Nice Ltd. — Regulatory Filings 2005

Sep 21, 2005

NICE Systems Limited > T 972 9 775 3777 F 972 9 743 4282 8 Hapnina Street POB 690 E info@nice.com Ra’anana 43107 Israel

Insight from Interactions

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NICE Named Industry Leader by Independent Analyst Firm Frost & Sullivan

NICE named number one in influential World Agent Performance Optimization Market Report

Ra’anana, Israel, September 21, 2005 - NICE Systems (NASDAQ: NICE) , the global provider of advanced solutions that enable organizations to extract Insight from Interactions™ today announced that in the recent 2005 study by Frost & Sullivan entitled World Agent Performance Optimization Market, NICE ranked first in the global quality monitoring market. In addition, NICE was recognized for excellence in all areas of market leadership, including the success of the vision for business performance management that is based on the company’s Insight from Interactions strategy, enabled by the capabilities of NICE Perform™; as well as successfully transitioning to a solution focused company.

NICE has been singled out as the global quality monitoring industry leader with 33.7% of the worldwide market (products and services). NICE also leads the combined software and hardware market worldwide with 38.4% market share- nearly as much as its two closest competitors combined.

The Frost & Sullivan report shows that NICE also retained its number one position in each major geographical region as well, with 31% of (software and hardware) in North America and 50% in EMEA.

The report discusses NICE Perform’s capabilities in helping “tap the intelligence and gain insight from customer interactions, to enhance business performance throughout the enterprise.” Among the capabilities highlighted are word spotting, emotion detection and Talk Analysis.

“NICE also offers an integrated and feature rich coaching module to its customers. The functionality contained in this module enables supervisors to create and send coaching packages to agents,” says Seema Lall, industry analyst, Frost & Sullivan. “NICE provides a very comprehensive analytics solution encompassing a broad range of features and capabilities within a single, easy to use interface. Frost & Sullivan lauds NICE System's attempt to help enterprises tap on the hidden 'goldmine' within customer interactions.”

The ranking follows on another recent Frost & Sullivan survey of the industry in APAC in which NICE earned the Frost & Sullivan 2005 Market Leadership Award in the Asia Pacific call monitoring systems market. Audrey William, Industry Manager, ICT Practice, Frost & Sullivan Asia Pacific, said, "NICE has emerged as a powerhouse, gaining substantial mindshare and market share in the Asia Pacific call monitoring space in 2004. Its success can be attributed to its excellent strategic alliances, as well as a solid network of channel partners. In addition, NICE's ability to innovate its offerings has given it an edge in the contact center industry."

Manoj Menon, Partner at Frost & Sullivan added, "Frost & Sullivan believes that NICE will continue to be a dominant player in the call monitoring market in years to come. The company has focused exceptionally well in key verticals such as the financial services, telecommunications and outsourcing segments."-

"We are happy to see further recognition of our market leadership and validation of our strategy for providing contact centers and the enterprise with the powerful capabilities of extracting Insight from Interactions,” said Zvi Baum, NICE President of Enterprise Interactions Solutions. "We are pleased that Frost & Sullivan shares our view that a fully integrated end-to-end solution that performs multi-dimensional interaction analytics is the key to improving performance at the agent, contact center and enterprise levels.”

About NICE

NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions™, based on advanced content analytics - of telephony, web, radio and video communications. NICE's solutions improve business and operational performance, as well as security. NICE has over 23,000 customers in 100 countries, including the world's top 10 banks and over 75% of the Fortune 100 companies. More information is available at www.nice.com.

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Galit Belkind NICE Systems +1 877 245 7448 galit.belkind@nice.com Investors Amit Scheinmann NICE Systems +1 877 245 7449 ir@nice.com

Investors Amit Scheinmann

Trademark Note: 360[0] View, Agent@home, Big Picture Technology®, Executive Connect®, Executive Insight*, Experience Your Customer®, Investigator, Last Message Replay, Lasting Loyalty, Listen Learn Lead®, MEGACORDER, Mirra®, My Universe, NICE®, NiceAdvantage®, NICE Analyzer, NiceCall®, 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 ALTO, NiceVision Harmony®, NiceVision Mobile®, NiceVision Pro®, NiceVision Virtual®, NiceWatch, Renaissance®, Scenario Replay, Secure Your Vision, Tienna®, TrunkNet®, Universe®, 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.

*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.