Press Release: February 28, 2000

WR Hambrecht + Co Initiates Coverage of Tekelec (TKLC) with Market Outperform and Target of $60

Communications systems supplier projected to nearly double revenues by December 2001

SAN FRANCISCO CA , February 28, 2000—WR Hambrecht + Co, the online investment bank, today initiated research coverage on Tekelec (TKLC) with a Market Outperform, the firm’s highest rating, and a $60 price target. In his research report, WR Hambrecht + Co’s eNetwork Infrastructure analyst Tim Savageaux cited Tekelec’s attractive business model and revenue multiples well below its peer group as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"We believe Tekelec represents a reasonably-valued investment vehicle for investors to gain exposure to what may be the most prominent trend in communications infrastructure in 2000, namely the convergence of carrier voice and data networks and the migration of voice services from a circuit-based infrastructure to a cell/packet based infrastructure," Savageaux said.

The report projects Tekelec’s revenues will increase from $226.1 million in 1999 to $312.5 million in 2000 and $411.6 million in 2001.

Tekelec designs, manufactures, and markets innovative switching solutions and diagnostic systems for the global communications marketplace.