COMVERGE AND XANBOO FORM AN ALLIANCE EMPOWERING NORTH AMERICAN UTILITIES WITH ADVANCED ENERGY INTELLIGENCE SOLUTIONS FLORHAM PARK
 
 

February 14, 2007

Comverge Technologies, Inc., a subsidiary of Data Systems & Software Inc. (NASDAQ: DSSI), announced today that it has formed an exclusive alliance with Xanboo Incorporated, a technology innovator and creator of the premier smart home management system. Xanboo's investors include Motorola, Inc. (NYSE: MOT), Globespan Virata, Inc. (NASDAQ: GSPN) and Lantronix, Inc. (NASDAQ: LTRX). The Comverge/Xanboo alliance was created to offer the first end-to-end solution for advanced load curtailment, automated meter reading (AMR), local and remote video monitoring, and appliance/device control and diagnostics, to North America's electric, gas, and water utilities and their ultimate customers.

Comverge and Xanboo will jointly develop energy intelligence-related products. In addition, Comverge has been designated as Xanboo's exclusive seller/reseller of Home Automation and Monitoring devices to North American utilities. This new alliance combines proven Comverge technology, including the award winning Maingate™ price-responsive load curtailment and automated meter reading (AMR) solutions, with Xanboo's patented technology for controlling devices over the Internet in real time. For the first time, utilities can offer their commercial and residential customers an end-to-end product line of integrated, advanced services.

The comprehensive line of Xanboo wireless sensors, controls, and web video cameras, along with a broadband portal interface, enhances Comverge's Maingate™ two-way energy gateway services and is introduced as a new line of Comverge branded home automation products called, Maingate™ Lookouts.

Robert M. Chiste, Chief Executive Officer of Comverge, stated, "This agreement exemplifies our commitment to focus on and expand our Maingate™ interactive systems, while adding an extensive new revenue opportunity within the nascent, value-added market of ancillary services to our core utility markets. The addition of our new Maingate™ Lookouts product line further demonstrates Comverge's strategy of leveraging our broad existing customer base into new, high-growth, value-added revenue streams."

Bill Diamond, President of Xanboo, Inc., stated, "With deregulation continuing to shape and change the electric utility marketplace, utilities are searching for broadband services to increase customer satisfaction, maintain customer loyalty, and add new revenue streams. The completely modular aspect of the Comverge-Xanboo product offering enables utilities to offer a technology migration path from core AMR and load curtailment to an entire end-to-end home management system."

"The truly exciting thing," Diamond commented, "is that all of this technology is available immediately. This is not a positioning statement. These are real products that are award-winning, cost-effective, and ready to ship."

Chiste added, "Earlier this year, Comverge was named the most promising company at Energy Venture Fair II---a forum organized to bring emerging companies in the energy sector together with an audience of more than 300 professional investors, venture capitalists, equity partners, investment banks and utility companies. It's a great opportunity to be in an alliance with Xanboo, the company that won the same award last year at Energy Venture Fair I. Great things are sure to happen when two award-winning entrepreneurial companies come together to deliver high-quality, advanced energy intelligence solutions to utilities. Comverge continues to demonstrate its commitment to value creation for its customer base and investors."

About Maingate™ Lookouts.
Maingate™ Lookouts enable the utility's broadband customers to take advantage of remote video monitoring and device control for thermostats, lighting systems, pool heaters, sprinklers, door locks, garage doors, and other common household appliances. In addition, acoustic and water/flood sensors are currently available, with additional sensors to be developed. Utility customers have access to their own web interface account with historical data, so they can remotely monitor and manage their home's energy consumption and track their energy usage by date, by device, and over a specified period of time.

About Comverge
Comverge Technologies, Inc., The Power in Power Technology™, has more than 500 utility clients, accounting for over five million end-user devices, in 15 countries. Comverge has offices, research facilities, representatives and agents located worldwide. Comverge's End-to-End Energy Intelligence™ software suite, PowerCAMP™, combined with its field-proven hardware development and manufacturing expertise, enables scalable information infrastructures-custom-designed to meet the needs of today's innovative energy suppliers. Comverge Technologies group provides integrated, full-spectrum solutions for direct or voluntary load control programs, remote meter reading, price-responsive programs, time-of-use billing, distributed generation monitoring, theft/outage detection and more. Comverge Enterprises group provides innovative business solutions including owned and operated systems, negawatt power purchase agreements, and joint ventures. For more information visit www.comverge.com.

About Xanboo
Xanboo, Inc. offers the premier smart home management system with real-time video notification and device controls that enable users to control and monitor their homes or businesses, from anywhere in the world via the Internet. This technology enables a connection over the Internet via a gateway, PC or cable set top box, in the home or business. Xanboo designs and engineers all Xanboo Home Internet Management System hardware and software, including video cameras, sensors, and control devices. Xanboo is headquartered in New York City where its executive management team leads its marketing, sales, software and Web site design and engineering divisions.

About Data Systems & Software

In addition to the energy management solutions business conducted through Comverge, Data Systems & Software Inc. is a provider of computer consulting and development services, and is an authorized direct seller and value added reseller of computer hardware. Through its DSIT subsidiary, DSSI provides IT solutions. For additional information on DSSI, visit: www.dssiinc.com or www.nfnonline.com/dssi. For additional information on DSIT, visit www.dsi.co.il.

FOR MORE INFORMATION, CONTACT:
Comverge, Technologies, Inc.:
Sky Filippi, Director of Marketing
Tel: (973) 360-2220, x267,
email: filippi@comverge.com
website: www.comverge.com.

INVESTOR RELATIONS:
National Financial Network
Gary Geraci
Tel: (781) 644-3629 or (800) 343-4874
email:garyg@nfnonline.com
website: www.nfnonline.com/dssi

This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, which are subject to risks and uncertainties, including risks associated with (i) implementation by Comverge under its contract with Xanboo, Inc. (ii) conditions in the market for utility solutions, (iii) the marketing of Comverge's hardware and software products to utility customers and (iv) the pace and consequences of deregulation. Actual results may vary from those projected or implied by such forward-looking statements. The partnership announced in this release is not indicative of any future operating results of Comverge or DSSI. There is no assurance as to when, or whether, there will be any sales by Comverge of Maingate™ Lookouts to utilities. A more complete discussion of risks and uncertainties which may affect the accuracy of these statements and Comverge's business generally is included under the captions "Factors Which May Affect Future Results-Risks Related to the Utility Solutions Segment" and "Factors Which May Affect Future Results-General Factors" in DSSI's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.