Nice Ltd. — M&A Activity 2005

Aug 18, 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 to Acquire Leading Australian Distributor Hannamax Hi-Tech Pty Ltd.

Acquisition expands leadership in APAC and in the fast growth Australian market

Ra’anana, Israel, August 18, 2005 - NICE Systems (NASDAQ: NICE) , the global provider of advanced solutions that enable organizations to extract insight from interactions, today announced it has signed a definitive agreement to acquire the assets of Hannamax Hi-Tech Pty Ltd, the company’s largest distributor in Australia and New Zealand, for $1.8 million in a one-time cash installment plus a future earn-out based on performance. The transaction is subject to satisfaction of customary closing conditions and is anticipated to close within the next few weeks.

Hannamax has worked with NICE Systems since 1993, during which time it has become the leading supplier of call center solutions in Australia. Together with Hannamax, NICE has captured a base of high-caliber brand-name customers, including the country’s top five banks, leaders from the insurance industry, the country’s leading outsourced contact centers, as well as government organizations.

This acquisition underscores NICE Systems’ commitment to an important market in a key region. NICE will be adding approximately 17 employees from Hannamax, which significantly extends the company’s presence and resources to sell and support its fully integrated end-to-end Insight from Interactions solutions. The acquisition will also enable NICE to expand and strengthen the company’s support organization in the region.

“The Australian market is important to our success in APAC,” said Doron Ben-Sira, President NICE APAC. “We expect this transaction to bring immediate value to our existing and potential customers through enhanced support with direct presence and contact with our important base of Australian customers.”

“With NICE’s proven track record of successfully integrating acquired businesses, we are looking forward to seamless business continuity with a relatively straightforward integration,” continued Mr. Ben-Sira.

The company believes that the acquisition will not significantly impact its financials and re-iterates the annual guidance provided during the 2005 second quarter earnings announcement. The guidance calls for revenues of between $304 - $309 million and pro-forma EPS of $1.55 - $1.63.

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 78 of the Fortune 100 companies. More information is available at www.nice.com.

Media

Galit Belkind Investors Amit Scheinmann

NICE Systems +1 877 245 7448 galit.belkind@nice.com NICE Systems +1 877 245 7449 ir@nice.com

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.