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U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-K



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(Mark One)



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



For the fiscal year ended December 31, 2003



OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|- | --------------------------------------------------------------------------------------------



For the transition period from  to



COMMISSION FILE NUMBER 333-88168-01

333-88168



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SYNIVERSE HOLDINGS, LLC

SYNIVERSE TECHNOLOGIES, INC.

(Exact
name of registrant as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 30-0041664                          
|Delaware                                                       |  | 06-1262301                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



One Tampa City
Center, Suite 700

Tampa, Fl 33602

(Address of principal executive office)

(Zip code)



(813) 273-3000

(Registrants telephone number, including area code)



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Securities registered under Section 12(b) of the
Exchange Act: None



Securities registered under Section
12(g) of the Exchange Act: None



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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No ̈



Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
10-K.  x



Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x



As of March 26, 2004, there were 2,000 shares of Syniverse Technologies, Inc.s no par value common stock outstanding, which are owned of record by Syniverse Holdings, Inc., a company that is wholly owned by
Syniverse Holdings, LLC.



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SYNIVERSE HOLDINGS, LLC

SYNIVERSE TECHNOLOGIES, INC.

FORM 10-K

FOR THE YEAR ENDED DECEMBER 31, 2003

TABLE OF CONTENTS



|              |  |                                                                                                              |  |     
|------------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|              |  |                                                                                                              |  | Page
|PART I       
|Item 1.       |  | Business                                                                                                     |  | 3   
|Item 2.       |  | Properties                                                                                                   |  | 18  
|Item 3.       |  | Legal Proceedings                                                                                            |  | 18  
|Item 4        |  | Submission of Matters to a Vote of Security Holders                                                          |  | 19  
|             
|PART II      
|              |  |                                                                                                             
|Item 5.       |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 19  
|Item 6.       |  | Selected Consolidated Financial Data                                                                         |  | 19  
|Item 7.       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  | 23  
|Item 7A       |  | Quantitative and Qualitative Disclosures about Market Risk                                                   |  | 38  
|Item 8.       |  | Financial Statements and Supplementary Data                                                                  |  | 38  
|Item 9.       |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                         |  | 38  
|Item 9A       |  | Controls and Procedures                                                                                      |  | 38  
|             
|PART III     
|              |  |                                                                                                             
|Item 10.      |  | Directors and Executive Officers of the Registrant                                                           |  | 39  
|Item 11.      |  | Executive Compensation                                                                                       |  | 42  
|Item 12.      |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  | 48  
|Item 13.      |  | Certain Relationships and Related Transactions                                                               |  | 50  
|Item 14.      |  | Principal Accountant Fees and Services                                                                       |  | 56  
|             
|PART IV      
|              |  |                                                                                                             
|Item 15.      |  | Exhibits, Financial Statement Schedules and Reports on Form 8-K                                              |  | 57  
|              | 
|Signatures    |  | 102                                                                                                         
|              | 
|Exhibit Index |  | 104                                                                                                         



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PART 1



ITEM 1. BUSINESS



Overview



We are a global communications technology company specializing in innovative
business and network engineering solutions that manage and interconnect voice and data systems throughout the world. Our services include transaction-based, network, number portability, technology interoperability, call processing and other
outsourcing services that simplify the interconnection and management of complex voice and data networks. We address technology interoperability complexities as the largest clearinghouse in the United States for the billing and settlement of
wireless roaming telephone calls, with an estimated market share of approximately 60% in 2003 based on wireless subscribers. We also own one of the largest unaffiliated Signaling System 7 (SS7) networks in the United States. SS7 is the
telecommunication industrys standard network signaling protocol used by nearly all carriers to enable the setup and delivery of wireless and wireline telephone calls. Our network services also allow our customers to access intelligent network
services and monitor network performance and subscriber activity on a real-time basis. In addition, we are the industrys leading developer and provider of call processing solutions that enable seamless regional, national and international
wireless roaming telephone service. We are the leading provider of wireless local number portability (WLNP) in the United States, having developed and launched the wireless industrys only end-to-end solution for wireless carriers. Our full
suite of products addresses pre-provisioning of subscribers, intercarrier communication necessary for actual porting to a new carrier, and porting failures, known as fallout. Our solutions are offered as either service bureau or turnkey, providing
flexibility for carriers and creating a significant recurring revenue stream for us. We have dominant market share for WLNP based on contracts with five of the top six U.S. carriers, representing 92% of the available intercarrier communications
service bureau customers, and 70% of the inter-carrier communications clearinghouse market.



Effective March 1, 2004 we changed our corporate name. TSI Telecommunication Holdings LLC became Syniverse Holdings, LLC and TSI Telecommunication Services Inc. became Syniverse Technologies, Inc. In addition, our
other subsidiaries also changed their names on this date as follows: TSI Telecommunication Holdings Inc. to Syniverse Holdings, Inc.; TSI Finance Company to Syniverse Finance, Inc.; TSI Telecommunication Networks Inc. to Syniverse Networks, Inc.;
TSI Telecommunication Services, BV to Syniverse Technologies, BV; and TSI Brience, LLC to Syniverse Brience, LLC.



Industry Trends



Demand for our services is driven primarily by the number of wireless telephone subscribers, the volume of wireless roaming telephone calls, government
mandated changes within the telecommunications industry and the increasing technological complexities associated with the proliferation of different communication standards and protocols within telecommunication networks worldwide. The number of
U.S. wireless subscribers has grown from 16 million in 1993 to 158 million in 2003, according to the Cellular Telecommunications and Internet Association (CTIA). The U.S. wireless subscriber base is expected to grow to 185 million by 2007 according
to the Telecommunications Industry Association (TIA). According to the TIA and Wilkofsky Gruen Associates, wireless is the fastest growing segment of the telecommunications industry. In 2002, the worldwide wireless subscriber base expanded by 6.3
percent to 905 million, with the largest number of subscribers, 417 million, in Asia Pacific, followed by Western Europe at 308 million (TIA). In conjunction with the projected growth in the number of U.S. and worldwide wireless subscribers, we
believe the annual number of billable wireless roaming telephone calls will also continue to increase. Growth in wireless subscribers and wireless roaming telephone calls has been driven by improved wireless service quality, decreased cost of
service and increased wireless telephone service coverage both in the U.S. and abroad. Wireless telephone service coverage has increased due to the build out of networks in new and existing markets and increased roaming arrangements among carriers
that allow subscribers of one carrier to use another carriers network while traveling out of the subscribers home market.



These developments have been accompanied by increased technological complexities associated with the proliferation of different network architectures,
including various mobile switch types (e.g., Lucent, Nortel, Ericsson and Motorola), diverse signaling standards (e.g., CDMA, TDMA GSM, iDEN, 1xRTT, Wi-Fi), distinct billing record formats (e.g., CIBER, TAP and RADIUS) and multiple network protocols
(e.g., X.25, Frame Relay, SS7 and IP). Despite these complexities, wireless carriers are required to provide seamless regional, national and international wireless telephone service coverage in order to attract and retain subscribers. We expect
these complexities to increase as wireless carriers introduce new network technologies to enable wireless messaging, data, e-commerce and Wi-Fi access.



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The federal mandate requiring carriers to offer WLNP by November 24, 2004 was an added complexity to the
wireless industry. The implementation of WLNP impacts nearly every system within a carriers operations, including network signaling and routing, switching, billing, point of sale systems and customer service procedures and systems. The Federal
Communications Commission (FCC) mandate, which allows customers to change their telecommunication service provider while keeping their existing telephone number, recommends wireless carriers to change or port and activate a
customers service within 2.5 business hours of the initial customer request. Commencing November 24, 2003, wireless operators in the top 100 markets in the United States had to offer full portability throughout their networks, including the
ability to support roaming. Second and third tier markets must offer portability by May 24, 2004. To port numbers, carriers need to exchange information with other carriers and transmit information to the regional Number Portability Administration
Centers (NPACs). The business and technical impacts of this mandate present significant opportunities for us to assist these carriers in both the implementation and the ongoing service, since these WLNP technical solutions are not generally viewed
as a core competency of carriers.



These technological
challenges have made revenue assurance, cost management and delivery of quality service increasingly difficult for carriers. As a result, we believe wireless carriers will increasingly utilize trusted third-party service providers, such as us, that
offer outsourced solutions to assist in the management of interoperability, network, number portability and call processing complexities. We believe we offer the most comprehensive and advanced suite of services to meet these carriers needs.
Our proven capabilities position us well to continue developing innovative solutions to enhance the technological advantages of our services and meet the industrys evolving requirements.



Services



We provide a diverse set of services to meet the evolving requirements of the telecommunications industry. These services
include:



