RA'ANANA, Israel, March 30 /PRNewswire-FirstCall/ -- MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of business support systems (BSS)for comprehensive telecommunication management and customer care & billing (CC&B) solutions, today announced that it has filed its annual report with audited financial statements with the SEC reflecting revenues for the year ended December 31, 2006 of $10.5 million and a net loss of $2.25 million compared to revenues of $11 million and a net loss of $1.5 million as preliminarily reported in a press release on February 7, 2007.

The audited numbers reflect a write-off of $304,000 relating to a cancellation of a contract by a client in the Far East after the Company had performed its obligations under the contract. The Company believes that the contract cancellation was unfounded and intends to vigorously pursue its rights under the contract. In addition, an OEM amended its report of Q4 2006 installations of our software in their equipment, resulting in a reversal of $251,000 in revenues. The Company also established a $164,000 tax reserve and adjustment of deferred taxes that belong to prior years.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is a global provider of business support systems for comprehensive telecommunication management and customer care & billing solutions. MTS' business support system is a full-featured customized solution for telecommunications management, Interconnect and customer care & billing. Its telecommunications expense management solution is used by corporations and organizations to improve the efficiency and performance of all telecommunication and information technology operations, and to significantly reduce associated costs. Its service providers and carriers solutions are used to support sophisticated billing, web-based self-provisioning, partners management and interconnect billing.

Headquartered in Israel, MTS markets through wholly owned subsidiaries in the United States, Hong Kong, Holland, and Brazil, and through OEM partnerships with Siemens, Phillips, NEC and other vendors. MTS' shares are traded on the NASDAQ Capital Market (symbol MTSL). For more information please visit the MTS web site: http://www.mtsint.com/

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulations, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission.

Contacts: Company: Shlomi Hagai Corporate COO & CFO Tel: +972-9-762-1733 Email: shlomi.hagai@mtsint.com

CONTACT: Contacts: Company: Shlomi Hagai, Corporate COO & CFO, Tel:
+972-9-762-1733, Email: shlomi.hagai@mtsint.com