Exhibit 99.1

FOR IMMEDIATE RELEASE

Tekelec Announces Q3 2008 and Year to Date Results

• Q3 Revenues of $106.0 million, up 8% Year-Over-Year; YTD Revenues up 8%

• Q3 Orders of $87.4 million, down 20% Year-Over-Year; YTD Orders up 7%

• Q3 GAAP EPS of $0.13 per diluted share down 7% Year-Over-Year; YTD GAAP EPS per diluted share up 117%

• Q3 Non-GAAP EPS of $0.19 per diluted share (as reconciled below), up 6% Year-Over-Year; YTD Non-GAAP EPS up 49%

• Q3 Cash flow from Continuing Operations of $31.0 million and $87.9 million YTD

Morrisville, NC — November 3, 2008 — Tekelec (NASDAQ: TKLC ), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, today announced its results for the quarter and nine months ended September 30, 2008.

Results from Continuing Operations

Revenue from continuing operations for the third quarter of 2008 was $106.0 million, up 8% compared to $97.8 million for the third quarter of 2007. For the third quarter of 2008, the Company had orders of $87.4 million, down 20% compared to $109.2 million for the third quarter of 2007. Backlog from continuing operations as of September 30, 2008 was $369.0 million, down from $387.6 million at June 30, 2008.

On a GAAP basis, the Company reported income from continuing operations for the third quarter of 2008 of $8.6 million, or $0.13 per diluted share. This compares to income from continuing operations of $10.1 million, or $0.14 per diluted share, for the third quarter of 2007. On a non-GAAP basis, income from continuing operations for the third quarter of 2008 was $12.5 million, or $0.19 per diluted share, compared to income from continuing operations of $13.8 million, or $0.18 per diluted share, for the third quarter of 2007. Please refer to the attached financial statement schedules for a reconciliation of the Company’s non-GAAP financial measures and operating results to its GAAP financial measures and operating results.

For the first nine months of 2008, revenue from continuing operations was $340.7 million, up 8% compared to $316.6 million for the first nine months of 2007. For the first nine months of 2008, the Company had orders from continuing operations of $292.7 million, up 7% compared to $273.0 million for the first nine months of 2007.

On a GAAP basis, the Company reported income from continuing operations for the first nine months of 2008 of $35.8 million, or $0.52 per diluted share, which includes a one-time tax benefit of $3.7 million,

Corporate Office:   5200 Paramount Parkway, Morrisville, N.C. 27560 • Tel 919.460.5500 • Fax 919.460.0877

or $0.05 per diluted share, compared to income from continuing operations of $16.8 million, or $0.24 per diluted share, for the first nine months of 2007. On a non-GAAP basis, income from continuing operations for the first nine months of 2008 was $46.4 million, or $0.67 per diluted share, compared to income from continuing operations of $33.4 million, or $0.45 per diluted share, for the first nine months of 2007. Please refer to the attached financial statement schedules for a reconciliation of the Company’s non-GAAP financial measures and operating results to its GAAP financial measures and operating results.

GAAP operating margins were 14% and 5% for the nine months ended September 30, 2008 and 2007, respectively. Non-GAAP operating margins for the first nine months of 2008 were 19% as compared with 12% in the first nine months of 2007. Cash flows from continuing operations for the nine months ended September 30, 2008 were $87.9 million, up 229% compared to $26.7 million in the first nine months of 2007.

Frank Plastina, president and chief executive officer of Tekelec, stated “We were very pleased by our strong operating performance for the third quarter and first nine months of the year. Our revenues and operating margins continued to be strong and our operating cash flows for the third quarter were exceptional. While our new orders for the quarter were lower than anticipated, on a year to date basis our orders continue to be 7% ahead of last year. Our continued focus on sound execution in a difficult economic and competitive environment has led to a 19% non-GAAP operating margin year to date. ”

Consolidated Results, Including the Impact of Discontinued Operations

On a GAAP basis, the Company generated consolidated net income of $12.4 million, or $0.19 per diluted share, for the three months ended September 30, 2008, compared to net income for the three months ended September 30, 2007 of $12.5 million, or $0.17 per diluted share. For the nine months ended September 30, 2008, the Company generated consolidated net income on a GAAP basis of $41.2 million, or $0.60 per diluted share compared to a consolidated net loss of $45.7 million, or $0.64 loss per diluted share, in 2007.