| |  | Network Services. We provide our customers with connectivity to our SS7 network and other widely used communications networks (e.g., X.25, Frame Relay and IP). SS7 is the
telecommunication industrys standard network signaling protocol used by almost every carrier in North America to enable the setup and delivery of wireless and wireline telephone calls. A telephone call has two components: the call content
(e.g., voice, video or data) and the signaling information (e.g., caller information, number called and subscriber validation). SS7 is the transport network for this signaling information. We also provide Web-based analysis and reporting services,
allowing our customers to access real-time subscriber activity, monitor their networks, troubleshoot customer care issues and handle network management tasks seamlessly. In addition, use of our SS7 network facilitates access to intelligent network
services, such as local number portability (LNP), line information database (LIDB), toll-free database and caller name. We also offer software and services that enable secure application and mobile data communication across multiple devices,
software platforms, and networks. Mobile Processing Server (MPS) is an integrated software design and development environment for building mobile solutions that provide a compelling user experience across multiple devices.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Services. The Telecommunications Act of 1996 mandates number portability as a means to promote competition for phone service. Number portability means that a
subscriber can switch telephone service provider but retain the existing telephone number. Wireline carriers in the largest markets have offered number portability since 1998. After numerous delays and postponements, wireless carriers in the top 100
markets were required to offer WLNP as of November 24, 2003. The implementation of WLNP fundamentally changed the way the wireless industry identifies phone numbers and routes calls. Additionally, porting a number from one carrier to another is an
exceedingly complex process that minimally requires eleven transactions or exchanges of information between carriers and between carriers and the NPAC. Furthermore, the method for porting a wireline number to a wireless phone is not
standardized. We developed the industrys only end-to-end, fully integrated suite of services to enable wireless carriers to meet the FCC-mandated November 2003 deadline for WLNP. Our suite of WLNP services address inter-carrier communication,
communication with the NPAC and system and help desk troubleshooting that is necessary when ports fail, known as fallout. Similarly, we have contracts to provide this same WLNP services to other carriers as they strive to meet the May
2004 deadlines for the secondary and tertiary markets.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Services. We address technology interoperability complexities by acting as the primary point of contact for hundreds of wireless carriers for the
processing of roaming billing, short message service (SMS), and multi-media messaging (MMS) transactions across substantially all network, signaling, billing and messaging standards.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  | Call Processing Services. We offer telecommunication carriers comprehensive call processing services that employ advanced technologies to provide subscriber verification,
call delivery and technical fraud detection and prevention regardless of switch type, billing format or signaling standard.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services. We provide other value-added outsourcing services including a telematics solution that enables trucking and distribution companies to track
vehicle location and improve fleet utilization, and outsourced services that enhance carriers ability to manage and consolidate billing for their enterprise customer accounts.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Our revenues are primarily generated from transaction-based processing fees.
These fees are based on the number of roaming calls/events, the number of automatic, periodic electronic signals sent over our network to locate and track subscribers, number portability transactions and database dips, and the number of call detail
and billing records cleared. Each time a mobile phone user turns on their phone, a transaction is generated. Further use of the phone to place or receive calls or to use specialized services generates transactions for which we can charge the
wireless service provider.



In addition, we earn fixed monthly
fees for network connections, principally to our SS7 network, as well as circuit and port fees. To a lesser extent, we also earn implementation fees such as those related to the WLNP implementation services.



Customers



We serve more than 290 customers including telecommunication service providers, wireline carriers, content developers and
enterprises worldwide. Our customer base includes all of the top ten wireless carriers in the United States, including AT&T Wireless, Cingular Wireless, Sprint PCS, Verizon Wireless, and Nextel. We also serve wireless companies in Latin America,
Asia Pacific and Europe, including, among others, China Unicom, Vodaphone Japan, NTT DoCoMo, T-Mobile International, Telstra, Telefónica, and Telcel. In addition, we provide services to wireline providers such as competitive local exchange
carriers, local exchange carriers and interexchange carriers. We have a revenue guaranty agreement with respect to revenues from our largest customer, Verizon Wireless. See Certain Relationships and Related Transactions.



Competitive Strengths



We believe that the following strengths will allow us to continue to enhance our revenues, our operating profitability and
cash flow:



| |  | Market leader in wireless technology interoperability and call processing. We believe that we offer the most comprehensive and advanced suite of technology interoperability
and call processing services to the telecommunication industry. Our technology interoperability services are designed to allow seamless communications between wireless carriers regardless of the communication standards and protocols deployed on
their networks. We are the largest wireless clearinghouse in the United States, processing nearly 60% based on wireless subscribers. Wireless clearing and financial settlement support has been a core service offering since our inception and has
allowed us to develop trusted third-party relationships with many telecommunication service providers by securely accessing and managing their proprietary subscriber and network data. In addition, we developed many of the wireless industrys
first and leading call processing solutions that enable wireless customers to make and receive calls while roaming regionally, nationally or internationally.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Market leader in wireless number portability. We are the leading provider of WLNP in the United States, having developed and launched the wireless industrys only
end-to-end solution for wireless carriers. Our full suite of products addresses pre-provisioning of subscribers, intercarrier communication necessary for actual porting to a new carrier, and porting failures, known as fallout. Our solutions are
offered as either service bureau or turnkey, providing flexibility for carriers and creating a significant recurring revenue stream for us. We have dominant market share for WLNP based on contracts with five of the top six U.S. carriers,
representing 92% of the available intercarrier communications service bureau customers, and 70% of the inter-carrier communications clearinghouse market.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Premier SS7 network provider. We own and operate one of the largest unaffiliated SS7 networks in North America and provide complementary intelligent network and network
monitoring services to telecommunication and data network providers. As a single SS7 and intelligent network services source, we provide our customers cost-effective connectivity to the signaling networks of substantially the entire U.S.
public-switched telecommunication network, connectivity to international gateways as well as an array of network-enabled services. We believe our SS7 services will continue to grow as carriers as well as enterprise customers increasingly outsource
SS7 network connectivity, management and monitoring. We believe this outsourcing trend by carriers is
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | and will continue to be driven by the significant capital required to build a national SS7 network, the cost of providing the required connectivity to all
the major domestic SS7 network providers and the technical expertise required to manage the network. Additionally, demand continues to grow for the ancillary services that the SS7 network supports, such as advanced calling features.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Strong customer relationships. Historically, we have experienced minimal customer turnover with contract renewal rates averaging approximately 88% over the last three years.
We serve more than 290 telecommunication service providers worldwide. We currently serve all of the top ten wireless carriers in the United States and provide services to a variety of wireline providers. We also have a highly active and respected
customer users group, which consists of representatives from over 200 customers including AT&T Wireless, Cingular Wireless, Sprint PCS, Verizon Wireless and Nextel. The Syniverse Users Group allows customers to play a significant
role in the development, enhancement and evaluation of our services through regular meetings. Interaction with this group reduces our research and development expenses and speeds new product development, enhancement and market introduction.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | History of innovative product development. We have built our business and reputation by continually identifying new opportunities in the telecommunication marketplace and
designing comprehensive solutions that meet carriers evolving technology interoperability, network and call processing needs. Our history includes the development of (i) the first automatic roaming call delivery service (Follow Me Roaming),
(ii) the first online roaming subscriber monitoring and support system for the industry (Visibility), (iii) the first commercial fraud profiler (FraudX), (iv) the first seamless international roaming solution (UniRoam), (v) our own proprietary IS-41
call processor and (vi) the first nationwide telematics application (OnStar). Most recently, we developed the industrys only end-to-end integrated WLNP suite of services. In addition, we are recognized as a leader in defining and developing
industry standards through our work with organizations such as the CTIA, GSM Association (GSMA), CDMA Development Group (CDG) and CIBERNET. For example, we were one of the primary leaders within the GSMA in developing its globally deployed uniform
billing standard, TAP3. More recent innovations include the development of a comprehensive suite of services to implement and manage WLNP including service order administration, inter-carrier communications, fallout management, work flow management
and porting center management and administration.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Proven business model. We offer mission-critical business and network engineering solutions that manage and interconnect voice and data systems in 26 countries throughout
North America, Central and Latin America, Asia Pacific and Europe through a service bureau model that provides us with a strong base of recurring revenues and cash flows. We believe that the cost, time and potential disruption incurred by a customer
in moving to a competitors service offering are significant, further strengthening the stability of our revenue base.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Positioned to capitalize on emerging communication industry technologies. We believe the introduction of 2.5G and 3G wireless services (i.e., EDGE, GPRS, wCDMA, CDMA2000 and
1xRTT) will increase the technological complexity of wireless networks and increase the demand for our suite of services. We also believe that our market leadership, strong customer relationships and technical expertise position us well to
capitalize both on next generation networks and emerging mobile data technology complexities. In addition, as one of the largest providers of outsourced SS7 and intelligent network services in the United States, we are strategically positioned to
provide services to traditional wireless and wireline telecommunication providers, as well as Internet Protocol-based (IP-based) service providers who must access existing public-switched telecommunication networks to serve and expand their customer
base. Likewise, we are well positioned to provide consultation and services to new entrants to the telecom market such as Internet content and application developers and wireless local area network (WLAN) providers.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Business Strategy



We intend to continue to strengthen our market leadership position, maximize profitability and enhance cash flow through the
following strategies:



| |  | Further penetrate our existing customer base. We intend to continue to aggressively market our current suite of services to our existing customers in order to further
diversify our revenue stream and increase per customer revenues. We believe there are significant opportunities to cross-sell our services and further penetrate our existing customers. Many of our customers purchase multiple services from us, but
they do not currently purchase all of our available services.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  | Enhance existing services suite through continued development. We intend to continue addressing customer needs and drive industry standards with industry-leading innovations
that enhance the technological advantage of our services. One of our strengths is the technological sophistication and functionality of our services. We take a collaborative approach to service development, leveraging our strong customer
relationships as well as our central role in information exchange and problem definition within the wireless industry to continue to meet the demands of our customer base.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Develop innovative new services. We are dedicated to understanding the requirements of our customer base and developing innovative new services to meet the industrys
evolving network, number portability, technology interoperability, and call processing needs. Throughout our history, we have been successful in identifying and developing mission-critical solutions for carriers. Through our relationships, ongoing
dialogue with customers and participation in various industry organizations, we believe we will continue to identify emerging carrier technology complexities. We believe that our proven internal capabilities position us well to develop innovative
services to respond to and solve these industry needs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Capitalize on near-term opportunity in the emerging mobile data market. We are well positioned to capitalize on the emerging mobile data market. Our private IP data service,
Inpack, provides connectivity between carriers to allow roaming GSM subscribers to access their home carriers data services. Our Message Manager and Multi-Media Service interoperability solutions enables network access, protocol translation
and conversion, routing and delivery of SMS and MMS across carrier networks. Our Event Manager solution addresses clearing and financial settlement for IP-based events such as messaging, m-commerce, mobile financial information services and
transactions and Internet content.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Demand is growing for mobile, high-speed access to the Internet, corporate intranet and other data applications while traveling. Virtual workspaces are being deployed in airports,
hotels, cafés and home offices by wireless Internet service providers (WISPs) in these venues. To meet the demand for this type of wireless connectivity, operators must supplement their networks with wireless local area network (WLAN) or
Wi-Fi access. Our suite of Wi-Fi services addresses the interoperability and business needs associated with this rapidly emerging service. We believe all of these services will help carriers solve the complexities that arise from the
deployment of new wireless data technologies.



