Mr. Steve Sadler reports

ENGHOUSE COMPLETES ACQUISITION OF SEACHANGE

Enghouse Systems Ltd. has completed its acquisition of substantially all of the assets of SeaChange International Inc. related to its IPTV product and service business, for a purchase price of approximately $23-million (U.S.) (after the deduction of SeaChange's cash and cash equivalents at the closing date). SeaChange's annual revenues are currently expected to be approximately $18-million (U.S.) (reflecting adjustments for the recent completion of a large low-margin custom contract, the end of life of one of SeaChange's products and certain other customer attritions).

SeaChange is a provider of streaming video services, cable TV broadcast platforms and advanced advertising insertion technology. The company provides its IPTV technology to operators, broadcasters and content owners worldwide to help them deliver the highest-quality video experience to consumers. Its StreamVid premium streaming product enables customers to cost-effectively launch and expand a direct-to-consumer service to manage, curate and monetize content, as well as form a direct relationship with subscribers, while SeaChange's advanced advertising platform helps to generate new video advertising revenues.

SeaChange will be integrated within Enghouse's asset management group, which includes its IPTV business.

"This acquisition increases the scale of our IPTV business, augments our product offering and furthers our expansion into the European market," said Steve Sadler, chairman and chief executive officer of Enghouse. "We are very pleased to welcome SeaChange's employees, customers and partners to Enghouse."

About Enghouse Systems Ltd.

Enghouse is a Canadian publicly traded company (Toronto Stock Exchange: ENGH) that provides vertically focused enterprise software solutions focusing primarily on contact centres, video communications, health care, education, telecommunications, public safety and the transit market. Enghouse has a two-pronged growth strategy that focuses on internal growth and acquisitions, which are financed through operating cash flows. The company is organized around two business segments: the interactive management group and the asset management group.