Selected First Quarter Fiscal 2007 Preliminary, Unaudited Financial Information
- First quarter 2007 bookings were $32.7 million compared to $40.4 million for the same period last year;
- Cash and investments at April 28, 2006 were $56.4 million (including $12.7 million in restricted cash and investments), down from $60.5 million at the end of the fourth quarter of 2006;

SEC Filing Update
As disclosed previously, as a result of Portal’s extended financial close process, the Company is currently delinquent in filing its Form 10-K for the fiscal year ended January 28, 2005 and in filing its Form 10-Qs and Form 10-K for fiscal 2006. The Company will also be delinquent in filing its Form 10-Q for the fiscal year 2007 first quarter which ended on April 28, 2006.

Tender Offer Update
On April 11, 2006, Portal agreed to be acquired by Oracle Systems Corporation, a wholly owned subsidiary of Oracle Corporation. Under the terms of an Agreement and Plan of Merger by and among Oracle Systems Corporation, Potter Acquisition Corporation, a wholly owned subsidiary of Oracle Systems Corporation and Portal, Potter Acquisition Corporation commenced a tender offer to purchase all outstanding shares of common stock of Portal at a price of $4.90 per share in cash. The tender offer is schedule to expire at 12:00 midnight on Monday, May 22, 2006.

The Board of Directors of Portal has unanimously approved the merger agreement with Oracle Systems, and determined that the tender offer and the related merger are advisable, fair to and in the best interest of Portal’s stockholders. Accordingly, the Portal Board of Directors unanimously recommends that you tender your shares in the tender offer before the scheduled expiration date of the tender offer at 12:00 midnight on Monday, May 22, 2006.

About Portal Software, Inc.
Portal Software is the premier provider of billing and Revenue Management solutions for the global communications and media markets. The Company delivers the only platform for the end-to-end management of customer revenue across offerings, channels, and geographies. Portal’s solutions enable companies to dramatically accelerate the launch of innovative, profit-rich services while significantly reducing the costs associated with legacy billing systems. Portal is the Revenue Management partner of choice to the world’s leading service providers including: Vodafone, AOL Time Warner, Deutsche Telekom, TELUS, NTT, China Telecom, Reuters, Telstra, China Mobile, Telenor Mobil, and France Telecom.

“Portal’s approach to Revenue Management is deeply rooted in its understanding of its customers’ business needs–scalability, time-to-market, ease of integration, and quick return on investment,” said Vidar Methi, Portal system manager at Telenor Mobile Nordic. “Portal is a valued partner in delivering strategic products and services that enable immediate solutions, and enable the rapid expansion of future profit-rich services to remain competitive in today’s marketplace.”

Additional results of the Portal Customer Satisfaction Scorecard found that Portal’s product quality, ease of configuration and integration, and innovative consulting services were the main drivers of the intent to repurchase. In response to product quality, more than 77 percent of customers surveyed found Portal’s product-based platform to be good or excellent, compared to the industry average of 67 percent of customers regarding their current solutions, as reported by VanillaPlus and Yankee Group. Likewise, more than 75 percent of Portal customers rated ease of integration as good or excellent, compared to the industry average of nearly 31 percent of customers.

“Portal continues its assault on the billing industry’s dirty little secret–poor customer satisfaction,” said Paul Hughes, vice president of billing and payment application strategies at Yankee Group. “With service providers facing an increasingly volatile market with competitors entering from every direction, billing and Revenue Management solutions will rise in prominence as a mission-critical and differentiating business weapon. As such, we have seen an increased willingness among service providers to shop for new solutions that best address today’s business climate.”

“We remain steadfast in our belief that customers should not be required to sacrifice market opportunity, business agility, or customer satisfaction in exchange for a functionally-rich solution tailored to their business,” said Dave Labuda, CEO of Portal Software. “We’re pleased that Portal’s customer satisfaction remains above the industry average, and are committed to improving upon it.”

