BEZEQ INTERNATIONAL GAINS BY MTS' INTERCONNECT BILLING

    - LARGEST CARRIER IN ISRAEL USING THE MTS INTERCONNECT BILLING SOLUTION
               TO MANAGE ITS INTERCONNECT PARTNER RELATIONSHIPS -

RA'ANANA, ISRAEL - JANUARY 9, 2007 - MTS - MER TELEMANAGEMENT SOLUTIONS LTD.
(NASDAQ CAPITAL MARKET: MTSL), a global provider of operations support systems
(OSS) and customer care and billing (CC&B) solutions, announced that Bezeq
International, a subsidiary of Bezeq, the largest telecommunications carrier in
Israel, has been using MTS' interconnect billing solution to manage its
interconnect partner relationships.

Mrs. Osnat Cohen the Manager of Internal Applications of Bezeq International
stated: "Bezeq International determined that it required an Interconnect Billing
solution that would support its increasing business growth. We conducted an
extensive search and analysis of the various systems available and chose the
MTS' interconnect solution because it fully addresses our current and future
needs, and also because of its superior technology and future forward
innovations. The MTS interconnect billing solution allows us to manage all our
interconnect partners and agreements; handle all the daily activities, providing
for the fast and accurate reconciliation of accounts with our worldwide
partners. Using the MTS interconnect billing solution, we have reduced our
operational expenses while increasing our data integrity, providing us a
platform to improve relationships with our partners and leverage our business
opportunities." Mr. Nissan Arie, V.P Global Businesses further added, "The MTS
interconnect billing solution has increased our revenue by creating a new
wholesale business of providing interconnect services to other service providers
across the globe."

The interconnect billing solution is able to manage an unlimited number of
contracts according to flexible and dynamically defined rating schemes. The MTS
solution enables a carrier to manage its relationships with interconnect
partners, from documenting and monitoring contracts to supporting all types of
agreements, including hubbing, wholesale, bilateral, transit and custom
agreements. This sophisticated system combines streamlining the entire invoicing
process with the automation of such processes as destination rate loading,
hubbing and wholesale rate determination and partner transaction reconciliation.

Eytan Bar, President and Chief Executive Officer of MTS commented: "The
determination by Bezeq International to utilize our solution reflects the
increased demand we are seeing for our billing solutions from carriers and
service providers around the world who recognize the strength and advantage of
the MTS billing platforms. Our solutions are modular in design, accommodating
the needs of all carriers and service providers regardless of size. A
significant advantage of the MTS interconnect billing solution is its automatic
resolution capability, which enables carriers and service providers to
troubleshoot issues associated with "leakage" and/or faulty billing
discrepancies, which have been major problems in the past."

The MTS interconnect billing solution can be installed as part of a converged
solution or as a standalone module.

ABOUT MTS

Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative
solutions for comprehensive telecommunications expense management (TEM) used by
enterprises, and for business support systems used by information and
telecommunication service providers. MTS' TEM solutions assist and empower
thousands of enterprises and organizations to make smarter choices with their
telecom dollars at each stage of the service lifecycle including, allocation of
cost, proactive budget control, fraud detection, processing of payments,
forecasting spending, and more. Our solutions support our clients on an ongoing
basis with both sophisticated software applications and a variety of managed
services relationship models.

MTS' converged solutions for Information and Telecommunication Service Providers
are successfully implemented worldwide by wireless, VoIP, IPTV, and content
service providers. Our converged solutions include charging and invoicing
customers, interconnect billing, and partner revenue management using pre-pay
and post-pay schemes. MTS pre-configured solutions are easily implemented and
are sold at competitive prices.

Headquartered in Israel, MTS markets its solutions through wholly owned
subsidiaries in the United States, Hong Kong, Holland, and Brazil, and through
OEM partnerships with Siemens, Phillips, NEC and other vendors. MTS' shares are
traded on the NASDAQ Capital Market (symbol MTSL).

For more information please visit the MTS web site: www.mtsint.com

CERTAIN MATTERS DISCUSSED IN THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS
THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO,
RISKS IN PRODUCT DEVELOPMENT PLANS AND SCHEDULES, RAPID TECHNOLOGICAL CHANGE,
CHANGES AND DELAYS IN PRODUCT APPROVAL AND INTRODUCTION, CUSTOMER ACCEPTANCE OF
NEW PRODUCTS, THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING, MARKET ACCEPTANCE,
THE LENGTHY SALES CYCLE, PROPRIETARY RIGHTS OF THE COMPANY AND ITS COMPETITORS,
RISK OF OPERATIONS IN ISRAEL, GOVERNMENT REGULATIONS, DEPENDENCE ON THIRD
PARTIES TO MANUFACTURE PRODUCTS, GENERAL ECONOMIC CONDITIONS AND OTHER RISK
FACTORS DETAILED IN THE COMPANY'S FILINGS WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Mr. Shlomi Hagai
Corporate COO & CFO
MTS - MER Telemanagement Solutions
Tel: +972-9762-1733
Email: Shlomi.Hagai@mtsint.com