| |  | Penetrate global markets. The number of global wireless subscribers is expected to grow from 1.3 billion in 2003 to over 2.2 billion by 2005, according to the market research
firm EMC (London). We are pursuing additional expansion opportunities in markets outside of North America that we believe will experience high growth and consequently have physically located sales and technical support personnel in Europe and Asia
Pacific and are targeting opportunities in Central and Latin America, Europe and Asia/Pacific. In February 2003, we opened an office in The Netherlands that is headed by a managing director with a sales and business development staff. The
acquisition of Softwright in December 2003 provides us with in-region technical support and development capabilities. We have developed customer relationships with China Unicom, NTT DoCoMo, Hutchison, T-Mobile International, Telefónica and
Telstra, among others, many of whom own additional properties throughout the world. Demand for our services globally is driven by carriers needs to interconnect national and regional networks to facilitate international wireless roaming and
financial clearing and settlement. In addition, complications arising from geographic variations in switch software, message routing standards, network transport and signaling protocols create opportunities to leverage our strong capabilities.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Expand customer base. We seek to expand our customer base by targeting new telecommunication carriers, as well as customers outside of the traditional wireless and wireline
telecommunication services industry. We believe that our separation from Verizon Communications Inc. may allow us to sell additional services to existing customers and to new customers that are Verizon competitors that may have been concerned that
using our services would benefit Verizon. In addition, the convergence of traditional telecommunication networks and IP networks has increased communications complexities and expanded the number of market participants, which include Internet service
providers (ISPs), WISPs, content providers, enterprises, mobile virtual network operators (MVNOs) and IP telephony providers. We expect that many of these new market participants will use our technology interoperability, network and call processing
services.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Opportunistically acquire complementary businesses. We will explore the possibility of acquiring companies that possess complementary service offerings, technologies and/or
customer relationships both in the U.S. and internationally. Through these types of acquisitions, we believe we can broaden our market reach, increase our service offering and enhance our ability to continue providing industry-leading solutions to
our customers.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Industry Overview



Wireless Industry



The first wireless carriers in the United States built out their wireless networks by purchasing licenses for analog spectrum and deploying networks on a
regional basis. Since then the number of domestic wireless carriers has grown significantly to include hundreds of domestic wireless carriers. In order to improve the quality and decrease the cost of wireless services, carriers introduced new
technologies, including second generation (2G) digital air-interface protocols (e.g., TDMA, CDMA and GSM). The significant growth in wireless subscribers and wireless calls has driven our growth and we believe this trend will continue. The number of
U.S. wireless subscribers has grown from 16 million in 1993 to 158 million in 2003, according to the Cellular Telecommunications and Internet Association (CTIA). The U.S. wireless subscriber base is expected to grow to 185 million by 2007 according
to the Telecommunications Industry Association (TIA). According to the TIA and Wilkofsky Gruen Associates, wireless is the fastest growing segment of the telecommunications industry. In 2002, the worldwide wireless subscriber base expanded by 6.3
percent to 905 million, with the largest number of subscribers, 417 million, in Asia Pacific, followed by Western Europe at 308 million. The introduction of 3G services over the next four years is expected to push worldwide growth rates into the
double digits. (TIA)



With the introduction by carriers of 2.5G
and 3G services, we expect that the technological and business complexities of the wireless industry will continue to increase. These complexities will be compounded by the introduction of new technologies (e.g., wCDMA, CDMA2000, EDGE, GPRS and
1xRTT), the inclusion of new industry participants (e.g., MVNOs, content providers, advertisers and enterprises) and the introduction of new and advanced services (e.g., m-commerce, SMS, mobile data, location, security, privacy and gateway
functions). Interoperability providers like us will be needed to ensure that legacy systems communicate with emerging technologies. We believe that we are well positioned to continue developing innovative solutions that address these increasing
complexities by utilizing our broad base of technological skills and our well-established reputation within the telecommunication industry.



An added complexity to the wireless industry is the federal mandate requiring carriers to offer WLNP. The implementation of WLNP impacts nearly every
system within a carriers operations, including network signaling and routing, switch upgrades, billing, point of sale and customer service. The Federal Communications Commission (FCC) mandate, which allows customers to change their
telecommunications service provider while keeping their existing telephone number, recommends wireless carriers to change or port and activate a customers service within 2.5 business hours of the initial customer request. Beginning
November 24, 2003, wireless operators in the top 100 U.S. markets had to offer full portability throughout their networks, including the ability to support roaming. In order to port numbers, carriers need to exchange information with other carriers
and transmit information to the regional NPACs. Second and third tier markets must comply with the mandate beginning on May 24, 2004. The business and technical impacts of this mandate present significant revenue opportunities for us, as the
implementation and management of WLNP technical solutions is not a core competency of carriers.



Network Services



SS7 is the telecommunication industrys standard network signaling protocol used by substantially all telecommunication carriers to enable the setup
and delivery of telephone calls. A telephone call has two components: the call content (e.g., voice, video or data), and the signaling information (e.g., caller information, number called and subscriber validation). The signaling information is
transmitted through the SS7 network, parallel to the call networks, thereby eliminating the need to tie up bandwidth on the call network. Specifically, an SS7 network, which can be comprised of hundreds of network links, identifies available call
network routes and designates the circuits and switches to be used for each call. This allows the SS7 network to identify the best call routes for connections, to efficiently manage the telephone networks and to generate transaction records for
billing and measurement. In addition, use of an SS7 network facilitates access to intelligent network services (e.g., LNP, LIDB, toll-free database and Caller ID). By using our Web-based analysis and reporting services, carriers also have access to
our proprietary analysis and reporting services which enable real-time monitoring and management of their networks and troubleshooting of customer care issues.



The increasing demand for the transmission of data requires wireless carriers to support packet-switched communications protocols including IP and
General Packet Radio Service (GPRS) in addition to their legacy circuit-switched telecommunication networks. GPRS roaming enables subscribers to access their GPRS-based wireless data services (e.g., public Internet, corporate intranets, e-mail and
m-commerce) while abroad or beyond the reach of their home network. We believe that we are well positioned, primarily due to our Inpack service offering, to benefit from the growth in the transmission of this type of data traffic.



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Number Porting Services



The Telecommunications Act of 1996 mandates number portability as a means to promote competition for phone service. Number
portability means that a subscriber can switch telephone service provider but retain the existing telephone number. Wireline carriers in the largest markets have offered number portability since 1998. After numerous delays and postponements,
wireless carriers were required to offer WLNP as of November 24, 2003. The implementation of WLNP fundamentally changed the way the wireless industry identifies phone numbers and routes calls. Additionally, porting a number from one carrier to
another is an exceedingly complex process that minimally requires eleven transactions or exchanges of information between carriers and between carriers and the NPAC. Furthermore, the method for porting a wireline number to a wireless
phone is not standardized. We developed the industrys only end-to-end, fully integrated suite of services to enable wireless carriers to meet the FCC-mandated November 2003 deadline for WLNP. Our suite of WLNP services address inter-carrier
communication, communication with the NPAC and system and help desk troubleshooting that is necessary when ports fail, known as fallout.



Technology Interoperability



Growth in wireless subscribers and wireless calls has been driven by improved wireless service quality, decreased costs of service and increased wireless
telephone coverage. Wireless telephone coverage has increased due to the build out of networks in new and existing markets and increased roaming arrangements among carriers. The increasing importance to carriers of roaming revenue, the continuing
growth in roaming transactions and the necessity for seamless regional, national and international service coverage have made revenue assurance, cost management and delivery of quality service increasingly important for carriers. In order to
minimize these complexities, and due to the proprietary nature of subscriber billing and activity data, carriers require a trusted third party to act as the primary contact for the processing of roaming, billing and SMS transactions across
substantially all network, signaling and billing standards. We believe we are well positioned to capitalize on expected continued growth in the number of wireless roaming telephone calls and SMS messages.



Call Processing



Improvements in air interface protocols have been accompanied by increasing
complexities associated with varying network architectures, including various mobile switch types (e.g., Lucent, Nortel, Ericsson and Motorola), diverse signaling standards (e.g., CDMA, TDMA and GSM), distinct billing record formats (e.g., CIBER and
TAP) and multiple billing applications. This multiplicity of technologies may require wireless carriers to use a trusted third party to manage certain functions such as (i) identifying and validating a subscriber when roaming, (ii) obtaining
permission from a host carrier to deliver a call, (iii) detecting and preventing fraudulent calls, (iv) providing seamless regional, national and international roaming capabilities, (v) ensuring roamers have the same services when roaming as they do
in their home market and (vi) ensuring the call is billed appropriately. These services require extensive table-driven data management. Market forces, switch upgrades and WLNP are causing carriers in the U.S. to migrate from using a third party for
call processing to establishing direct SS7 connectivity. As a result, we are experiencing a migration to SS7 and a decrease in call processing revenues.



Outsourcing



We believe that carriers will continue to outsource to trusted third parties certain operational functions that would require technical expertise and
significant capital to implement in-house. We believe that many wireless carriers currently are capital constrained and are focused primarily on operational issues that most directly affect revenue and subscriber growth. These issues include
increasing network capacity, integrating recent acquisitions, reducing customer churn, increasing ARPU and introducing data services. Billing system consolidation, technology interoperability and SS7 networks affect a small percentage of a
carriers total cost base but can cause significant customer service disruption. We believe that carriers will be reluctant to switch providers or concentrate their strategic focus and capital spending in these areas. In addition, due to the
proprietary nature of subscriber billing data, carriers will continue to require a trusted third-party intermediary to provide clearinghouse services in a secure and confidential manner.



History



Our company has been a leading provider of technology interoperability, network and call processing services to the telecommunication industry for more
than 15 years. Founded in 1987 as GTE Telecommunication Services Inc., a unit of GTE, our business has grown from a set of three roaming facilitation products into a comprehensive suite of services that address the increasing complexities of the
telecommunication industry. With our strong technical expertise, we have developed leading solutions to address many of the wireless industrys most challenging technology issues.



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As wireless technologies evolved through the early 1990s, we experienced strong revenue growth and
increased demand for new services to serve the growing wireless subscriber base. Our services simplify the interconnection and management of complex and rapidly converging voice and data networks. Our proven internal capabilities position us well to
continue developing innovative solutions to enhance the technological advantage of our services and meet the industrys evolving requirements.



We began offering our suite of services globally during the late 1990s as demand for international roaming interoperability grew. In addition to
developing a GSM to IS-41 interoperability solution, we expanded our presence in Latin America and Asia/Pacific with key customers such as Telcel, Telefónica, NTT DoCoMo and most recently, China Unicom.



In 2000, GTE and Bell Atlantic merged to form Verizon, Inc. As part of that
transaction, we became an indirect, wholly owned subsidiary of Verizon. In addition, to further broaden our services suite and expand our wireline customer base, we acquired GTEs Intelligent Network Services business in June of 2000. The
integration of this business provided our company with a national SS7 network as well as access to databases for local number portability, toll-free calling and line information database access.



In February 2002, we were acquired by Syniverse Holdings, Inc. (formerly, TSI
Telecommunication Holdings, Inc.), a corporation owned by Syniverse Holdings, LLC (formerly TSI Telecommunication Holdings, LLC), whose members include affiliates and co-investors of GTCR Golder Rauner, LLC and members of our senior management.
Today, we operate as a business that offers a complete suite of technology interoperability, network and call processing solutions. We believe that we are the largest provider of wireless roaming financial clearing services in the world based on the
amount of revenues we receive from wireless carriers. We also operate one of the largest unaffiliated SS7 networks in the United States and provide complementary intelligent network and database services to telecommunication and data network
providers. We are also the leading provider of best-in-class subscriber verification, call processing and fraud detection and prevention solutions to the wireless industry.



In February 2003, we opened a European office based in The Netherlands, headed by a managing director for the region. The
European team greatly increased exposure for our products and services in the region.



On July 23, 2003, Syniverse Networks, Inc. (formerly TSI Telecommunication Network Services Inc.) acquired Brience, Inc. by merging Brience, Inc. with and into Syniverse Brience, LLC (formerly TSI Brience, LLC), a
newly formed wholly owned subsidiary of Syniverse Networks, Inc., with Syniverse Brience, LLC continuing as the surviving entity and a wholly owned subsidiary of Syniverse Networks, Inc. Historically, Brience, Inc. developed and sold information
access and integration software products to large enterprises. At the time of the merger, however, Brience, Inc.s business was limited to selling and servicing its Mobile Processing Server product.



In December 2003, we acquired Softwright Holdings Limited, a United
Kingdom-based provider of mobile number portability solutions. The European model for number portability is a call routing system, presenting opportunities for us to secure business by exporting our centralized database and intercarrier
communications business model.



Products and Services



We provide a diverse set of network, number porting, technology
interoperability, call processing and other outsourcing services to meet the evolving requirements of the telecommunication services industry.



Network Services



Through our diverse network architecture, we provide connectivity to SS7 and other network transport protocols such as X.25, Frame Relay and GPRS. Many of
our service capabilities are based on our SS7 network that enables call set up, call delivery and access to intelligent network services such as Caller ID, local number portability and LIDB. SS7 is the industry standard used by almost every switched
telephone operator in North America to identify available network routes and to designate the circuit used for each individual telephone call. As a single SS7 and intelligent network services source, we provide our customers cost-effective
connectivity to the signaling networks of substantially the entire U.S. public-switched telecommunication network, global connectivity and an array of SS7 network-enabled services. Our SS7 network and related services allow our customers to monitor
network performance and subscriber activity on a real-time basis. For our Frame Relay and other network services, the circuits are provided by a variety of global vendors. As a leading independent provider of SS7 network services, we support
interoperability through hundreds of network links distributed over six signaling transfer point, or STP, pairs. We have approximately 350 Frame Relay connections (both via public provider or our private Frame Relay backbone). We have 14 customers
in North America using our General Packet Radio Service Roaming Exchange, or GRX, network for GPRS service. These customers account for substantially all of the existing domestic traffic for GPRS services.



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Our primary network service solutions include INLink, Visibility, SS7 Database Access for intelligent
network services, Inpack and CCNS. We generate revenues from these service solutions primarily by charging per-transaction processing fees, circuit fees and port fees.



| |  | INLinkOur SS7 service, INLink, provides wireless carriers with network connectivity and access to a variety of advanced services and features such as network
management, fraud control, call setup, call delivery and intelligent network services (LIDB, LNP and Caller ID). INLink offers seamless connectivity and interoperability regardless of location, switch type, signaling protocol or network protocol.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | VisibilityOur Visibility services provide wireless carriers with valuable operational analysis tools for real-time monitoring of subscriber activity both within a
carriers own network and across multiple carrier networks. Visibility allows for timely resolution of customer service issues and for detection and prevention of fraudulent calls. Visibility also enables wireless carriers to view roaming
activity in their own markets as well as their subscribers roaming activity in other markets, in a user-friendly, Web-based reporting environment. As one of the industrys most comprehensive SS7 network monitoring and analysis tools,
Visibility combines validation, authentication and call delivery messages sent over SS7 networks with similar information from our other services. SS7 information is collected either at our intelligent network STPs or at the carriers own STPs.
Visibility also gives carriers the ability to reinstate service for subscribers who are experiencing problems while roaming on another carriers network without involving the other carrier.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | SS7 Database AccessOur SS7 network services provide database access for intelligent network services such as local number portability, wireless local number
portability, line information database service, toll-free service and Caller ID.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Local Number Portability (LNP)Local number portability allows a wireline telephone subscriber to switch local service providers while keeping the same telephone number.
We manage interactions with number portability databases and provide database queries on a per-call basis, thereby allowing carriers to deploy local number portability without the high cost of building their own infrastructure. In 1996, the FCC
mandated that incumbent local exchange carriers implement wireline number portability in all major U.S. markets beginning in 1999.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Line Information Database (LIDB) Access and TransportWe provide access to line information databases which are developed and maintained by telecommunication carriers
that provide subscriber information necessary to provide enhanced services such as validating telephone numbers and billing information. The SS7 network then determines the appropriate database to validate the card number, routes the information to
the switch that analyzes the response and determines how to treat the call.
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| |  | Toll-Free Database Access and TransportOur SS7 network provides access to a database of all toll-free numbers in the United States to provide effective call routing by
returning the response to our customer for call routing.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Caller Name DatabaseWe develop and maintain calling name database access, allowing carriers to query many regional Bell operating companies and major independent
telephone carriers and reduce the name not available messages that customers receive. We also manage and operate a database for storage of incumbent local exchange carrier, competitive local exchange carrier and wireless calling name
records.
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| |  | InpackInpack is a suite of services that enables subscribers to have seamless access to their home carriers GPRS network while roaming both nationally and
internationally. Inpack is a GRX offering for GPRS and serves as a virtual private network, or VPN, for other emerging services, such as signaling solutions, billing, clearing and settlement services. The service offers secure access to home based
e-commerce, public Internet, corporate intranets and e-mail systems to roaming subscribers.
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| |  | CCNSOur Cellular Carrier Network Services, or CCNS, provide network circuits that interconnect carriers cell sites or switches to other switches or network
elements across local access transport areas, or LATA, or state boundaries. These circuits can be used for transmitting high-speed data, voice or video.
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| |  | Mobile Processing Server an integrated software design and development environment for building mobile solutions that provides a compelling user experience across
multiple device form factors ranging from cell phones to PDAs.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Number Porting Services



The
Telecommunications Act of 1996 mandates number portability as a means to promote competition for phone service. Number portability means that a subscriber can switch telephone service provider but retain the existing telephone number. Wireline
carriers in the largest markets have offered number portability since 1998. After numerous delays and postponements, wireless carriers were required to offer wireless local number portability as of November 24, 2003. The implementation of WLNP
fundamentally changed the way the wireless industry identifies phone numbers and routes calls. Additionally, porting a number from one carrier to another is an exceedingly complex process that minimally requires eleven transactions or
exchanges of information between carriers and between carriers and NPAC. Furthermore, the method for porting a wireline number to a wireless phone is not standardized. True to our legacy of product innovation and solving industry challenges we
developed the industrys only end-to-end, fully integrated suite of services to enable wireless carriers to meet the FCC-mandated November 2003 deadline for wireless local number portability. Our solutions are offered as either service bureau
or turnkey, providing flexibility for carriers and creating a significant recurring revenue stream for us. Our suite of WLNP services address pre-provisions, inter-carrier communication, communication with the NPAC and system and help desk
troubleshooting that is necessary when ports fail, known as fallout. Our specific services include:



| |  | Pre-Port Validation reduces fallout and improves customer service by validating and obtaining certain information prior to submitting a port request to a trading
partner.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Inter-carrier Communications (ICC) Service Order Activation (SOA) Service Bureau - streamlines the ordering and communication process to the regional NPACs and provides the
inter-carrier communications required to exchange a subscribers service order information with another carrier before the number can be ported.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Inter-carrier Communications (ICC) Clearinghouse - provides a simple way for carriers who have already invested in a service order activation (SOA) application to reach
multiple porting partners with a single connection to us. Rather than maintaining dedicated circuits to multiple porting partners, a single connection to our clearinghouse provides a way to exchange porting requests and responses with trading
partners.
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| |  | Wireline-to-Wireless Porting  enables wireless carriers to exchange porting messages with wireline carriers by submitting wireless porting requests and wireless porting
request responses to us for conversion to appropriate formatting and delivery to wireline carriers.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Fallout Management/Port Center - provides troubleshooting and help desk services by knowledgeable, dedicated WLNP customer service representatives to restore normal porting
message flow through when an error occurs. Processes SOA and ICC system-generated errors, network connectivity related errors, information errors and other WLNP-related problems requiring manual interaction between a carrier and its trading partners
or the NPAC.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Workflow Management - organizes, prioritizes, routes, logs and reports required WLNP errors and transactions. This service includes the provision of an automated workflow
management tool to support a carriers port center operations.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | LRN Query Service- enables carriers to query a number portability database to determine if a dialed number has been ported in order to route calls in a ported environment.
Our LRN Query service provides access to all U.S. regional NPAC databases. If the number has been ported, the service determines how to route the call to the new carrier.
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Technology Interoperability Services



We provide the wireless industry with technology interoperability solutions to facilitate the processing of roaming billing
and SMS messages and data required for seamless regional, national and international wireless roaming telephone service. To provide ubiquitous service to wireless customers, wireless carriers enter into inter-carrier roaming agreements that govern
pricing and business rules associated with one carrier providing service to another carriers customers. To manage network availability and to properly bill these subscribers for roaming charges, wireless carriers must exchange data across
various billing protocols and integrate that data with their existing billing and management information systems. As the wireless industry has evolved, we have developed solutions that address underlying interoperability complexities including the
translation of various network, signaling and billing protocols to allow different wireless carriers to communicate. Our clearinghouse services have established us as the trusted third party for the collection, translation and distribution of the
information required to initiate, complete, monitor and bill telecommunication services provided by one carrier to numerous other carriers customers. Our services are also used to clear roaming traffic between multiple billing systems within a
single carrier. We are the largest wireless clearinghouse in the United States, processing nearly 60% based on wireless subscribers.



Our primary technology interoperability services that we offer for clearing and financial settlement are ACCESS, ACCESS S&E, UniRoam, Access Revenue
Management and Message Manager. These services allow the exchange of proprietary subscriber billing data through a trusted third party on a secure and confidential basis, ensuring the timely exchange of roaming data and compliance with established
business rules for roaming activity between carriers. We primarily generate revenues by charging per-transaction processing fees.



| |  | ACCESSOur primary clearing and financial settlement service, ACCESS, enables the timely exchange of billing data between domestic and international wireless service
providers, accurately converts and processes multiple billing protocols and manages complex accounting procedures. ACCESS simplifies the exchange of CIBER billing data between IS-41-based carriers (CDMA, TDMA, AMPS) and their roaming partners. This
service generates user-friendly, on-line reports with daily and monthly summaries of key data.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | ACCESS S&EACCESS S&E is our service that provides ACCESS-like functionality to GSM carriers. ACCESS S&E provides for the exchange of billing data between
GSM carriers and their GSM and IS-41 roaming partners. ACCESS S&E also has Web-based reporting systems that provide daily and monthly summaries of key data.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | UniRoamUniRoam simplifies interstandard and international roaming (IS-41/GSM) by providing carriers with subscriber call origination, automatic call delivery and home
wireless system billing. UniRoam provides interoperability between different cellular network protocols, including ANSI-41/CIBER (used in CDMA, TDMA and AMPS networks) and GSM-MAP/TAP, using our network and infrastructure as a common point of
mediation and provides seamless coverage across international borders.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Access Revenue ManagementAccess Revenue Management, or ARMS, is a secure, end-to-end solution that provides wireline carriers with the data collection, conversion,
rating, billing and reporting necessary to assure revenue from carrier access billing and reciprocal compensation. We collect data from various record formats and provide analytical tools, rating and conversion services to enable carriers to
optimize revenues from inter-carrier access billing.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Message ManagerOur Message Manager solution enables network access, protocol translation, routing and delivery of short message service (SMS) messages across carrier
networks. According to Mobile Lifestream, the number of short messages sent on a world-wide basis via SMS is expected to grow to approximately 79 billion per month in 2005 from approximately 20 billion per month in 2000. As SMS use grows, the demand
will increase for interoperability, network and value-added services to enable seamless delivery and receipt of these messages.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Event ManagerEvent Manager addresses a variety of wireless Internet events including messaging, m-commerce, mobile financial, Internet content, intranet access,
entertainment and location-based applications. It simplifies the management and administration of the business relationships established between content providers and wireless operators, as well as that between wireless operators and their
subscribers. This solution facilitates virtual roaming with wireless Internet partners, via data collection, rating, clearing and settlement and reporting of wireless data records for wireless operators and content providers.
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Call Processing Services



We developed many of the wireless industrys first and leading solutions for wireless subscriber verification, call
processing and technical fraud detection and prevention. For a wireless subscriber to make and accept calls, as well as to access custom services while roaming on another operators network, the host operator must validate with the home
operator that the customer is an authorized subscriber on a specified service plan. As the wireless industry has evolved, we have developed subscriber verification and call delivery solutions that address interoperability complexities by translating
and converting various network, signaling and billing protocols to facilitate wireless roaming service coverage and telephone call delivery. Our comprehensive, integrated fraud management solutions employ advanced technologies to provide flexible,
efficient fraud detection and fraud prevention, regardless of switch type, software release version or industry standard. Our integrated service offerings provide a total authentication solution and comprehensive protection for subscribers.



Our primary call processing services are FraudManager, Follow
Me Roaming Plus, Key Management Center and FraudX. We generate revenues from these services primarily by charging per-transaction processing fees and licensing software.



| |  | FraudManagerOur FraudManager solution verifies a subscribers eligibility to receive service while roaming in another carriers market. This is enabled by our
proprietary call processor, which can replicate mobile switching center functionality to serve functions such as the Home Location Register (HLR) or Visited Location Register (VLR). The call processor can also communicate with carriers
switches on a peer-to-peer basis, thereby replicating home, visited or foreign Mobile Switching Center (MSC) functionality. This provides the capability to expeditiously and cost-effectively address industry and customer issues without being
dependent upon third-party switch manufacturers (e.g., Lucent, Motorola, Nortel). FraudManager is recognized as one of the industrys premier pre-call validation services that detects and blocks a fraudulent call on an invalid users first
attempt.
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| |  | Follow Me Roaming PlusFollow Me Roaming Plus (FMR Plus) is an advanced call delivery system that provides roaming subscribers with seamless activation and call delivery
when traveling between IS-41 markets. The service facilitates roaming by creating a temporary identity for roaming subscribers in visited networks and allows them to maintain their custom calling features while roaming. Our FMR Plus solution enables
carriers to provide seamless roaming through compatibility with all major switch types and interoperability with non IS-41 environments.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Key Management CenterOur Key Management Center provides carriers with an affordable authentication service to prevent wireless fraud. In the authentication process, the
exchange of authentication keys (A-Key) between carriers and multiple wireless equipment manufacturers requires establishing numerous electronic data interchange (EDI) connections. Both wireless carriers and wireless equipment manufacturers can
benefit from the increased efficiency and security of using us as a single source to coordinate storage, retrieval and distribution of A-Keys. By doing so, A-Key distribution and management between manufacturers and wireless carriers are greatly
simplified. Administrative and network costs are reduced. Wireless carriers also save the costs of developing secure storage and EDI transmission capabilities.
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| |  | FraudXFraudX is our technical fraud detection and prevention solution. Our fraud profiling system uses near real-time data from mobile switches to create a unique
profile for each subscriber, based upon the subscribers incoming and outgoing call records. After the subscriber profiles are established, FraudX continually compares each subscribers calling activity to his or her profile and to known
fraudulent profiles, constantly monitoring events and generating alerts in case of usage pattern deviation. FraudX also allows for subtle variations in subscriber activity and updates the subscribers profiles with new, legitimate calling
patterns as they emerge.
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Other Outsourcing
Services



We also offer several unrelated, value-added
outsourcing services that were developed to assist mobile operators in attracting and retaining high value enterprise and corporate accounts, as well as leveraging unique applications such as telematics.



Our primary other outsourcing services include STREAMLINER and
Fleet-On-Track.



| |  | STREAMLINERSTREAMLINER allows wireless carriers to present their enterprise customers with a single consolidated bill when service is provided by multiple carriers
across different markets. This solution also helps enterprise customers to better understand their wireless invoice by providing a tool that analyzes complex business account structures and large volumes of usage data.
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| |  | Fleet-On-TrackFleet-On-Track is a platform technology that enables trucking and other distribution companies to track their fleets of vehicles throughout the country,
providing for better utilization and resource management. This solution was a precursor to our work as the original developer of the OnStar technology that provides wireless access to directions, restaurant guides and emergency roadside assistance.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Customers



We serve more than 290 telecommunication service providers in 26 North
American, Latin American, Asia Pacific and European countries with our extensive portfolio of solutions. We maintain strong and collaborative relationships with our customers, which include wireless and wireline carriers such as ALLTEL, AT&T
Wireless, Cingular Wireless, Dobson Communications, Nextel, Sprint PCS, U.S. Cellular Corp. and Verizon Wireless as well as wireline carriers such as XO Communications, Allegiance, Mpower and US Lec. We also serve wireless companies in Latin
America, Asia Pacific and Europe, including China Unicom, NTT DoCoMo, T-Mobile International and Telefónica, among others. We believe that maintaining strong relationships with our customers is one of our core competencies and that
maintaining these relationships is critical to our success.



Our top ten customers accounted for approximately 57.8% of our revenues for the year ended December 31, 2003. Our largest customer is Verizon (Verizon Wireless, Verizon Network Services and other Verizon affiliates), which accounted for
approximately 23.3%, 31.0%, and 33.9%, of our revenues in 2003, 2002 and 2001, respectively. We have a revenue guaranty agreement with respect to revenues from Verizon Wireless through December 31, 2005. Our customer base includes wireless companies
in the U.S., Latin America, Asia/Pacific and Europe. In addition, we also provide services to wireline providers such as competitive local exchange carriers, local exchange carriers and interexchange carriers.



Historically, we have experienced a low level of customer turnover and have
contract renewal rates averaging approximately 88% over the last three years. Our dedication to provide superior solutions and services to our customers is evident in that we currently serve all of the top ten wireless carriers in the U.S., many
premier wireline providers and a growing customer base outside the United States.



Sales and Marketing



As of December 31, 2003,
our Sales and Marketing organizations include 109 people who work together to identify and address customer needs and concerns, deliver comprehensive services, develop a clear and consistent corporate image and offer a best-in-class customer support
system designed to give customers efficient, courteous and expert advice on a timely basis.



| |  | Sales. The sales department was reorganized from a centralized sales force to a globally focused sales force in 2002 to better serve the needs of existing customers and to
identify new opportunities more quickly. Sales directors are organized geographically with individuals responsible for North America, Central and Latin America, Asia Pacific and Europe/Middle East/Africa. Regional sales managers are located
throughout the U.S. to serve top tier customers in the Northeast, Northwest, Midwest and the Southern U.S. Account managers are product specialists and work as a team with the regional sales managers and directors to respond to customer needs.
Compensation for our sales force is composed of an industry-competitive base salary and a variable component based on sales quota attainment.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Marketing. Our marketing organization is comprised of channel distribution managers, product managers and marketing services employees. Channel distribution managers are
responsible for working with the sales organization to develop specific pricing options, current and future product needs, revenue forecasts and projected market opportunities. Our product managers are responsible for managing the products
positioning through the life cycle as well as managing costs and initial pricing. This includes development of a product plan, product development requirements, resource planning and vendor management if appropriate. Each product manager coordinates
a cross-functional product team with participants from several functional areas within our organization including sales, technology and operations. These product team participants are responsible for coordinating the execution of the product plan
within their functional teams. Marketing services employees work with channel distribution managers and product managers to determine appropriate allocation of funding for and coordinate advertising, promotions, media relations, speaking
opportunities, trade shows and our users group.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Operations and Customer Support



As of
December 31, 2003, we had 183 employees from a number of groups within our organization dedicated to managing our own internal operations and processes and supporting our customers.



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| |  | Internal Operations Support. Our Internal Technology Support group manages our internal hardware and software technology program as well as the LAN, Internet, email and
departmental server data centers for our employees. This group is responsible for the Syniverse Solution Gateway, our system for customer problem management, and also provides management information software solutions and support that enable
efficient operations within our organization. Other internal operations functions include information security, supplier management, facilities management and disaster recovery. All provide mission-critical support to our employees in achieving
strategic objectives and help ensure our ability to continue to serve our customers effectively.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Customer Service, Documentation and Training. Our Customer Service organization provides front-line support for our services to our global customers. New support
personnel are recruited for their multi-lingual, interpersonal and customer care skills, and are provided intensive product training prior to accepting direct customer interface responsibility. Our Documentation and Training group publishes the
technical documentation accompanying our portfolio of services in multiple languages, and also travels nationally and internationally to provide strategic customer training in our services suite. The group has established world-class training
facilities in Tampa, where it sponsors regular customer and employee program offerings, and has also developed Web-based real-time training that our customers have successfully utilized as a remote training option.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Technology



As of December 31, 2003, the Technology group was comprised of 223 professionals. This group performs all functions
associated with the design, development, testing, implementation and operational support of our services. The Technology group balances technology and business priorities and enhances our ability to deliver timely and cost-effective solutions.



The primary functions of the Technology group include:



| |  | Product Development and Life Cycle.These groups deliver new product developments, enhancements and maintenance releases in a timely manner and develops integrated solutions
that address customer needs across multiple areas including billing, messaging, decision support and reporting. These groups also constantly monitor technology developments to ensure that we leverage our legacy investments while developing new
technologies that provide flexible and cost effective solutions to our customers.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operational Support Services. These groups provide 24x7 hour operational support for our products to ensure a high level of service and system availability to our customers.
These groups work with the other Technology groups to identify and implement proactive measures to meet our customer commitments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Services. This group is responsible for maintaining the high overall quality of customer service through centralized testing, system/data base administration and
configuration management. This group also works with our vendors on system performance management, capacity planning and system tuning.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Network Operations



As of December 31, 2003, we had 69 employees dedicated to network provisioning, monitoring and support.



| |  | Network Operations Center.We maintain a state-of-the-art Network Operations Center (NOC) that actively monitors our applications network and our connections to our
customers, providing support both domestically and internationally 24 hours a day, seven days a week, 365 days a year. Our NOC proactively identifies potential application, operating system, network, switch connectivity and call processing problems
and manages those problems through resolution with customers in conjunction with IXCs, LECs, field engineering, our internal product support and product development teams, and hardware and software vendors.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Network Services. This group designs, develops and supports our SS7 and IP-based Intelligent Network Service offerings and works closely with our other functional departments
and vendors to ensure that we are engineering and monitoring cost effective and reliable network solutions which meet our customers needs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Business Development and Strategy



As of December 31, 2003, our Business Development and Strategy organization is composed of 12 people and is responsible for strategy development, new
business initiatives, first office applications, technology planning and market planning. This group is responsible for developing integrated and achievable short and long-term business plans in support of our vision and strategic plan. This
responsibility extends from initial concept through first customer implementation, including strategic partnership development and contract negotiations. This group develops strategies that leverage technology evolution and designs solutions to
technical problems associated with our core business and new business initiatives.



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Employees



As of December 31, 2003, we had approximately 672 employees, none of whom are represented by a union. We believe our relations with employees are good.



Competition



We believe we are the only company that offers a full suite of technology
interoperability, network and call processing services. However, we compete with a number of U.S. and international companies in specific areas of our business.



| |  | Network Services. Our competitors for SS7 network connectivity and intelligent network services include VeriSign, Southern New England Telephone (SNET), Transaction Network
Services (TNS) and regional Bell operating companies. Wireless and wireline carriers may also choose to deploy and manage their own in-house SS7 networks. Our Inpack packet data network service competes with a variety of carriers including Sonera
and Cable & Wireless in the U.S. and also Global Crossing, France Telecom, KPNQwest, and Comfone (a subsidiary of Swisscom) internationally.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Services - Our primary competitors in the United States for WLNP services are VeriSign, NeuStar and Telcordia and to a lesser degree, Evolving Systems. In
Europe, Ernst & Young Cap Gemini and Accenture as well as several other companies offer mobile number portability solutions, however the standard mobile number portability processes in Europe are not centralized or automated on the scale of our
WLNP systems and processes.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Services. Our primary competitors in the U.S. technology interoperability market are EDS and VeriSign. Internationally, our ACCESS and ACCESS
S&E services compete with EDS, MACH and Dan Net. In the wireline clearinghouse services marketplace, we encounter Communications Data Group (CDG), INTEC Telecom Systems/CHA Systems, Aptis/EUR Data Center and Daleen Technologies. Certain wireless
carriers also choose to deploy in-house interoperability and billing solutions for clearing internal and affiliate traffic.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Call Processing Services. Our call processing services primarily compete with turnkey products from vendors such as Logica and HNC Software/Systems Link. Internationally, we
compete primarily with turnkey product vendors such as Logica. Our subscriber verification and key management services compete with CMG Telecommunication Inc., DSC Communications, HNC Software/SystemsLink and others. Our wireless fraud prevention
solutions compete primarily with carrier-deployed software solutions from Bassett Telecom Solutions, HNC Software/SystemsLink, Compaq, Dynamics Research Corp (DRC), ECTel, Lightbridge/Corsair and others. Also, certain carriers may choose to deploy
in-house call processing and fraud detection and prevention solutions.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services. We compete with Boston Communications Group, Lightbridge/Corsair, HNC Software/SystemsLink and others in the provisioning of prepaid wireless
account management services. Certain wireless carriers have developed their own services rather than utilize our STREAMLINER service.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Competitive factors in the market for our services primarily include breadth and quality of services offered, price, development capability and new
product innovation.



Governmental Regulation



We are not subject to the direct regulation of the FCC or any state utility
regulatory commission. Some of our customers, however, may be subject to federal or state regulation that could have an indirect effect on our business. Because we do not provide voice-grade or data services that are deemed to be common carrier
telecommunication services, we do not anticipate that our services will be subject to regulation by the FCC or state public utility commissions.



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Environmental Regulation



We are subject to a broad range of federal, foreign, state and local laws and regulations relating to the pollution and protection of the environment
and health and safety. Among the many environmental requirements applicable to us are laws relating to air emission, wastewater discharges and the handling, disposal and release of solid and hazardous substances and wastes. Based on continuing
internal review and advice from independent consultants, we believe that we are currently in substantial compliance with applicable environmental requirements.



We are also subject to laws, such as CERCLA, that may impose liability retroactively and without fault for releases or threatened releases of hazardous
substances at on-site or off-site locations. We are not aware of any material releases for which we may be liable under CERCLA or any other environmental or health and safety law.



We do not currently anticipate any material adverse effect on our operations, financial condition or competitive position as
a result of our efforts to comply with environmental requirements. Some risk of environmental liability is inherent, however, in the nature of our business, and we cannot assure you that material environmental liabilities will not arise. It is also
possible that future developments in environmental regulation could lead to material environmental compliance or cleanup costs.



Intellectual Property Rights



We consider our patents, patent licenses and trademarks, in the aggregate, to be important to our business and seek to protect this proprietary know-how
in part through U.S. and foreign patent and trademark registrations. Certain of our patents are also important individually. We currently maintain 50 registered trademarks and 12 patents in the United States and in foreign countries. In addition, we
maintain certain trade secrets for which, in order to maintain the confidentiality of such trade secrets, we have not sought patent protection. Concurrent with our purchase from Verizon Communications by Syniverse, we entered into an intellectual
property agreement with Verizon Communications and Verizon Information Services pursuant to which:



| |  | we and the Verizon companies each conveyed an undivided joint ownership interest to the other in certain of our respective unregistered intellectual property;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates granted a limited, royalty-free, non-exclusive, worldwide license of certain of our respective registered intellectual property to us and
our affiliates;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | we granted a limited royalty-free, non-exclusive, worldwide license of certain of our registered intellectual property to the Verizon companies and their affiliates;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates granted a limited, royalty-free, non-exclusive, worldwide license of certain third-party intellectual property to us pursuant to their
right to sublicense such materials;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies conveyed and transferred to us certain of their intellectual property; and
| | - | ------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates generally agreed to be indefinitely prohibited from using any of the intellectual property that we license to them under the intellectual
property agreement to offer goods or services that compete with us, whether such goods or services are provided to third parties or used internally.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



See Certain Relationships and Related TransactionsIntellectual Property Agreement.



