Nice Ltd. — Capital/Financing Update 2004

Jul 14, 2004

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NICE Systems Wins Two Contracts for Intelligence Solutions to Internal Security Agencies in EMEA, Worth $4.5 Million in Total

Ra'anana, Israel, July 14, 2004 -- NICE Systems Ltd. (NASDAQ: NICE), a worldwide leader of multimedia recording solutions, applications and related professional services for business interaction management, today announced that it has won two contracts for the deployment of its advanced integrated telecommunication interception and analysis solution, NiceTrack™ in the EMEA region (Europe, Middle East and Africa). The total combined value of the contracts won is $4.5 million, which is expected to be largely delivered over the next 12 months.

NiceTrack answers the needs of law enforcement agencies, internal security and intelligence organizations to improve their telecommunication interception and analysis capabilities to aid them in the ever-more sophisticated fight against terrorism, crime and other threats to security. NICE’s technology overcomes various technological and operational challenges to produce meaningful intelligence via a unified system that collects and analyzes both telephony and Internet data on a single platform.

“These two new contracts indicate that NICE solutions are recognized by intelligence and security professionals across the globe as important tools with which to combat the threats to societies and economies presented by organized groups in the modern age,” confirmed Yoav Zaltzman, corporate vice president and general manager of the intelligence solutions division at NICE. “Demand for our solutions is growing around the globe and particularly in countries deploying internet and cellular networks at an ever-increasing rate, where new next-generation, scalable solutions are required instead of legacy systems.”

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, Canada, Germany, United Kingdom, France and Hong Kong. The company operates in more than 100 countries through a network of partners and distributors.

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

Trademark note: 360° View, Agent@home, Executive Connect, Executive Insight*, Experience Your Customer, Lasting Loyalty, Listen Learn Lead, MEGACORDER, MyUniverse, NICE (and design), 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 Mobile, NiceVision Pro, NiceVision Virtual, NiceWatch, Secure Your Vision 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.

*Only in Australia

Media

Will Hart NICE Systems 972-9-7753944 william.hart@nice.com Investors Rachela Kassif NICE Systems 972-9-775-3899 investor.relations@nice.com 877-685-6552 Claudia Gatlin CMG International 973-316-9409 claudia@cmginternational.us

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.