Comverse Technology plans exchange for convertible ZYPS

New York, Nov. 30 - Comverse Technology, Inc. said it has filed a registration statement with the Securities and Exchange Commission for an offer to exchange its outstanding contingent convertible senior notes in the Zero Yield Putable Securities (ZYPS) structure.

The Woodbury, N.Y., communications and information processing company will offer new ZYPS with identical terms except that it will pay cash up to the principal amount on conversion, with the remainder in stock, the call date will be pushed back to May 15, 2009 from May 15, 2008 and there will be an additional put for cash on May 15, 2009.

Comverse said the exchange is in response to the final decision by the Emerging Issues Task Force of the Financial Accounting Standards Board that companies must account for diluted earnings per share by including contingent convertible notes as if the notes were converted to common shares at the time of issuance. The company currently includes these potential shares only when the conversion triggers are reached.

Comverse intendes to complete the exchange by Jan. 31, 2005.

Lehman Brothers is dealer manager for the exchange offer. D.F. King & Co., Inc. is the information agent (800 758-5378).

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