NICE Systems Achieves Record Results for Third Quarter 2008

Non-GAAP highlights for third quarter 2008:

• Revenues up 23% to record $163.0 million, net income up 27% to record $26.7 million
• Continued operating leverage; operating margins reach 18.6%
• Record backlog, book-to bill greater than 1
• Strong growth in enterprise and security sectors
• Achieved strategic milestone with comprehensive security project surpassing $20 million

Ra’anana, Israel, November 12, 2008 - NICE Systems Ltd. (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract Insight from Interactions to drive performance, today announced results for the third quarter of 2008.

Third quarter 2008 non-GAAP revenue reached a record of $163.0 million, representing a 23% increase from $132.9 million in the third quarter of 2007.

Non-GAAP gross margin in the third quarter of 2008 reached 64.8%, or $105.6 million gross profit, up from 63.4%, or $84.3 million, in the third quarter of 2007.

Non-GAAP operating margin in the third quarter of 2008 reached a record 18.6%, compared with 17.1% in the third quarter 2007. Non-GAAP operating profit reached $30.3 million, up 33% from $22.7 million in the third quarter of 2007.

Third quarter 2008 non-GAAP net income increased 27% reaching $26.7 million, compared to $21.0 million in the third quarter of 2007. Non-GAAP earnings per fully diluted share were $0.43, up from $0.38 in the third quarter of 2007.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, stock based compensation expenses, loss on marketable securities, settlement and related expenses, as well as certain business combination accounting entries.

On a GAAP basis: Third quarter 2008 revenue was a record $162.5 million, an increase from $131.7 million in the third quarter of 2007. Third quarter 2008 gross margin was 61.7%, up from 60.6% in the third quarter of 2007; operating income was $16.1 million, up from $8.4 million in the third quarter of 2007; and third quarter 2008 net income was $10.9 million, or $0.18 per fully diluted share, up from $9.2 million, or $0.17 per fully diluted share, for the third quarter of 2007.

Total cash, cash equivalents, deposits and marketable securities as of September 30, 2008 were at a record $454.9 million, with no debt.

“Once again our advanced solutions portfolio, long term vision and experienced team enabled us to achieve record results prevalent throughout the third quarter, in both the enterprise and security sectors. Commercial and security organizations continue to turn to NICE as we enable them to tackle the issues on top of their business and security agenda. NICE enables businesses to protect and nurture their most valuable asset  -  their customer base. On the security side – NICE helps enhance safety and security around the world," commented Haim Shani, Chief Executive Officer of NICE. “When pairing our clear industry leadership with our robust financial position, we believe that the present economic environment creates many opportunities to further strengthen NICE's strong market position. Looking ahead, we expect to leverage these strong foundations to drive continued growth in 2009 and beyond."

Outlook for fourth quarter 2008:
Fourth quarter 2008 non-GAAP revenues are expected to be in the range of $161-$168 million, and non-GAAP EPS is expected to be in the range of $0.42–$0.49 per fully diluted share.

Conference Call
NICE will host a conference call to discuss the results and its business outlook today at 8:30 a.m. EST ( 15:30 Israel). Participants may access the conference call by dialing US toll-free + 1-888-668-9141 or +1-866-345-5855 ; international: +972-3-918-0610 ; Israel: 0 3- 918-0610 . The call will also be broadcast live on the internet via NICE's website at www.nice.com . A telephone replay will be available for up to 72 hours, starting from three hours after the call, by dialing one of the following numbers: US Toll-free: + 1-877-33 2 -1104 ; international: +972-3- 925-5900 ; Israel: 03-925-5900 .

The purpose of adjustments from GAAP to non-GAAP is to give an indication of our performance exclusive of non?cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non?GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non?GAAP financial measures may differ materially from the non?GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statement of Operations.

About NICE Systems
NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions solutions and value-added services, powered by the convergence of advanced analytics of unstructured multimedia content and transactional data – from telephony, web, email, radio, video, and other data sources. NICE’s solutions address the needs of the enterprise and security markets, enabling organizations to operate in an insightful and proactive manner, and take immediate action to improve business and operational performance and ensure safety and security. NICE has over 24,000 customers in more than 135 countries, including over 85 of the Fortune 100 companies. More information is available at http://www.nice.com .

Trademark Note: 360° View, Alpha, ACTIMIZE, Actimize logo, Customer Feedback, Dispatcher Assessment, Encorder, eNiceLink, Executive Connect, Executive Insight, FAST, FAST alpha Blue, FAST alpha Silver, FAST Video Security, Freedom, Freedom Connect, IEX, Interaction Capture Unit, Insight from Interactions, Investigator, Last Message Replay, Mirra, My Universe, NICE, NICE logo, NICE Analyzer, NiceCall, NiceCall Focus, NiceCLS, NICE Inform, NICE Learning, NiceLog, NICE Perform, NiceScreen, NICE SmartCenter, NICE Storage Center, NiceTrack, NiceUniverse, NiceUniverse Compact, NiceVision, NiceVision Alto, NiceVision Analytics, NiceVision ControlCenter, NiceVision Digital, NiceVision Harmony, NiceVision Mobile, NiceVision Net, NiceVision NVSAT, NiceVision Pro, Performix, Playback Organizer, Renaissance, Scenario Replay, ScreenSense, Tienna, TotalNet, TotalView, Universe, Wordnet are trademarks and/or registered trademarks of NICE Systems Ltd. All other trademarks are the property of their respective owners.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, pressure on pricing resulting from competition, and inability to maintain certain marketing and distribution arrangements, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission.