quarter."

The Company's solutions backlog of $28.5 million at May 31, 2005, is down from $43.2 million at May 31, 2004 and down from $35.4 million at the end of last quarter. The Company's May 31, 2005 backlog excludes a purchase order for $5.8 million received prior to quarter end for which the associated signed contract was not received until after quarter end.

"The current softness in the market for our enterprise solutions is disappointing, but we are very pleased with our sales and pipeline for our new Omvia Media Exchange solution," said Bob Ritchey, the Company's President and CEO. "We believe the Company's long-term outlook continues to be favorable, and I currently believe revenues for the second quarter of fiscal 2006 will be in the $40 million to $45 million range. I look forward to discussing details of our first fiscal quarter and outlook for the future in tomorrow's conference call with investors."

The Company has scheduled a conference call for 9:00 a.m. central time on Tuesday, June 21, 2005, to discuss its first fiscal quarter results and its outlook for the future. To participate in the call, dial 719-457-2637. The conference call confirmation code is 4244375. A webcast and replay of the call will be available at the Company's Web site: www.intervoice.com.

Intervoice has included in this press release certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning its business and operations that are based on management's current beliefs. All statements other than statements of historical fact in this press release are forward-looking statements. Readers are cautioned to read the risks and uncertainties, described in the Company's filings with the Securities and Exchange Commission, including without limitation, the risks and uncertainties set forth under the caption entitled "Cautionary Disclosures to Qualify Forward-Looking Statements" in the Company's Annual Report filed on Form 10-K and Quarterly Reports filed on Form 10-Q. Intervoice cautions current and potential investors that such risks and uncertainties could result in material differences from the forward-looking statements in this press release.

About Intervoice

Intervoice, Inc. (Nasdaq:INTV) provides leading enterprises and network operators with the platform, software, applications and services necessary to optimize the customer experience through voice automation solutions. Omvia(R), the open, standards-based Intervoice product suite, offers unparalleled flexibility for advanced multi-media messaging, portal, IVR and payment applications. The Company's two market units focus on enterprise and network markets, providing solutions that improve operational efficiencies, drive revenue and increase customer satisfaction and loyalty. Building on more than 20 years of systems integration and service delivery experience, the Professional Services Agility Suite from Intervoice is designed to provide proven best practices toward design, implementation, and optimization of voice applications. Intervoice systems have been proven in more than 23,000 implementations worldwide at companies across a variety of industries including: Ameritrade, Amtrak, Atmos Energy, Citibank, CSX Transportation, MasterCard, O2, Rogers Wireless, SBC, Travelocity, Verizon and Vodafone. A Microsoft Certified Partner and Certified Partner for Learning Solutions, Intervoice is headquartered in Dallas with offices in Europe, the Middle East, South America, Africa and Asia-Pacific. For more information, visit www.intervoice.com.