Tekelec Announces Restructuring Plan

Business Wire, June 21, 2006

MORRISVILLE, N.C. -- Tekelec (NASDAQ: TKLC), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, announced a restructuring plan today as part of its ongoing efforts to align its cost structure with the business opportunities in certain business units and operating groups.

The Company's restructuring plan involves the termination of approximately 60 employees across the Company's business units, customer service organization and operations group. The majority of the terminated employees worked directly for or in support of the Switching Solutions Group based in Plano, Texas. The action is principally the result of the Company realigning its cost structure to better match its business opportunities and to complete the integration of past acquisitions. The Company estimates that it will incur a restructuring charge in the quarter ended June 30, 2006 of approximately $3.4 million to cover severance and other costs associated with this reduction in force. The estimated annual operating cost savings resulting from this restructuring activity is expected to be between $8.0 and $8.5 million.

About Tekelec

Tekelec is a high-performance network applications company that is accelerating the transition to Internet protocol multimedia subsystem (IMS) networks for service providers around the globe. With its experience at the intersection of network applications and session control, Tekelec creates highly efficient platforms for managing media and delivering network solutions. Corporate headquarters are located near Research Triangle Park in Morrisville, N.C., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.