Liaoning CNC Taps Portal for Revenue Management Across New Broadband and Content Offerings; Subsidiary of China Netcom Expands Relationship with Portal to Address High-Growth Market Opportunities

Business Wire, Oct 17, 2005

CUPERTINO, Calif. -- Portal Software, Inc. (Pink Sheets:PRSF), the premier global provider of billing and Revenue Management solutions, today announced that Liaoning CNC, a subsidiary of China Netcom (Group) Company Limited, has expanded its use of Portal's Revenue Management solution to support additional broadband and content rating and billing service offerings. Portal, in conjunction with China-based partner GE-Soft (Shenyang Global Envoy Software Co., Ltd.), worked closely with Liaoning to integrate Liaoning's broadband and content users onto a single unified Revenue Management platform, enabling the company to quickly deploy convergent products and allow subscribers to choose services based on multiple pricing packages.

Liaoning, having first selected Portal to provide billing for its dial-up services in 1999, sought Portal's assistance in meeting growing customer demand and market opportunities in broadband and value-added content services. This expansion enables Liaoning to:

--Support significantly more broadband subscribers, services, and operational management functions;

--Provide for additional content services, including instant messaging, online gaming, university education registration, pre-paid top-ups, credit-card payments, enhanced discounting, video on demand, and music downloads, via an extended range of content providers; and,

--Offer enhanced web-based, customer self-care and CSR management capabilities, based on Portal's WebKit, allowing customers to manage their account and pricing profiles easily.

"Portal enables Liaoning CNC to rapidly develop and profitably launch new services to meet the ever-changing demands of our customers," said Pang Yang, IT and projects manager of Liaoning CNC. "By integrating our broadband and content offerings we can gain competitive differentiation in the market."

Liaoning CNC services the Liaoning province, which is located in northeastern China and is home to approximately 40 million people. The region is a leader in a variety of industries including electronics and manufacturing, which is expected to fuel continued broadband growth. Broadband is among the most rapidly growing businesses for Liaoning. The company reached one million broadband subscribers earlier this year and expects to double that number in less than 18 months.

"The rapid growth of content -- from music to video -- is rapidly transforming the requirements of broadband service providers," said Bhaskar Gorti, senior vice president at Portal Software, Inc. "Portal is helping Liaoning to deliver a variety of content pricing and promotional programs that its customers want, leading to improved margins and profitability."

About Portal Software, Inc.

Portal is the leading worldwide provider of billing and Revenue Management solutions for the global communications and media markets. The company delivers the only platform for the end-to-end management of customer revenue across offerings, channels, and geographies. Portal's solutions enable companies to dramatically accelerate the launch of innovative, profit-rich services while significantly reducing the costs associated with legacy billing systems. Portal is the Revenue Management platform of choice to the world's leading service and content providers, including Vodafone, AOL Time Warner, Deutsche Telekom, Telstra, NTT, China Telecom, Reuters, China Mobile, Telenor Mobil, and France Telecom.

Forward Looking Statement

Statements in this release regarding potential customer relationships, the possibility of contracted services from Portal, and future financial standings are forward looking statements. Such forward looking statements may not materialize and involve significant uncertainties and risks. These and other factors are described in detail in our Annual Report on Form 10-K for the fiscal year ended January 31, 2004 and our quarterly reports on Form 10-Q. All statements made in this press release are made only as of the date set forth at the beginning of this release. Portal undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change.

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