Balance Sheet and Liquidity

Tekelec continues to have a strong balance sheet and liquidity, providing the Company with the financial resources and flexibility to help address potentially negative impacts resulting from the current economic environment and to further invest in our portfolio. Specifically, Tekelec’s consolidated cash, cash equivalents and short-term investments at September 30, 2008 totaled $228.6 million, up from $190.1 million at June 30, 2008, due primarily to the strong cash flows from operations for the quarter. Cash flows from continuing operations were $31.0 million for the third quarter of 2008 and were $87.9 million on a year-to-date basis. In addition, the Company recently announced that it had entered into a three-year $50 million revolving credit agreement with Wachovia Bank, providing additional flexibility and liquidity.

At September 30, 2008, the Company continued to hold $105.8 million of Student Loan Auction Rate Securities (“SLARS”) valued at fair value in accordance with FAS 115 and 157. This valuation reflects a cumulative decline in value of $5.0 million ($3.0 million net of tax) recorded in 2008. The decline in fair value is considered to be temporary and accordingly, the write-down is recorded in accumulated other comprehensive income (loss) within shareholders’ equity.

On October 31, 2008, Tekelec accepted an offer from UBS for auction rate securities rights related to these SLARS. Under the terms of the UBS rights, UBS has the right, at its discretion, to purchase these securities at par plus accrued interest at any time until July 2, 2012 and Tekelec has the right to require UBS to purchase the securities at par plus accrued interest at its election at any time between June 30, 2010 and July 2, 2012. We will continue to classify these SLARS as long-term investments until we believe that we are within twelve months of a liquidity event.

Total deferred revenues were $211.7 million at September 30, 2008, up from $192.1 million at June 30, 2008.

Conference Call

Tekelec has scheduled a conference call for Monday, November 3, 2008, for management to discuss results for the third quarter and first nine months of 2008. The Company also plans to provide on its web site immediately prior to the call both GAAP and non-GAAP financial measures (including GAAP reconciliations) for the third quarter and to discuss during this call certain forward-looking information concerning the Company’s prospects for 2008.

“Live” Webcast and Replay

Tekelec will host a live webcast of its conference call on Monday, November 3, 2008, at 4:45 p.m. EST. To access the webcast, visit Tekelec’s web site located at www.tekelec.com, enter the Investor Relations section and click on the webcast icon. A webcast replay will be available at approximately 7:45 p.m. on November 3^rd, and for 90 days thereafter.

Telephone Replay

A telephone replay of the call will also be available for one week after the live webcast by calling either (800) 642-1687 or (706) 645-9291, and entering the conference ID #69500400.

Non-GAAP Information

Certain non-GAAP financial measures are included in this press release, including non-GAAP income from continuing operations, non-GAAP earnings per share, non-GAAP operating margins and a full non-GAAP statement of operations. In the calculation of these measures, Tekelec generally excludes certain items such as amortization of acquired intangibles, restructuring and other charges, non-cash stock-based compensation charges, acquisition-related charges, and unusual, non-recurring gains and charges. Tekelec believes that excluding such items provides investors and management with a representation of the Company’s core operating performance and with information useful in assessing its prospects for the future and underlying trends in Tekelec’s operating expenditures and continuing operations. Management uses such non-GAAP measures and the related non-GAAP statements of operations to (i) evaluate financial results, (ii) manage the Company’s operations, and (iii) establish operational goals. Further, each of the individual non-GAAP measures within the non-GAAP statement of operations and the non-GAAP statement of operations itself are utilized by the Company’s management and board of directors to determine incentive compensation and evaluate key trends within the business. In addition, since the Company has historically reported non-GAAP measures to the investment community, the Company believes the inclusion of this information provides consistency in our financial reporting. The attachments to this release provide a reconciliation of each of the non-GAAP measures, including the full non-GAAP statement of operations, referred to in this release to the most directly comparable GAAP measure. The non-GAAP financial measures are not meant to be considered as substitutes for the corresponding GAAP financial measures.

