Formula Telecom Solutions Ltd. (FTS) Announces Annual Report and Financial Statements for the Year Ended 31 December 2007

FTS highlights for the 12 months that ended 12 December 2007:

* 2007 second half net profit of USD $1,793,000 compared to net loss of USD $240,000 in the first half of 2007;

* 2007 second half gross profit up by 10% to USD $8,188,000 compared to USD $7,450,000 in the first half of 2007;

* 2007 second half revenues up by 9% to USD $16,754,000 compared to USD $15,351,000 in the first half of 2007;

* 12 month net profit USD $2,033,000 (2006: net loss USD $1,430,000);

* 12 month gross profit up by 16% to USD $15,638,000 (2006: USD $13,522,000);

* 12 month operating income USD $630,000 (2006: operating loss USD $3,355,000);

* 12 month revenues down by 2% to USD $32,105,000 (2006: USD $32,760,000,);

* Three new customers announced during 2007: Vodafone Iceland, Globalcom Inc., USA, and a contract in a West African country;

* New partnerships in 2007 included HP, Tech Mahindra, Allot, Sandvine and a major Chinese network solutions provider; and

* Acquired Danet Inc. and its customers’ contracts.

Commenting on the results, the FTS Chief Financial Officer, Alon Raz, said, “In 2007, FTS focused substantial efforts on recovering from the losses incurred during 2006 by the toll road project. We have also completed a highly efficient, widespread reorganization, enabling us to cope more efficiently with the challenges of a changing market. We are pleased to announce that we have been successful in both these endeavors, bringing the company back to substantial profitability. This turnaround is testament to the management’s experience and dedication, and to the company’s ability to overcome major obstacles. Our management team can now focus its attention on growing the business, and we strongly believe that with our current pipeline of orders, FTS can return to consistent growth, in terms of both profitability and revenues.”

“Our 2007 financial results have proven the strength of our management strategy. While comparable vendors have reported growth at any cost, often incurring heavy losses, the FTS conservative strategy resulted in profitability in 2007,” said Amos Sivan, the FTS Chief Executive Officer. “In line with this approach and following our track record of successful M&As in the past, we are now turning our focus to growth and examining potential mergers and acquisitions, based on our long term strategy of non-organic growth parallel to organic growth. We expect to continue on the path of strong, stable growth in the future, as we have an extensive pipeline and a consolidated roadmap of products and solutions.”

About FTS

FTS (LSE: FTS) is a leading provider of Business Control, Billing and CRM solutions for communications and content service providers. By analyzing events from a business standpoint rather than just billing them, FTS allows providers to better understand their customer base and leverage business value from every event and interaction. The firm deploys its full range of end-to-end, stand-alone and add-on solutions to customers in over 40 countries and has implemented solutions in wireless, wireline, cable, content and broadband markets including multiple cross-network installations. Serving the evolving needs of both traditional and next generation service providers, the company’s operations comprise four international R&D locations and strategically-located sales support offices worldwide.

FTS is one of EMEA’s fastest growing technology companies, consistently earning a place within the Deloitte Technology Fast-500 EMEA listing. In 2007, FTS was voted the ‘Most Promising Company’ at the prestigious TeleStrategies Billing and OSS World industry event.

For more information, please visit their website: http://www.fts-soft.com/.