Methodology
The Customer Satisfaction Scorecard is conducted by CustomerSat, the leading provider of enterprise solutions for measuring, analyzing, and managing enterprise-wide action responding to real-time customer feedback. The survey is designed to offer insight into Portal customers’ experiences in the continued effort to provide superior billing and Revenue Management solutions and support programs to the wireless, broadband and content services markets. CustomerSat surveyed 120 technology support, business owners, and executives, representing over 80 Portal customers. The survey was conducted online during November 2005. Portal has measured its customers’ satisfaction at 15 intervals over the past 7 years.

About Portal Software, Inc.
Portal is the leading worldwide provider of billing and Revenue Management solutions for the global communications and media markets. The company delivers the only platform for the end-to-end management of customer revenue across offerings, channels, and geographies. Portal’s solutions enable companies to dramatically accelerate the launch of innovative, profit-rich services while significantly reducing the costs associated with legacy billing systems. Portal is the Revenue Management partner of choice to the world’s leading service providers, including Vodafone, AOL Time Warner, Deutsche Telekom, Telstra, NTT, China Telecom, Reuters, China Mobile, Telenor Mobil, and France Telecom.

“The combination of Oracle and Portal delivers the first end-to-end packaged enterprise software suite for the communications industry,” said Oracle’s President Charles Phillips. “We supply technology and applications to over 90% of communications companies worldwide today, and billing is a logical and complementary addition for those customers.”

Oracle has had a long commitment to the communications industry. 17 of the top 20 most profitable communications companies run Oracle applications. Additionally Oracle’s Siebel Telecom applications have become the standard for telco call centers and customer care. Oracle Database 10g is the leading relational database and TimesTen is the most widely used in-memory database for the communications industry. Oracle Fusion Middleware is the fastest growing service delivery platform for next generation networks using network independent standards.

“This is exactly the kind of combination our customers have been asking for,” said Portal’s Founder and CEO, Dave Labuda. “Bringing together Oracle’s leading ERP, CRM and infrastructure software with Portal’s global billing and revenue management into an integrated solution is a huge win for our customers.”

Portal offers the only billing and revenue management solution with a modern, object-oriented architecture built on Oracle that can bill and manage all communications services including wireline, wireless, broadband, cable, voice over IP, IPTV, music, and video. As communications, publishing, media, and entertainment services converge, Oracle can support companies with a proven offering for billing, customer interaction, and management of digital services and content.

Portal’s management and employees will form a dedicated global communications business unit within Oracle concentrating on billing and revenue management. Bhaskar Gorti, Portal’s current SVP of worldwide sales, service and marketing, will lead the unit as General Manager, and Dave Labuda will become the unit’s CTO.

About Oracle
Oracle (NASDAQ: ORCL) is the world’s largest enterprise software company. For more information about Oracle, please visit our Web site at www.oracle.com

The panel will address new and alternative business models; how to make bundled services work; VOD as the killer app; assessing the best technology solutions; QOS issues; and global success stories.

The presentation will be at the Total Telecom World Telecommunications Congress, Hotel President Wilson, Geneva, Switzerland, on Thursday, April 27, 2006, 2:50 p.m. Additional information on the conference can be found on the Total Telecom World Telecommunications Congress website at http://www.totaltelecomworldcongress.com.

“Bruce is an exceptional sales executive, and I am confident that he will provide the leadership and execution needed to accelerate sales growth in North America,” said Bhaskar Gorti, Portal’s senior vice president of worldwide sales, services, marketing & alliances. “His success in the CALA market is a true testament to his knowledge of the marketplace and his ability to lead a highly successful sales force.”

During Grainger’s tenure with Portal, he has delivered excellent results in the CALA market. As vice president of CALA, he led the sales team that increased Portal’s sales in the region by over 300%. Grainger helped pioneer relationships with over 20 new provider accounts, including Telefonica in Mexico and Argentina, Cablevision Mexico, Colombia Movile, and Telecom Argentina, as well as many start-up providers, effectively positioning Portal as the leading provider of Revenue Management solutions in the CALA market. Grainger is an industry veteran with more than 15 years of experience, having led sales organizations in North America, Asia, and Europe, in addition to Latin America.

“North America represents a tremendous market opportunity for Portal,” said Grainger. “The Portal 7 platform with its real-time heritage enables service providers to capitalize on the emergence of triple-play and quad-play quickly and cost-effectively.”

Telecom Argentina selected Portal because of Portal 7′s flexibility and its ability to support both the company’s current business requirements and its long term growth plans. Portal was able to quickly demonstrate Portal 7′s superior capabilities through a pilot rating project which Portal successfully completed in one-tenth the time of Portal’s competitor.

“In the highly competitive Argentine market, it is essential that we are able to quickly capitalize on emerging trends in broadband,” said Guillermo Desimoni, executive director of information technology, Telecom Argentina. “Portal, through pilot programs and references, was able to demonstrate its superior ability to rapidly create innovative pricing and promotional offers that lead to higher margins and improved customer satisfaction.”

Telecom Argentina, an operator with over three million subscribers of its services, selected Portal because of Portal 7′s flexibility and its ability to support both the company’s current business requirements and its long term growth plans.

“Telecom Argentina is pioneering new levels of customer services in the Argentine market,” said Bruce Grainger, Portal’s vice president of sales for the Americas. “Portal provides Telecom Argentina with a flexible system that can support its entire range of services, from broadband to fixed and mobile, all on a single, scalable platform.”

The presentation will be at the MMS Congress 2006, Hilton Budapest WestEnd, Hungary, on Tuesday, March 14, 2006, 2:00 p.m.

Additionally, an Internet playback will be available an hour following the call until 12:00 a.m. PST on February 8, 2007 at the investor relations section of Portal’s web site at www.portal.com. A tele-replay of the call also will be available for seven days commencing two hours after the live call. The tele-replay numbers are (800) 642-1687 or (706) 645-9291 and the passcode is 5045851.

Available to Portal’s customers, system integrators, and technology partners, the Portal Certification Program offers training and testing for professionals whose job function includes the installation, implementation, and configuration of Portal’s billing and Revenue Management platform. Modeled after successful certification programs of leading enterprise software companies, Portal’s Certification Program credentials are tied to specific versions of Portal’s Revenue Management solution, Portal 7, to ensure that the individual’s knowledge is current and directly applicable to their IT environment. Five-day preparation training courses for the certification exams are available through Portal Education Services.

“Portal’s training and education program is enabling Accenture to continue developing leading-edge expertise in Portal 7,” said Bruno Gossi, Partner Telecom, Accenture. “We are very pleased with the recent introduction of the Certification Program as this will help us to monitor and prove the skill levels of our individuals. It will enable us to more easily place the correct skills into the projects as required and ensure increased customer confidence in our abilities.”

Exams for the three Specialist-level certifications are being administered by Thomson Prometric, an independent testing company with offices located around the world. Portal Professional certification requires a final project-based exam that is administered through one of Portal’s global education centers in London, Bangalore, and Cupertino.

“Portal’s Certification Program has already proven its value by implementing exams that truly validate an individual’s practical knowledge of our product,” said Juliana Tsai, principal course developer at Portal Software. “Our consultants are telling us that the exams help to demonstrate their ability to successfully implement our solutions.”

Additional information on Portal’s Certification program and requirements can be found on Portal’s website at www.portal.com/certification or by emailing training@portal.com.

FASTWEB is one of the world’s largest providers of IPTV services, with more than 600,000 customers throughout Italy. Every month FASTWEB’s TV clients view more than one million on-demand videos, record more than 400,000 programs, and spend an average of over EUR 300 per year in video content. FASTWEB is among Europe’s key providers of next generation telecommunications networks and services, which provide a complete alternative to those of traditional telephone networks. The company has gained competitive advantage over other telecommunications companies by utilizing breakthrough technology to deliver integrated voice, data, and video through packet-switching, utilizing its fiber-optic and xDSL network solution.