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release are forward looking, reflect the Company’s current intent, belief or expectations and involve certain risks and uncertainties. The Company’s actual future performance may differ materially from such expectations as a result of important risk factors, which include, in addition to those identified in the Company’s 2007 Form 10-K, First Quarter 2008 Form 10-Q, Second Quarter 2008 Form 10-Q and its other filings with the Securities and Exchange Commission, the effect of the current economic crisis on overall telecommunications spending by our customers, further changes in general economic conditions and unexpected changes in economic, social, or political conditions in the countries in which we operate, the timeliness and functional competitiveness of our product releases, our ability to maintain OEM, partner, and vendor support and supply relationships, our ability to compete with other manufacturers that have lower cost bases than ours and/or are partially subsidized by foreign governments or employ other unfair trade practices, changes in the market price of the Company’s common stock and reductions in telecommunications carrier capital spending. The

Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

About Tekelec

Tekelec leverages its global leadership in core multimedia session control and network intelligence to ensure scalable, secure and highly available communications. The Company’s leading signaling solutions enable the interworking of different network applications, technologies and protocols, providing a smooth transition to next-generation networks. Corporate headquarters are located near Research Triangle Park in Morrisville, N.C., U.S.A., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.

Tekelec Investor Contact:
Joanne Latham, Director of Corporate Communications
Joanne.Latham@tekelec.com
+1 919.653.9655

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ⁽¹⁾

	Three Months Ended September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
				(Thousands, except per share data)
Revenues	$	105,996		$	97,797		$	340,661		$	316,574
Cost of sales:
Cost of goods sold		33,775			33,367			116,113			132,043
Amortization of purchased technology		587			587			1,761			1,766
Total cost of sales		34,362			33,954			117,874			133,809
Gross profit		71,634			63,843			222,787			182,765
Operating expenses:
Research and development		25,082			22,762			75,706			69,033
Sales and marketing		18,159			16,662			55,269			53,636
General and administrative		13,272			12,354			40,477			40,148
Restructuring and other		—			2,291			243			4,802
Acquired in-process research and development		—			—			2,690			—
Amortization of intangible assets		109			46			327			140
Total operating expenses		56,622			54,115			174,712			167,759
Income from operations		15,012			9,728			48,075			15,006
Other income (expense), net:
Interest income		1,749			4,411			7,325			12,706
Interest expense		(9	)		(903	)		(1,920	)		(2,754	)
Gain (loss) on sale of investments		—			—			(2	)		223
Other, net		(2,193	)		(1,144	)		(3,699	)		(2,988	)
Total other income (expense), net		(453	)		2,364			1,704			7,187
Income from continuing operations before provision for income taxes		14,559			12,092			49,779			22,193
Provision for income taxes		5,941			2,033			13,980			5,361
Income from continuing operations		8,618			10,059			35,799			16,832
Income (loss) from discontinued operations, net of taxes		3,755			2,444			5,373			(62,575	)
Net income (loss)	$	12,373		$	12,503		$	41,172		$	(45,743	)
Earnings per share from continuing operations:
Basic	$	0.13		$	0.14		$	0.54		$	0.24
Diluted		0.13			0.14			0.52			0.24
Earnings (loss) per share from discontinued operations:
Basic	$	0.06		$	0.03		$	0.08		$	(0.90	)
Diluted		0.06			0.03			0.08			(0.88	)
Earnings (loss) per share:
Basic	$	0.19		$	0.18		$	0.62		$	(0.65	)
Diluted		0.19			0.17			0.60			(0.64	)
Weighted average number of shares outstanding-continuing operations:
Basic		65,961			70,830			66,372			69,894
Diluted		66,763			77,829			70,972			70,956
Weighted average number of shares outstanding:
Basic		65,961			70,830			66,372			69,894
Diluted		66,763			77,829			70,972			70,956

(1) We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The accompanying Unaudited Condensed Consolidated Statements of Operations are for the thirteen and thirty-nine weeks ended September 26, 2008 and September 28, 2007.

TEKELEC
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS FOR CONTINUING OPERATIONS ^(1),(3)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2008			2007		2008		2007
				(Thousands, except per share data)
Revenues	$	105,996		$	97,797	$	340,661	$	316,574
Cost of sales:
Cost of goods sold		33,486			33,002		115,123		125,755
Gross profit		72,510			64,795		225,538		190,819
Research and development		24,451			22,272		73,486		66,826
Sales and marketing		17,414			15,803		53,098		50,967
General and administrative		11,465			10,708		34,386		33,514
Total operating expenses		53,330			48,783		160,970		151,307
Income from operations		19,180			16,012		64,568		39,512
Interest and other income (expense), net		(453	)		2,364		1,704		7,187
Income from continuing operations before provision for income taxes		18,727			18,376		66,272		46,699
Provision for income taxes (2)		6,263			4,615		19,852		13,320
Net income from continuing operations	$	12,464		$	13,761	$	46,420	$	33,379
Earnings per share:
Basic	$	0.19		$	0.19	$	0.70	$	0.48
Diluted		0.19			0.18		0.67		0.45
Weighted average number of shares outstanding:
Basic		65,961			70,830		66,372		69,894
Diluted		66,763			77,829		70,972		77,317

(1)	Please refer to the attached reconciliations of the GAAP Statements of Operations to the above Non-GAAP Statements of Operations.
(2)	The above Non-GAAP Statements of Operations assume non-GAAP effective income tax rates of 33% and 25% for the three months ended September 30, 2008 and 2007, respectively. The above Non-GAAP Statements of Operations assume non-GAAP effective income tax rates of 30% and 29% for the nine months ended September 30, 2008 and 2007, respectively.
(3)	We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The accompanying Unaudited Non-GAAP Statements of Operations are for the thirteen and thirty-nine weeks ended September 26, 2008 and September 28, 2007.

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2008			2007
	(Thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	228,631		$	105,550
Short-term investments, at fair value		—			313,922
Total cash, cash equivalents and short-term investments		228,631			419,472
Accounts receivable, net		156,500			147,092
Inventories		25,467			20,543
Income taxes receivable		—			28,361
Deferred income taxes		42,053			18,793
Deferred costs and prepaid commissions		56,084			57,203
Prepaid expenses and other current assets		8,298			14,726
Total current assets		517,033			706,190
Long-term investments, at fair value		105,793			—
Property and equipment, net		35,092			32,510
Investments in privately-held companies		22,297			18,553
Deferred income taxes, net		70,026			83,418
Other assets		1,414			1,320
Goodwill		22,951			22,951
Intangible assets, net		14,860			16,948
Total assets	$	789,466		$	881,890
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	25,253		$	45,388
Accrued expenses		23,327			21,259
Accrued compensation and related expenses		31,499			40,234
Current portion of deferred revenues		203,678			166,274
Income taxes payable		4,739			—
Convertible debt		—			125,000
Liabilities of discontinued operations		805			5,767
Total current liabilities		289,301			403,922
Deferred income taxes		1,067			1,295
Long-term portion of deferred revenues		7,976			8,917
Other long-term liabilities		6,097			6,569
Total liabilities		304,441			420,703
Commitments and Contingencies
Shareholders’ equity:
Common stock, without par value, 200,000,000 shares authorized; 66,077,663 and 67,479,916 shares issued and outstanding, respectively		305,815			319,761
Retained earnings		180,551			139,379
Accumulated other comprehensive income (loss)		(1,341	)		2,047
Total shareholders’ equity		485,025			461,187
Total liabilities and shareholders’ equity	$	789,466		$	881,890

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months ended September 30,
	2008			2007
	(Thousands)
Cash flows from operating activities:
Net income (loss)	$	41,172		$	(45,743	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss (income) from discontinued operations		(5,373	)		62,575
Loss (gain) on sale of investments		2			(223	)
Loss on disposal of fixed assets		503			—
Provision for (recovery of) doubtful accounts and returns		(84	)		(65	)
Inventory write downs		4,640			8,626
Depreciation		13,148			11,524
Amortization of intangibles		2,088			1,899
Amortization, other		754			1,325
Acquired in-process research and development		2,690			—
Deferred income taxes		(8,974	)		2,647
Stock-based compensation		9,769			12,086
Excess tax benefits from stock-based compensation		(1,528	)		(4,172	)
Changes in operating assets and liabilities, net of business disposal:
Accounts receivable		(9,706	)		22,755
Inventories		(9,170	)		(3,224	)
Deferred costs		1,119			5,419
Prepaid expenses and other current assets		5,309			14,309
Accounts payable		(19,995	)		(7,243	)
Accrued expenses		1,717			(13,193	)
Accrued compensation and related expenses		(10,029	)		(9,241	)
Deferred revenues		37,283			(42,450	)
Income taxes payable/receivable		32,628			9,127
Other Assets		(101	)		—
Total adjustments		46,690			72,481
Net cash provided by operating activities — continuing operations		87,862			26,738
Net cash used in operating activities — discontinued operations		(2,472	)		(18,565	)
Net cash provided by operating activities		85,390			8,173
Cash flows from investing activities:
Proceeds from sales and maturities of investments		787,784			487,399
Purchases of investments		(584,524	)		(486,912	)
Purchases of property and equipment		(15,666	)		(13,916	)
Other non-operating assets		—			175
Payments related to acquired in-process research and development		(2,690	)		—
Net cash provided by (used in) investing activities — continuing operations		184,904			(13,254	)
Net cash used in investing activities — discontinued operations		—			(3,241	)
Net cash provided by (used in) investing activities		184,904			(16,495	)
Cash flows from financing activities:
Repayment of convertible debt		(125,000	)		—
Payments for repurchase of common stock		(33,779	)		(19,699	)
Proceeds from issuance of common stock		11,559			29,421
Excess tax benefits from stock-based compensation		1,528			4,172
Net cash provided by (used in) financing activities		(145,692	)		13,894
Effect of exchange rate changes on cash		(1,521	)		1,527
Net change in cash and cash equivalents		123,081			7,099
Cash and cash equivalents, beginning of period		105,550			45,329
Cash and cash equivalents, end of period	$	228,631		$	52,428

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED IMPACT OF NON-GAAP ADJUSTMENTS ⁽⁶⁾

	Three Months Ended September 30, 2008
	GAAP						Non-GAAP
	Continuing						Continuing
	Operations			Adjustments			Operations
Revenues	$	105,996		$	—		$	105,996
Cost of sales:
Cost of goods sold		33,775			(289	) (1)		33,486
Amortization of purchased technology		587			(587	) (2)		—
Total cost of sales		34,362			(876	)		33,486
Gross profit		71,634			876			72,510
Operating Expenses:
Research and development		25,082			(411	) (1)		24,451
					(220	) (3)
Sales and marketing		18,159			(745	) (1)		17,414
General and administrative		13,272			(1,807	) (1)		11,465
Amortization of intangible assets		109			(109	) (2)		—
Total operating expenses		56,622			(3,292	)		53,330
Income from operations		15,012			4,168			19,180
Interest and other income (expense), net		(453	)		—			(453	)
Income from continuing operations before provision for income taxes		14,559			4,168			18,727
Provision for income taxes		5,941			322	(4)		6,263
Income from continuing operations		8,618			3,846			12,464
Income from discontinued operations, net of taxes		3,755			(3,755	) (5)		—
Net income	$	12,373		$	91		$	12,464
Earnings per share from continuing operations:
Basic	$	0.13					$	0.19
Diluted		0.13						0.19
Earnings per share:
Basic	$	0.19					$	0.19
Diluted		0.19						0.19
Weighted average number of shares outstanding:
Basic		65,961						65,961
Diluted		66,763						66,763

(1)	The adjustments represent stock-based compensation expense recognized related to awards of stock options, restricted stock or restricted stock units and stock appreciation rights granted under our equity incentive plans and stock purchase rights granted under our employee stock purchase plan.
(2)	The adjustments represent the amortization of purchased technology and other intangibles related to the acquisitions of Steleus and iptelorg.
(3)	The adjustment represents consideration payable to Estacado that is contingent upon the continued employment of certain former Estacado employees by Tekelec.
(4)	The adjustment represents the income tax effect of footnotes (1), (2) and (3) in order to reflect our non-GAAP effective tax rate of 33%.
(5)	The adjustment represents the elimination of our discontinued operations.
(6)	We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The above schedule of Unaudited Impact of Non-GAAP Adjustments is for the thirteen weeks ended September 26, 2008.

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED IMPACT OF NON-GAAP ADJUSTMENTS ⁽¹⁰⁾

	Nine Months Ended September 30, 2008
	GAAP					Non-GAAP
	Continuing					Continuing
	Operations		Adjustments			Operations
Revenues	$	340,661	$	—		$	340,661
Cost of sales:
Cost of goods sold		116,113		(990	) (1)		115,123
Amortization of purchased technology		1,761		(1,761	) (2)		—
Total cost of sales		117,874		(2,751	)		115,123
Gross profit		222,787		2,751			225,538
Operating Expenses:
Research and development		75,706		(1,633	) (1)		73,486
				(587	) (3)
Sales and marketing		55,269		(2,171	) (1)		53,098
General and administrative		40,477		(5,191	) (1)		34,386
				(900	) (4)
Acquired in-process research and development		2,690		(2,690	) (5)		—
Restructuring and other		243		(459	) (6)		—
				216	(1),(6)
Amortization of intangible assets		327		(327	) (2)		—
Total operating expenses		174,712		(13,742	)		160,970
Income from operations		48,075		16,493			64,568
Interest and other income, net		1,704		—			1,704
Income from continuing operations before provision for income taxes		49,779		16,493			66,272
Provision for income taxes		13,980		5,872	(7)		19,852
Income from continuing operations		35,799		10,621			46,420
Income from discontinued operations, net of taxes		5,373		(5,373	) (8)		—
Net income	$	41,172	$	5,248		$	46,420
Earnings per share from continuing operations:
Basic	$	0.54				$	0.70
Diluted (9)		0.52					0.67
Earnings per share:
Basic	$	0.62				$	0.70
Diluted (9)		0.60					0.67
Weighted average number of shares outstanding:
Basic		66,372					66,372
Diluted (9)		70,972					70,972

(1)	The adjustments represent stock-based compensation expense recognized related to awards of stock options, restricted stock or restricted stock units and stock appreciation rights granted under our equity incentive plans and stock purchase rights granted under our employee stock purchase plan.
(2)	The adjustments represent the amortization of purchased technology and other intangibles related to the acquisitions of Steleus and iptelorg.
(3)	The adjustment represents consideration payable to Estacado that is contingent upon the continued employment of certain former Estacado employees by Tekelec.
(4)	The adjustment represents an arbitration award and associated legal fees in favor of our former President and CEO, Fred Lax.
(5)	The adjustment represents acquired in-process research and development related to the Estacado purchase.
(6)	The adjustment represents the elimination of costs incurred during 2008 related to our initiating a plan to centralize certain functions in our EAAA region and changes in estimates related to our 2007 realignment activities.
(7)	The adjustment represents the income tax effect of excluding second quarter discrete tax benefits totaling $3.7 million related to reversing a valuation allowance on deferred tax assets generated by the loss on sale of our former Switching Solutions Group. Also included in the adjustment is the income tax effect of footnotes (1), (2), (3), (4), (5) and (6) in order to reflect our non-GAAP effective tax rate of 30%.
(8)	The adjustment represents the elimination of our discontinued operations.
(9)	For the nine months ended September 30, 2008, the calculations of diluted earnings per share include a potential add-back to net income of $1,085,000 for assumed after-tax interest cost and 3,961,000 weighted average shares related our previously outstanding convertible debt using the “if-converted” method.
(10)	We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The above schedule of Unaudited Impact of Non-GAAP Adjustments for the thirty-nine weeks ended September 26, 2008.

TEKELEC

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED IMPACT OF NON-GAAP ADJUSTMENTS ⁽⁷⁾

	Three Months Ended September 30, 2007
	GAAP					Non-GAAP
	Continuing					Continuing
	Operations		Adjustments			Operations
Revenues	$	97,797	$	—		$	97,797
Cost of sales:
Cost of goods sold		33,367		(365	) (1)		33,002
Amortization of purchased technology		587		(587	) (2)		—
Total cost of sales		33,954		(952	)		33,002
Gross profit		63,843		952			64,795
Operating Expenses:
Research and development		22,762		(490	) (1)		22,272
Sales and marketing		16,662		(859	) (1)		15,803
General and administrative		12,354		(1,646	) (1)		10,708
Restructuring and other		2,291		(2,291	) (3)		—
Amortization of intangible assets		46		(46	) (2)		—
Total operating expenses		54,115		(5,332	)		48,783
Income from operations		9,728		6,284			16,012
Interest and other income, net		2,364		—			2,364
Income from continuing operations before provision for income taxes		12,092		6,284			18,376
Provision for income taxes		2,033		2,582	(4)		4,615
Income from continuing operations		10,059		3,702			13,761
Income from discontinued operations, net of taxes		2,444		(2,444	) (5)		—
Net income	$	12,503	$	1,258		$	13,761
Earnings per share from continuing operations:
Basic	$	0.14				$	0.19
Diluted (6)		0.14					0.18
Earnings per share:
Basic	$	0.18				$	0.19
Diluted (6)		0.17					0.18
Weighted average number of shares outstanding:
Basic		70,830					70,830
Diluted (6)		77,829					77,829

