Merced Systems Receives INTERNET TELEPHONY® Magazine's 10th Annual Product of the Year Award

Merced Performance Suite Recognized for Outstanding Innovation for 2nd Straight

Redwood Shores, CA, January 2, 2008— Merced Systems announced today that Technology Marketing Corporation's (TMC® ) INTERNET TELEPHONY magazine, a VoIP Authority Since 1998™, has named Merced Performance Suite as a recipient of its 2007 Product of the Year Award.

Merced Performance Suite is the market leading performance management application helping customer operations transform their businesses into higher-performing, data-driven organizations. More specifically, Merced Performance Suite makes use of data to define and clarify goals, deliver information to all users in the organization, measure performance, and drive action to improve business results. Merced Performance Suite Global Edition, the market leading international performance management application, is the only solution available that delivers content in multiple languages within a single installation, allowing multi-national customers to serve content to all geographies and ensure the right language is served to the right set of users.

"Merced Systems has proven they are committed to quality and excellence while addressing real needs in the marketplace. INTERNET TELEPHONY is pleased to present Merced Systems with a 2007 Product of the Year Award for Merced Performance Suite," said Rich Tehrani, TMC President and Editor-in-Chief of INTERNET TELEPHONY magazine. "We're proud to honor their hard work and accomplishments and look forward to more innovative solutions from Merced Systems in the future."

"It is an honor to be acknowledged by INTERNET TELEPHONY magazine and TMC for Merced Performance Suite's product excellence," said Mark Selcow , president of Merced Systems. "We produce best in class applications and solutions, and by focusing on the needs of our customers, we are able to provide the most impactful product on the market."

A full list of Product of the Year winners will be published in the February, 2008 issue of INTERNET TELEPHONY magazine. (www.itmag.com)

For more information about TMC, please visit www.tmcnet.com.

About INTERNET TELEPHONY magazine
INTERNET TELEPHONY has been the VoIP Authority since 1998™. Since the first issue in February of 1998, INTERNET TELEPHONY magazine has been providing unbiased views of the complicated converged communications space. INTERNET TELEPHONY offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs. INTERNET TELEPHONY magazine has a circulation of 225,000 including pass-along readers. For more information, please visit www.itmag.com.

About TMC
Technology Marketing Corporation (TMC) publishes Customer Interaction Solutions , INTERNET TELEPHONY ,Unified Communications , and IMS Magazine. TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. Ranked in the top 6,000 most visited Web sites in the world by alexa.com*, TMCnet serves as many as three million unique visitors each month. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. In addition, TMC produces INTERNET TELEPHONY Conference & EXPO, and Call Center 2.0 Conference. For more information about TMC, visit www.tmcnet.com. (*alexa.com is an amazon.com company that ranks Web sites by their traffic levels. Neither alexa.com nor amazon.com is affiliated with TMCnet.) For more information about TMC, visit www.tmcnet.com.

About Merced
Merced Systems is the leading provider of customer operations performance management applications to contact centers, sales, field service, and back-office operations. Merced Systems' award winning products serve Fortune 100 and smaller customers in a variety of different industries including Banking, Brokerage, Insurance, Consumer Credit, Telecommunications, Healthcare, High Technology and Consumer Goods. With integrated dashboards, reports, analytics, workflow, and data integration, over 200,000 people worldwide use Merced Systems' products to drive performance improvement in their customer operations. A privately held venture capital based company based in Redwood City , CA. Merced Systems has grown profitably for the past 5 years. For more information on Merced Systems, please visit www.mercedsystems.com.

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