ITEM 2. PROPERTIES



As of December
31, 2003, our principal facility was 188,882 square feet of leased office space in Tampa, Florida that we use for headquarters and administration purposes. The lease expires on October 31, 2006, subject to renewal terms. We lease several other small
immaterial facilities for office space and STP equipment storage.



We consider our properties to be in good condition generally and believe that our facilities are adequate to meet our anticipated requirements.



ITEM 3. LEGAL PROCEEDINGS



We are
currently a party to various claims and legal actions that arise in the ordinary course of business. We believe such claims and legal actions, individually and in the aggregate, will not have a material adverse effect on our business. As of December
31, 2003, we have considered all of the claims and disputes of which we are aware and accrued amounts in our analysis of doubtful accounts or probable loss accruals.



The most significant of the claims, in terms of dollars sought, is described below.



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SBC Communications, Inc. Jibia SBC Ameritech, SBC Southwestern Bell and SBC Pacific Bell (collectively,
SBC), have asserted claims against us in the total principal sum of $7.3 million, based on alleged overcharging for QRS and CNAM hubbing and transport services we provided. They have also declined to pay us an additional $1.9 million related to
these same services. We deny the claims and believe they are unfounded and intend to vigorously defend ourselves. On April 15, 2003, we filed suit against SBC Southwestern Bell and SBC Pacific Bell in Hillsborough County Circuit Court seeking
monetary damages and a determination that SBC is not entitled to any sum they claim is owed. Our lawsuit was removed to Federal Court by SBC on the grounds of diversity jurisdiction. We disputed the grounds for removal and moved to remand the action
to state court. The Federal Court granted our motion to remand and the action is now pending in state court in Florida. SBC also filed a motion to dismiss on the grounds of a lack of jurisdiction. We dispute this claim. On October 6, 2003
Southwestern Bell Telephone, L.P. filed a breach of contract claim against us in state court in Texas seeking approximately $2.0 million. We have retained Texas counsel to seek a stay of the Texas proceedings pending disposition of the matter in
Florida. We are also denying this claim and intend to vigorously defend ourselves.





ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



No matter was submitted to a vote of security holders during the fourth quarter of calendar year 2003.



PART II



ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES



There is currently no established public trading market for our no par value common stock, which is owned of record by Syniverse Inc., a company which is
wholly owned by Syniverse LLC. Likewise, there is currently no established public trading market for Syniverse LLC securities.



We have not paid any dividends on our common stock during the past fiscal year and do not intend to pay dividends on our common stock in the foreseeable
future.



On February 14, 2002, Syniverse Holdings, Inc.
(formerly TSI Telecommunication Holdings, Inc.), a wholly owned subsidiary of Syniverse Holdings, LLC (formerly TSI Telecommunication Holdings, LLC), acquired us by merging its wholly owned subsidiary, TSI Merger Sub, Inc., with and into us.
Pursuant to the merger agreement, Verizon received merger consideration equal to $770.0 million in cash. Syniverse LLC is owned by GTCR Fund VII, L.P., certain of its affiliates and co-investors, G. Edward Evans and certain other members of our
management, who we collectively refer to as the equity investors. In connection with this transaction, Syniverse LLC sold to the equity investors approximately $255.3 million in cash of Syniverse LLC Preferred and Common Units. The sales
were nonpublic offerings by Syniverse LLC, and therefore exempt from registration, pursuant to Section 4(2) of the Securities Act of 1933, as amended. Additional information regarding these and other sales is set forth under the heading
Certain Relationships and Related TransactionsSenior Management Agreements and Certain Relationships and Related TransactionsPurchase Agreements.



Syniverse Holdings, LLC sold 900,900.9 common units to F. Terry Kremian in December 2003 pursuant to a Senior Management
Agreement. Each common unit was sold at a price of $0.0333 per unit. This sale was exempt from registration pursuant to Section 4(2) of the Securities Exchange Act of 1933.



ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA



The following table sets forth certain of our historical financial data for the most recent five years. We have derived the selected historical consolidated financial data as of December 31, 2002 and 2003 and for the
fiscal years ended December 31, 2001 and 2003, the period from January 1, 2002 to February 13, 2002 and the period from February 14, 2002 to December 31, 2002 from our audited financial statements and the related notes included elsewhere herein. The
selected historical consolidated financial data as of December 31, 1999, 2000 and 2001 and for the years ended December 31, 1999 and 2000 have been derived from our audited consolidated financial statements, which are not included in this filing.
The selected historical financial data set forth below are not necessarily indicative of the results of our future operations and should be read in conjunction with the discussion under the heading Managements Discussion and Analysis of
Financial Condition and Results of Operations, and the historical consolidated financial statements and accompanying notes included elsewhere in this report.



As a result of applying the required purchase accounting rules, our financial statements were significantly affected. The
application of purchase accounting rules result in different accounting bases and hence the financial information for the periods beginning on February 14, 2002 are not comparable to the information prior to this date.



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The term successor refers to Syniverse Holdings, LLC and all of its subsidiaries, including
Syniverse Technologies, Inc., following the acquisition of the company on February 14, 2002. The historical financial results of Brience, Inc., from February 14, 2002, which is the date that GTCR Fund VII, L.P. and its affiliates possessed common
control of us and Brience, Inc., through July 23, 2003, which is the date that we acquired Brience, Inc., are included in the financial results of the successor because this acquisition is accounted for as a combination of entities under common
control, similar to a pooling of interests. The term predecessor refers to Syniverse Technologies, Inc. prior to being acquired by Syniverse Holdings, Inc. on February 14, 2002.