(1)	The adjustments represent stock-based compensation expense recognized related to awards of stock options, restricted stock or restricted stock units and stock appreciation rights granted under our equity incentive plans and stock purchase rights granted under our employee stock purchase plan.
(2)	The adjustments represent the amortization of purchased technology and other intangibles related to the acquisitions of Steleus and iptelorg.
(3)	The adjustment represents the eliminations of the costs associated with our restructuring activities.
(4)	The adjustment represents the income tax effect of footnotes (1), (2) and (3) in order to reflect our non-GAAP effective tax rate of 25%.
(5)	The adjustment represents the elimination of our discontinued operations.
(6)	For the three months ended September 30, 2007, the calculations of diluted earnings per share includes a potential add-back to net income of $581,000 for assumed after-tax interest cost and 6,361,000 weighted average shares related to our previously outstanding convertible debt using the “if-converted” method.
(7)	We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The above schedule of Unaudited Impact of Non-GAAP Adjustments for the thirteen weeks ended September 28, 2007.

TEKELEC
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED IMPACT OF NON-GAAP ADJUSTMENTS ⁽⁹⁾

	Nine Months Ended September 30, 2007
	GAAP						Non-GAAP
	Continuing						Continuing
	Operations			Adjustments			Operations
Revenues	$	316,574		$	—		$	316,574
Cost of sales:
Cost of goods sold		132,043			(1,288	) (1)		125,755
					(5,000	) (2)
Amortization of purchased technology		1,766			(1,766	) (3)		—
Total cost of sales		133,809			(8,054	)		125,755
Gross profit		182,765			8,054			190,819
Operating Expenses:
Research and development		69,033			(2,207	) (1)		66,826
Sales and marketing		53,636			(2,669	) (1)		50,967
General and administrative		40,148			(5,922	) (1)		33,514
					(712	) (4)
Restructuring and other		4,802			(4,802	) (5)		—
Amortization of intangible assets		140			(140	) (3)		—
Total operating expenses		167,759			(16,452	)		151,307
Income from operations		15,006			24,506			39,512
Interest and other income, net		7,187			—			7,187
Income from continuing operations before provision for income taxes		22,193			24,506			46,699
Provision for income taxes		5,361			7,959	(6)		13,320
Income from continuing operations		16,832			16,547			33,379
Loss from discontinued operations, net of taxes		(62,575	)		62,575	(7)		—
Net income (loss)	$	(45,743	)	$	79,122		$	33,379
Earnings per share from continuing operations:
Basic	$	0.24					$	0.48
Diluted (8)		0.24						0.45
Earnings (loss) per share:
Basic	$	(0.65	)				$	0.48
Diluted (8)		(0.64	)					0.45
Weighted average number of shares outstanding:
Basic		69,894						69,894
Diluted (8)		70,956						77,317

(1)	The adjustments represent stock-based compensation expense recognized related to awards of stock options, restricted stock or restricted stock units and stock appreciation rights granted under our equity incentive plans and stock purchase rights granted under our employee stock purchase plan.
(2)	The adjustments represent the charge associated with product credits issued to Bouygues Telecom, S.A. as part of our settlement of the Bouygues litigation.
(3)	The adjustments represent the amortization of purchased technology and other intangibles related to the acquisitions of Steleus and iptelorg.
(4)	The adjustment represents legal expenses incurred to settle the Bouygues litigation.
(5)	The adjustment represents the eliminations of the costs associated with our restructuring activities.
(6)	The adjustment represents the income tax effect of footnotes (1), (2), (3), (4) and (5) in order to reflect our non-GAAP effective tax rate of 29%.
(7)	The adjustment represents the elimination of our discontinued operations.
(8)	For the nine months ended September 30, 2007, the calculations of diluted earnings per share related to GAAP Continuing Operations exclude a potential add-back to net income of $1,743,000 for assumed after-tax interest cost and 6,361,000 weighted average shares related to our previously outstanding convertible debt using the “if-converted” method as the effect of including such amounts is anti-dilutive. The calculation of diluted earnings per share related to non-GAAP Continuing Operations includes the add-back to net income of $1,743,000 for assumed after-tax interest cost and 6,361,000 weighted average shares related to our previously outstanding convertible debt using the “if-converted” method.
(9)	We operate under a thirteen-week calendar quarter. For financial statement presentation purposes, the reporting periods are referred to as ended on the last day of the calendar quarter. The above schedule of Unaudited Impact of Non-GAAP Adjustments is for the thirty-nine weeks ended September 28, 2007.