Amdocs Limited (NYSE: DOX) today reported that for the quarter ended June 30, 2006, revenue was $626.4 million, an increase of 23.5% from last year’s third quarter. Excluding acquisition-related costs, which include amortization of purchased intangible assets and the write-off of in-process research and development and excluding equity-based compensation expense, net of related tax effects, of $20.6 million, net income on a non-GAAP basis was $106.2 million, or $0.49 per diluted share, compared to non-GAAP net income, excluding $1.7 million of acquisition-related costs net of related tax effects, of $78.8 million, or $0.37 per diluted share, in the third quarter of fiscal 2005. The Company’s net income was $85.6 million, or $0.39 per diluted share, compared to net income of $77.1 million, or $0.36 per diluted share, in the third quarter of fiscal 2005. Free cash flow, defined as cash flow from operations less net capital expenditures and principal payments on capital leases, was $94 million in the quarter.

“We are pleased to again report record revenues and increasing profitability,” said Dov Baharav, chief executive officer of Amdocs Management Limited. “We see demand in the market, which continues to be driven by service providers’ need to address competition, consolidation and convergence. We have strengthened our presence in the digital content area with our acquisition of Qpass and we are expanding our OSS activities with our pending acquisition of Cramer. Amdocs is positioned as the only vendor that can provide an end-to-end solution, from business support systems — or BSS — to OSS for the leading services providers. This will put us in the leading position to benefit from the growth opportunities as service providers transform their organizations in order to offer new products and services. We are confident that our success in 2006 will continue as we look towards fiscal 2007.”

During the third quarter, Amdocs new business included 11 key wins, across geographies and lines of business. Amdocs expanded its relationship with Rogers Communications, which will install Amdocs CRM across its cable, wireless and telecom lines of business as part of a rollout of an integrated customer management strategy. In Australia, Telstra has selected Amdocs as one of the key vendors for an OSS transformational program. In the United States, Amdocs was awarded several projects related to assisting customers in their consolidation and integration of acquisitions. In broadband cable and satellite, a customer has signed a contract extension. Several other customers, including some new logos, have chosen Amdocs for CRM, Amdocs Partner Management and mediation projects.

Financial Outlook
Amdocs expects that revenue for the fourth quarter of fiscal 2006 will be approximately $657 million. Diluted earnings per share on a non-GAAP basis for the fourth quarter are expected to be $0.49, excluding acquisition-related costs and the impact of approximately $0.04-$0.05 per share of equity-based compensation expense, net of related tax effects. Diluted GAAP EPS is expected to be approximately $0.41-$0.42. This guidance excludes any potential impact of the pending acquisition of Cramer. Amdocs expects that it may incur a one-time charge in its fourth fiscal quarter to account for certain costs related to the Cramer acquisition.

Preliminary fiscal 2007 guidance: Expected revenue of approximately $2.880-$2.980 billion and diluted non-GAAP EPS of $2.06-$2.16, which excludes acquisition-related costs and approximately $0.19-$0.22 per share of equity- based compensation expense, net of related tax effects. This guidance includes the expected impact of the pending acquisition of Cramer. Amdocs expects to provide guidance for diluted GAAP EPS after the purchase price accounting for the acquisition is completed.

Amdocs will host a conference call on July 19, 2006 at 5 p.m. Eastern Time to discuss the Company’s third quarter results. The call will be carried live on the Internet via http://www.investorcalendar.com/ and the Amdocs website, http://www.amdocs.com/.

About Amdocs
Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of integrated customer management by the world’s leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle, Amdocs enables service companies to deliver an intentional customer experience(TM), which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with revenue of more than $2 billion in fiscal 2005, Amdocs has over 14,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at http://www.amdocs.com/.