Portal Software Teams with SAP to Deliver Unprecedented Financial Control to Communications Service Providers

Portal Software, Inc. (Pink Sheets:PRSF), the premier globalprovider of billing and Revenue Management solutions fortelecommunications and media markets, today announced immediateavailability of an integrated financial solution that combines Portal7 Revenue Management with Revenue Management and contract accountingfunctionality from SAP's leading solution for the telecommunicationsindustry, SAP(R) for Telecommunications. The combined solution hasbeen designed to give greater financial control to communicationsservice providers, which will allow them to maximize their revenuestreams and quickly react to changing market conditions and customerrequirements. The announcement furthers an existing relationshipbetween the companies (see the related press release titled, "PortalSoftware and SAP Team to Deliver Revenue Management Solution to theTelecommunications Industry," available at:http://www.sap.com/Company/Press/Press.epx?PressID=2174&Query=Portal%20Software). (Due to its length, this URL may need to becopied/pasted into your Internet browser's address field. Remove theextra space if one exists.)

"The combined Portal and SAP integration will enable WorldSpace tooptimize its business processes and gain complete visibility acrossall financial and accounting functions," said Mike Berkely, CIO ofWorldSpace. "As a result, we will be able to provide our customerswith the best possible service while closely managing associated costsand revenues. We were impressed with the level of collaborationbetween the companies."

The new solution has received "Powered by SAP NetWeaver(R)"certification, which enables seamless integration of key revenue,rating, and billing capabilities of Portal 7 with the collections andaccounting functionality of SAP for Telecommunications.

"Consumer adoption of converged services has been both a greatopportunity and a great challenge for service providers," said BhaskarGorti, senior vice president of global sales, marketing, and alliancesfor Portal Software. "While the proliferation of these servicesprovides countless revenue opportunities, it is only through tightfinancial control that providers can reap the benefits. Portal and SAPhave delivered an integrated financial solution which will helpservice providers maximize their revenue streams and better navigatethis market."

By integrating critical financial processes that impact a serviceprovider's financial reporting, the solution should improve financialcontrol and visibility into credit limit management, accountsreceivable management, collections management, billing, paymentprocessing, and accounting. Service providers should benefit from:

-- Improved financial control

-- Reduced revenue leakage through improved visibility into
customer revenue relationships and tight credit limit
management

-- Reduced days sales outstanding (DSO) via efficient
management of collections and dispute processes

-- Consolidated general ledger which simplifies and increases
accuracy of financial reporting

-- Improved customer service

-- Quicker response to customer inquiries through real-time
invoice retrieval

-- More flexibility with additional payment options and
payment plans

-- Customer-centric view of Revenue Management and collection
processes

-- Reduced total cost of ownership (TCO)

-- Pre-delivered integration between the two solutions
significantly reduces implementation time and a service
provider's ongoing infrastructure costs

"The financial complexities of the telecommunications industryhave created a challenge for service providers to maintain solidcontrol of their revenues," said Harald Hinderer, VP and head of theindustry business unit for telecommunications and media, SAP AG."Revenue leakage caused by numerous factors, such as unbilledservices, uncollected revenue, and a lack of visibility into financialsystems, has resulted in losses of billions of dollars and issues incomplying with Sarbanes-Oxley and similar legislation for the industryas a whole. Our integrated solution will address these issues andprovide a great overall fit for our joint customers."

About Portal Software, Inc.

Portal is the leading worldwide provider of billing and RevenueManagement solutions for the global communications and media markets.The company delivers the only platform for the end-to-end managementof customer revenue across offerings, channels, and geographies.Portal's solutions enable companies to dramatically accelerate thelaunch of innovative, profit-rich services while significantlyreducing the costs associated with legacy billing systems. Portal isthe Revenue Management partner of choice to the world's leadingservice providers, including Vodafone, AOL Time Warner, DeutscheTelekom, Telstra, NTT, China Telecom, Reuters, China Mobile, TelenorMobil, and France Telecom.

Forward Looking Statement

Statements in this release regarding potential customerrelationships, the possibility of contracted services from Portal, andrealizing future financial gains are forward looking statements. Suchforward looking statements may not materialize and involve significantuncertainties and risks. These and other factors are described indetail in our Annual Report on Form 10-K for the fiscal year endedJanuary 31, 2004 and our quarterly reports on Form 10-Q. Allstatements made in this press release are made only as of the date setforth at the beginning of this release. Portal undertakes noobligation to update the information in this release in the eventfacts or circumstances subsequently change.

(C) 1996-2006. PORTAL and the PORTAL LOGO are trademarks orregistered trademarks in the United States and in other countries, allowned by Portal Software, Inc. or its subsidiaries. Marks or namesowned by other companies remain the property of their respectiveowners.