Telelogic Signs 760,000 USD Contract with Leading North American Defense/Aerospace Company

MALMÖ, Sweden – July 3 , 2006 - Telelogic, (Stockholm Exchange: TLOG) the leading provider of software solutions that align advanced systems and software development with business objectives, today announced that it has signed a 760,000 USD agreement with a global leading North American producer of helicopters for the commercial and military markets. Of the deal value 560,000 USD is related to license and maintenance and 200,000 USD to services. The contract was signed June 30. Telelogic Rhapsody the leading UML, SysML, DoDAF-based Model-Driven Development (MDD) environment for embedded systems was chosen through an extensive proof of concept process to validate its high performance functionality and ease of use in a large complex environment versus competitive products. The implementation will replace existing competitive solutions. "Telelogic is very pleased to see not only yet another large global organization replacing competitor’s software with Telelogic’s solutions, but also continued success for Rhapsody as part of the Telelogic Group,” said Anders Lidbeck, president and CEO of Telelogic. ”This is another industry vote of confidence in our ability to deliver in the most demanding of environments.”