Nice Ltd. — M&A Activity 2005

Jun 1, 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 Completes Acquisition of Dictaphone’s Communications Recording Systems Business

Ra’anana, Israel, June 1[st] , 2005 - NICE Systems (NASDAQ: NICE) , the global provider of advanced solutions that enable organizations to extract insight from interactions today announced the completion of its acquisition of Dictaphone’s Communications Recording Systems (CRS™) business, a leading provider of liability and quality management systems for first responders, critical facilities, contact centers and financial trading floors. The acquisition of the assets of Dictaphone’s CRS business, originally announced on April 11, 2005, was an all-cash transaction for approximately $38.5 million.

NICE expects that the transaction will consolidate the company’s leadership position with the largest market share in contact centers, financial trading floors and with first responders and command and control centers. Furthermore, with Dictaphone CRS’s intellectual property portfolio, the broadest in the industry, and CRS's reputation for quality, the acquisition is expected to accelerate incremental sales of NICE’s Insight from Interactions solutions for the public and security and enterprise sectors.

Haim Shani, Chief Executive Officer of NICE commented, “The Dictaphone CRS acquisition significantly accelerates company growth and solidifies our competitive position in each of NICE’s key sectors. It provides a very large base for opportunities to upsell our Insight from Interactions solutions, and brings tremendous value to the joint customer base with the largest support organization in the industry.”

NICE reiterates previous guidance for 2005, where the acquisition of Dictaphone’s CRS business is expected to add $20 million to NICE’s top-line and 10 cents to the bottom line, taking the company’s revenues to $295 - $300 million. Pro forma EPS excluding the acquisition-related amortization is expected to be approximately $1.50-1.60 per diluted share.

Given the early closing date versus expectations, revenue for the second quarter of 2005 is expected to be higher by $1.5-2 million; and as a result of earlier recognition of acquisition and integration related costs, a $1.5 million cost is excepted to affect the bottom line. Pro-forma guidance for the second quarter, which excludes the impact of Dictaphone, remains unchanged at revenues of $67-70 million and EPS of $0.32-$0.36.

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 15,000 customers in 100 countries, including the world's top 10 banks and 65% of the Fortune 100. More information is available at www.nice.com.

Media Galit Sadan Investors Amit Scheinmann

NICE Systems +1 877 245 7448 galit.sadan@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.