Markham, Ontario - (December 15, 2010) - Enghouse Systems Limited (TSX:ESL) today announced its fourth quarter (unaudited) and year end financial results for the period ended October 31, 2010.

Fourth quarter revenue was $27.4 million compared to $20.0 million reported in the fourth quarter of last year, an increase of 37%. Operating income was $6.2 million compared to $5.2 million in the prior year s fourth quarter, an increase of 20%. Net income for the fourth quarter was $3.4 million or $0.13 per diluted share compared to $2.6 million or $0.10 per diluted share in the fourth quarter of fiscal 2009.

For the fiscal year, revenue was $94.2 million compared to $78.4 million in the prior year, an increase of 20%, while operating income was $20.0 million compared to $15.6 million in the prior year, an increase of 28%. Net income for the fiscal year was $10.2 million or $0.40 per diluted share compared to $6.7 million or $0.27 per diluted share in the prior year. The increase in revenue in the quarter and fiscal year is attributable to stronger revenue and contributions from acquired operations, Telrex, Mettoni and Pulse Voice. Operating expenses increased to $45.6 million for the year compared to $36.8 million in the prior year as a result of incremental costs related to acquired operations. As has become the norm, revenue and operating costs were also impacted by the continued volatility of foreign exchange as outlined in the Management s Discussion and Analysis ( MD&A ) as filed on SEDAR.

The Company recorded non-cash amortization charges of $2.5 million in the quarter compared to $1.8 million in the prior year s fourth quarter. For the fiscal year, the Company reported amortization charges of $8.5 million compared to $7.3 million.

The Company generated operating cash flows of $18.6 million in the fiscal year, compared to $15.8 million in the prior fiscal year and closed the year with $78.3 million in cash and short-term investments. The Company was not active during the year in its normal course issuer buyback. The Company has spent $30.1 million in the fiscal year on acquisitions and $3.5 million on dividends. Enghouse continues to have no long-term debt.

Stephen Sadler, Chairman and Chief Executive Officer said We are pleased with our progress in the year, expanding our presence in Europe, integrating and aligning our product offering and growing our revenue while remaining focused on generating strong operating cash flows.

At its meeting held today, the Board of Directors authorized the payment of an eligible quarterly dividend of $0.04 per common share payable on February 28, 2011 to shareholders of record as at the close of business on February 14, 2011.

About Enghouse

Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of distinct vertical markets. Its strategy is to build a larger and more diverse software company through strategic acquisitions and managed growth. Enghouse shares are listed on the Toronto Stock Exchange under the symbol ESL . Further information about Enghouse may be obtained from the Company s web site at www.enghouse.com.