Portal Expands Relationship with Telefonica Moviles in Mexico; Portal to Provide Rating System for Leading Mexican Mobile Provider

Portal Software, Inc. (Pink Sheets:PRSF), the premierprovider of billing and Revenue Management solutions for globalcommunications and media markets, today announced that TelefonicaMoviles, one of Mexico's leading mobile service providers, has expanded its relationship with Portal to include a rating system forits GSM-CDMA based roaming services. In December of 2004, Portalannounced that Telefonica Moviles had selected Portal's RevenueManagement solution for its GSM network that provides value-addedservices for MMS, WAP, GPRS, SMS, and content. Telefonica Moviles isthe largest service provider in Latin America and the fourth largestservice provider worldwide. Portal also provides solutions toTelefonica in Argentina.

Telefonica Moviles, after extensive competitive analysis, selectedthe Portal solution to support the needs for the region due toPortal's branding, roaming, and multi-currency capabilities.Telefonica Moviles currently supports a million roaming events permonth and works with dozens of roaming partners throughout the region.

"Telefonica Moviles offers the best quality service for itscustomers. Portal has the commitment to provide us flexibility andcapabilities to support cross-promotions for a variety of customerprofiles, and also the ability to handle high volumes of CDRs andcustomer partners," said Carlos Valero, chief information officer ofTelefonica Moviles.

The new system will support incollect and outcollect roaming forCDMA1900, CDMA850, and GSM networks, CIBER 2.5 and TAP 3.10 formats,and interface the rating system to Telefonica Moviles' legacy system.In addition, the Portal Revenue Management solution will providestatistical customer analysis information to further enhanceTelefonica Moviles' customer management capabilities.

"Telefonica Moviles is continuing to pioneer new services andsolutions for its customers throughout the Caribbean and LatinAmerica," said Dave Labuda, president and CEO of Portal Software. "Weare pleased that our Revenue Management solution, now expanded toinclude roaming, will contribute to Telefonica Moviles' growth andprofitability throughout the region."

About Portal Software, Inc.

Portal is the premier provider of billing and Revenue Managementsolutions for the global communications and media markets. The companydelivers the only platform for the end-to-end management of customerrevenue across offerings, channels, and geographies. Portal'ssolutions enable companies to dramatically accelerate the launch ofinnovative, profit-rich services while significantly reducing thecosts associated with legacy billing systems. Portal is the RevenueManagement partner of choice to the world's leading service providers,including Vodafone, AOL Time Warner, Deutsche Telekom, TELUS, NTT,China Telecom, Reuters, Telstra, China Mobile, Telenor Mobil, andFrance Telecom.

Forward-Looking Statement

Statements in this release contain forward-looking statements thatinvolve uncertainties and risks. These and other factors are describedin detail 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.

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