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Amdocs Realigns Strategy in China and Divests a Majority Stake in Longshine

ST. LOUIS, April 5 /PRNewswire-FirstCall/ -- Amdocs (NYSE: DOX), the leading provider of customer experience systems, today announced it is realigning its strategy in China. Amdocs has signed a partnership agreement through which Amdocs will divest an 81 percent majority stake in its Longshine business to a newly-formed and locally-managed entity, Longshine Technology Holding, Ltd. The divestiture will better enable Longshine to focus on its core strength in custom built development services for telecommunications and utilities companies in China, while allowing Amdocs to continue to address the needs of service providers in China with its CES 8 portfolio.

"We are very excited about the opportunities that this deal will bring about locally, and we feel confident that Longshine will continue to service its customers well," said XianBiao Zheng, CEO of Longshine. "We see this as a step forward in allowing both companies to focus on their areas of competitive strength."

Amdocs remains committed to the Chinese market and will pursue opportunities in China both directly and through its holding in Longshine. Amdocs will continue to offer its leading CES 8 products throughout China and support current customers, including Beijing Mobile in its Beijing support center. In addition, Amdocs plans to continue to operate and grow its delivery center in Tianjin.

"Amdocs is committed to success in China. However, the market dynamics have not evolved in the way we had anticipated when we acquired Longshine in 2005," said Ayal Shiran, head of the Customer Business Group for Amdocs Management Limited. "At this juncture, many Chinese telecommunications companies are still demanding locally-driven, custom built system development from companies like Longshine, while much of Amdocs' strength lies in our industry-leading CES 8 portfolio and our success in delivering our own products. We feel both models hold value for China; however, we made the decision to seek local leadership to maximize the opportunity that exists today for Longshine and better enable Amdocs to focus on its core value proposition."

Amdocs will record a $0.09 to $0.11 per share after-tax charge in the quarter ended March 31, 2010 related to the divestiture of the Longshine ownership stake, subject to financial results for the Longshine operations in the second fiscal quarter ended March 31, 2010. This charge was not contemplated in the financial outlook provided for the second fiscal quarter in our press release dated January 20, 2010. Given the one-time nature of the charge, Amdocs will exclude this charge from its presentation of non-GAAP results. The transaction is subject to customary closing conditions and approvals and is expected to close by the end of April 2010.

About Amdocs

Amdocs is the market leader in customer experience systems innovation. The company combines business and operational support systems, service delivery platforms, proven services, and deep industry expertise to enable service providers and their customers to do more in the connected world. Amdocs' offerings help service providers explore new business models, differentiate through personalized customer experiences, and streamline operations. A global company with revenue of $2.86 billion in fiscal 2009, Amdocs has approximately 18,000 employees and serves customers in more than 60 countries worldwide. For more information, visit Amdocs at www.amdocs.com.

Amdocs Forward looking statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2009, filed on December 7, 2009 and our Form 6-K for the first quarter of fiscal 2010 filed on February 8, 2010.

SOURCE Amdocs