NEWS

Mt. Laurel, N.J., October 1, 2008 – Telefónica España has chosen Ulticom’s^® (ULCM.PK) Signalware^® application development and deployment platform as the foundation for the evolution of its prepaid wireless IN infrastructure in Spain, Ulticom announced today.

Ulticom distributor partner and integrator Mántica Solutions is advising Telefónica on its program to evolve and consolidate its service delivery platform base by adopting Linux-based technologies and applications.

Ulticom’s Signalware SS7 platform for Linux – including software and PCI Express boards – will be the primary signaling platform for Telefónica’s prepaid wireless services and the foundation for next-generation, fixed-mobile converged charging. The new signaling platform will enable Telefónica to achieve service consolidation, outstanding performance and infrastructure cost-saving. Other Ulticom-powered deployments by Telefónica in Spain include Presence and Location services.

“Ulticom’s Signalware platform has already proven itself in seven years of service in the Telefónica network, and we expect it to be a pivotal part of our prepaid services in the coming years. We have experienced a significant improvement in terms of performance and availability, and are impressed with the high level of quality, service and support provided by Ulticom and Mántica,” said José Gallego, Director of Services Capabilities for mobile services at Telefónica España.

“Flexibility, control, and a rich feature set continue to make Telefónica’s prepaid services an attractive offering for wireless subscribers,” said Kevin Byrne, Director of Marketing and Sales Operations at Ulticom. “We take pride in working with leading wireless service providers such as Telefónica where quality, robustness, and scale combine to deliver high value services.”

“Ulticom and Mántica continue to benefit from a long-standing, productive partnership,” said Carlos Egea, Director of Sales and Business Development, Mántica. “Ulticom’s industry leading signaling solutions portfolio, combined with Mántica’s local technical consulting and support, proves to be an attractive value proposition to Telefónica.”

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Note: This Release contains "forward-looking statements" for purposes of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual events or results could differ materially from the results predicted or from any other forward-looking statements made by, or on behalf of, the Company, and should not be considered as an indication of future events or results. Important factors that could cause actual results to differ materially include: the impact of the Company’s announced financial restatement; the Company’s success in implementing remedial measures that are expected to be adopted by the Board of Directors in connection with the Company’s Audit Committee investigations; the Company's inability to file required reports with the Securities and Exchange Commission; the risks of dealing with potential claims, litigation, governmental investigations and proceedings that may be commenced concerning such matters, including any enforcement action by the Securities and Exchange Commission in connection with its investigation into historical accounting practices at the Company ; risks associated with the delisting of the Company's shares from The NASDAQ Stock Market and the quotation of the Company's common stock in the "Pink Sheets," including any adverse effects related to , the absence of market makers; ; risks associated with the development and acceptance of new products and product features; risks associated with the Company's dependence on a limited number of customers for a significant percentage of the Company's revenues; changes in the demand for the Company's products; changes in capital spending among the Company's current and prospective customers; aggressive competition may force the Company to reduce prices; risks associated with rapid technological changes in the telecommunications industry; risks associated with making significant investments in the expansion of the business and with increased expenditures; risks associated with holding a large proportion of the Company's assets in cash equivalents and short-term investments; risks associated with the Company's products being dependent upon their ability to operate on new hardware and operating systems of other companies; risks associated with dependence on sales of the Company's Signalware products; risks associated with future networks not utilizing signaling systems and protocols that the Company's products are designed to support; risks associated with the products having long sales cycles and the limited ability to forecast the timing and amount of product sales; risks associated with the integration of the Company's products with those of equipment manufacturers and application developers and the Company's ability to establish and maintain channel and marketing relationships with leading equipment manufacturers and application developers; risks associated with the Company's reliance on a limited number of independent manufacturers to manufacture boards for the Company's products and on a limited number of suppliers for board components; risks associated with becoming subjected to, defending and resolving allegations or claims of infringement of intellectual property rights; risks associated with others infringing on the Company's intellectual property rights and the inappropriate use by others of the Company's proprietary technology; risks associated with the Company's ability to retain existing personnel and recruit and retain qualified personnel; risks associated with the increased difficulty in relying on equity incentive programs to attract and retain talented employees and with any associated increased employment costs; risks associated with rapidly changing technology and the ability of the Company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the Company operates; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of Ulticom with the Securities and Exchange Commission. All such documents are available through the SEC's website at www.sec.gov or from Ulticom's web site at www.ulticom.com. Ulticom makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.