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|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|-------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ------------------------------------------ | - | ------- | -------------------------------------------- |  | - | ---------------------------- | - |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|                                                                           |  | Predecessor             |         |   | Successor                                  |  
|                                                                           |  | Year Ended December 31, |         |   | Period from January 1 to February 13, 2002 |   |         | Period from February 14 to December 31, 2002 |  |   | Year Ended December 31, 2003 |  
|                                                                           |  | 1999                    |         |   | 2000                                       |   |         | 2001                                         |  |   |                              |  
|Statement of Operations Data:                                              |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Revenues                                                                   |  | $                       | 277,680 |   |                                            | $ | 315,936 |                                              |  | $ | 361,358                      |   |  | $ | 39,996  |   |  | $ | 296,044 |   |  | $ | 271,408 |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Costs and expenses:                                                        |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Cost of operations                                                         |  |                         | 141,979 |   |                                            |   | 150,156 |                                              |  |   | 169,025                      |   |  |   | 20,655  |   |  |   | 130,364 |   |  |   | 109,744 |  
|Sales and marketing                                                        |  |                         | 21,513  |   |                                            |   | 24,265  |                                              |  |   | 24,348                       |   |  |   | 2,614   |   |  |   | 22,706  |   |  |   | 18,631  |  
|General and administrative                                                 |  |                         | 30,848  |   |                                            |   | 45,721  |                                              |  |   | 41,245                       |   |  |   | 3,001   |   |  |   | 42,630  |   |  |   | 39,881  |  
|Provision for (recovery of) uncollectible accounts                         |  |                         | 200     |   |                                            |   | 2,203   |                                              |  |   | 2,207                        |   |  |   | 1,340   |   |  |   | (693    | ) |  |   | 466     |  
|Depreciation and amortization                                              |  |                         | 8,866   |   |                                            |   | 13,061  |                                              |  |   | 15,203                       |   |  |   | 1,464   |   |  |   | 33,285  |   |  |   | 37,319  |  
|Restructuring                                                              |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | 2,845   |   |  |   | 2,164   |  
|Impairment losses on intangible assets                                     |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   |        |   |  |   | 53,712  |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|                                                                           |  |                         | 203,406 |   |                                            |   | 235,406 |                                              |  |   | 252,028                      |   |  |   | 29,074  |   |  |   | 231,137 |   |  |   | 261,917 |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Operating income                                                           |  |                         | 74,274  |   |                                            |   | 80,530  |                                              |  |   | 109,330                      |   |  |   | 10,922  |   |  |   | 64,907  |   |  |   | 9,491   |  
|Other income (expense), net:                                               |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Interest income                                                            |  |                         | 2,802   |   |                                            |   | 3,087   |                                              |  |   | 3,903                        |   |  |   | 432     |   |  |   | 965     |   |  |   | 768     |  
|Interest expense                                                           |  |                         | (2,822  | ) |                                            |   | (22     | )                                            |  |   |                             |   |  |   |        |   |  |   | (54,105 | ) |  |   | (58,128 | )
|Other, net                                                                 |  |                         | 6       |   |                                            |   | 4       |                                              |  |   | (80                          | ) |  |   | (19     | ) |  |   | (275    | ) |  |   |        |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|                                                                           |  |                         | (14     | ) |                                            |   | 3,069   |                                              |  |   | 3,823                        |   |  |   | 413     |   |  |   | (53,415 | ) |  |   | (57,360 | )
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Income (loss) from continuing operations before provision for income taxes |  |                         | 74,260  |   |                                            |   | 83,599  |                                              |  |   | 113,153                      |   |  |   | 11,335  |   |  |   | 11,492  |   |  |   | (47,869 | )
|Provision for income taxes                                                 |  |                         | 28,156  |   |                                            |   | 32,548  |                                              |  |   | 43,895                       |   |  |   | 4,418   |   |  |   | 9,320   |   |  |   | 10,057  |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Income (loss) from continuing operations                                   |  |                         | 46,104  |   |                                            |   | 51,051  |                                              |  |   | 69,258                       |   |  |   | 6,917   |   |  |   | 2,172   |   |  |   | (57,926 | )
|Discontinued operations:                                                   |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Loss from discontinued operations                                          |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | (1,541  | ) |  |   |        |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Net income (loss)                                                          |  |                         | 46,104  |   |                                            |   | 51,051  |                                              |  |   | 69,258                       |   |  |   | 6,917   |   |  |   | 631     |   |  |   | (57,926 | )
|Preferred unit dividends                                                   |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | (22,952 | ) |  |   | (28,581 | )
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Net income (loss) attributable to common shareholders/unitholders        |  | $                       | 46,104  |   |                                            | $ | 51,051  |                                              |  | $ | 69,258                       |   |  | $ | 6,917   |   |  | $ | (22,321 | ) |  | $ | (86,507 | )
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Other Financial Data:                                                      |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Revenues (excluding Off-Network Database Query Fees)                       |  | $                       | 224,664 |   |                                            | $ | 257,317 |                                              |  | $ | 292,241                      |   |  | $ | 31,408  |   |  | $ | 234,927 |   |  | $ | 241,879 |  
|Net cash provided by (used in):                                            |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Operating activities                                                       |  |                         | 52,985  |   |                                            |   | 55,218  |                                              |  |   | 131,281                      |   |  |   | 1,185   |   |  |   | 57,765  |   |  |   | 48,366  |  
|Investing activities                                                       |  |                         | (18,426 | ) |                                            |   | (10,634 | )                                            |  |   | (99,831                      | ) |  |   | 34,781  |   |  |   | (12,278 | ) |  |   | (18,883 | )
|Financing activities                                                       |  |                         | (34,559 | ) |                                            |   | (42,000 | )                                            |  |   | (33,750                      | ) |  |   | (11,250 | ) |  |   | (44,196 | ) |  |   | (63,374 | )
|Capital expenditures                                                       |  |                         | 19,778  |   |                                            |   | 12,956  |                                              |  |   | 10,406                       |   |  |   | 606     |   |  |   | 12,278  |   |  |   | 18,280  |  
|Ratio of earnings to fixed charges (a)                                     |  |                         | 24.46   |   |                                            |   | 197.70  |                                              |  |   | 245.39                       |   |  |   | 193.12  |   |  |   | 1.18    |   |  |   | 0.19    |  
|                                                                           |  |                         |         |   |                                            |  
|Balance Sheet Data (at end of period):                                     |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Cash and cash equivalents                                                  |  | $                       |        |   |                                            | $ | 2,584   |                                              |  | $ | 284                          |   |  | $ | 25,000  |   |  | $ | 42,190  |   |  | $ | 8,299   |  
|Property and equipment, net                                                |  |                         | 24,881  |   |                                            |   | 24,387  |                                              |  |   | 23,656                       |   |  |   | 23,306  |   |  |   | 33,728  |   |  |   | 33,548  |  
|Total assets                                                               |  |                         | 126,386 |   |                                            |   | 198,380 |                                              |  |   | 247,867                      |   |  |   | 159,457 |   |  |   | 833,068 |   |  |   | 730,271 |  
|Total debt, net of discount                                                |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | 505,850 |   |  |   | 449,375 |  
|Shareholders/unitholders equity                                          |  |                         | 74,550  |   |                                            |   | 117,307 |                                              |  |   | 153,104                      |   |  |   | 133,510 |   |  |   | 270,791 |   |  |   | 213,776 |  
|                                                                           |  |                         |         |   |                                            |  
|Reconciliation to adjusted EBITDA (b):                                     |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Net income (loss) as reported                                              |  | $                       | 46,104  |   |                                            | $ | 51,051  |                                              |  | $ | 69,258                       |   |  | $ | 6,917   |   |  | $ | 631     |   |  | $ | (57,926 | )
|Restructuring                                                              |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | 2,845   |   |  |   | 2,164   |  
|Interest (income) expense, net                                             |  |                         | 20      |   |                                            |   | (3,065  | )                                            |  |   | (3,903                       | ) |  |   | (432    | ) |  |   | 53,140  |   |  |   | 57,360  |  
|Depreciation and amortization                                              |  |                         | 8,866   |   |                                            |   | 13,061  |                                              |  |   | 15,203                       |   |  |   | 1,464   |   |  |   | 33,285  |   |  |   | 37,319  |  
|Impairment losses on intangible assets                                     |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   |        |   |  |   | 53,712  |  
|Provision for Income taxes                                                 |  |                         | 28,156  |   |                                            |   | 32,548  |                                              |  |   | 43,895                       |   |  |   | 4,418   |   |  |   | 9,320   |   |  |   | 10,057  |  
|Loss from discontinued operations                                          |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | 1,541   |   |  |   |        |  
|Pre acquisition                                                            |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Brience EBITDA loss (gain)                                                 |  |                         |        |   |                                            |   |        |                                              |  |   |                             |   |  |   |        |   |  |   | 11,078  |   |  |   | 1,815   |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  
|Adjusted EBITDA                                                            |  | $                       | 83,146  |   |                                            | $ | 93,595  |                                              |  | $ | 124,453                      |   |  | $ | 12,367  |   |  | $ | 111,840 |   |  | $ | 104,501 |  
|                                                                           |  |                         |         |   |                                            |   |         |                                              |  |   |                              |   |  |   |         |   |  |   |         |   |  |   |         |  

---

|(a) | For the purpose of calculating the ratio of earnings to fixed charges, earnings are defined as pre-tax income from continuing operations. Fixed charges are the sum of (i) interest
expense, (ii) amortized premiums, discounts and capitalized expenses related to indebtedness and (iii) an estimate of the interest within rental expense.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|(b) | Adjusted EBITDA is determined by adding net interest income (expense), income taxes, depreciation, amortization, impairment losses on intangible assets, restructuring charges and
(income) loss from discontinued operations to Syniverses net income (loss), and Briences pre-acquisition EBITDA loss (gain) from net income (loss). We present adjusted EBITDA because it is generally accepted as providing useful
information regarding a companys ability to service and/or incur debt. In addition, it is used in some of our debt covenants and our executive compensation and bonus plans. You should not consider adjusted EBITDA in isolation from or as a
substitute for net income, cash flows from operating activities and other consolidated income or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or
liquidity.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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ITEM 7: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



Executive Overview



On February 14, 2002, Syniverse Holdings, Inc. (formerly TSI Telecommunication Holdings, Inc.) acquired Syniverse Technologies, Inc. (formerly, TSI
Telecommunication Services Inc.) by merging its wholly owned subsidiary, TSI Merger Sub, Inc., with and into Syniverse Technologies, Inc. Syniverse Holdings, Inc. is wholly owned by Syniverse Holdings, LLC (formerly TSI Telecommunication Holdings,
LLC). Syniverse Holdings, LLC and Syniverse Holdings, Inc. have no operations other than their ownership of their direct and indirect subsidiaries.



As a result of applying the required purchase accounting rules, our financial statements were significantly affected. The application of purchase
accounting rules result in different accounting bases and hence the financial information for the periods beginning on February 14, 2002 are not comparable to the information prior to this date. The term successor refers to Syniverse LLC
and all of its subsidiaries, including Syniverse Technologies, Inc. following the acquisition on February 14, 2002. The term predecessor refers to Syniverse Technologies, Inc. prior to being acquired by Syniverse Holdings, Inc.



Prior to February 14, 2002, we operated as a subsidiary of
Verizon, and did not operate as a separate, stand-alone entity. As a result, the historical financial information included in this report does not necessarily reflect what our financial position and results of operations would have been had we
operated as a separate, stand-alone entity during the periods presented.



The acquisition from Verizon was accounted for using the purchase method of accounting. As a result, the acquisition has affected our results of operations in certain significant respects. The aggregate acquisition
costs, including the transaction costs, of approximately $808.6 million have been allocated to the tangible and intangible assets acquired and liabilities assumed by us based upon their respective fair values as of the acquisition date and have
resulted in a significant increase in our annual depreciation and amortization expense. Due to the effects of the increased borrowings to finance the acquisition, our interest expense has increased significantly in the periods following the
acquisition. In addition, due to the effects of the 10% dividend requirements of the Class B Preferred Units now outstanding, our net income attributable to common unitholders has been reduced.



On July 23, 2003, Syniverse Networks, Inc. (formerly TSI Telecommunication
Network Services Inc.) acquired Brience, Inc. by issuing 100,000 common units of Syniverse Holdings, LLC and merging Brience, Inc. with and into Syniverse Brience, LLC (formerly TSI Brience, LLC), a newly formed wholly owned subsidiary of Syniverse
Networks, Inc., with Syniverse Brience, LLC continuing as the surviving entity and a wholly owned subsidiary of Syniverse Networks, Inc.



At the time of the Brience, Inc. merger, funds associated with GTCR Golder Rauner, LLC had a controlling interest in both Brience, Inc. and Syniverse
Holdings, LLC. As a result, the transaction is accounted for as a combination of entities under common control, similar to a pooling of interests, whereby the assets and liabilities of Brience, Inc. were combined at their historical amounts as of
the date that GTCR Golder Rauner, LLC had control of both entities (February 14, 2002). For historical accounting purposes, the historical financial results of Brience, Inc. have only been combined for the periods during which Syniverse Holdings,
LLC and Brience, Inc. were under common control of funds associated with GTCR Golder Rauner, LLC. Accordingly, our historical consolidated financial statements have been restated to include the financial results of Brience, Inc. beginning on the
date when funds associated with GTCR Golder Rauner, LLC had common control of both entities (February 14, 2002). For the minority interest of Brience, Inc. not owned by GTCR Golder Rauner, LLC affiliates at the time of the combination, purchase
accounting has been applied. However, the effects of the fair value adjustments relating to this purchase accounting were deemed to be insignificant, and therefore, recorded at zero for purposes of our financial statements.



On December 19, 2003, Syniverse Technologies, Inc. acquired all the
outstanding shares of Softwright Holdings Limited for $775 cash and the assumption of liabilities of $1,268. The acquisition was accounted for using the purchase method of accounting, and hence the results of operations of Softwright have been
included since December 19, 2003.



Our consolidated financial
statements include the accounts of Syniverse Holdings, LLC (Syniverse LLC, formerly TSI Telecommunication Holdings LLC), Syniverse Holdings, Inc. (Syniverse Inc., formerly TSI Telecommunication Holdings Inc.), Syniverse Technologies, Inc.
(Syniverse, formerly TSI Telecommunication Services Inc.), Syniverse Finance, Inc. (Syniverse Finance, formerly TSI Finance Company), Syniverse Networks, Inc. (Syniverse Networks, formerly TSI Telecommunication Networks Inc.), Syniverse
Technologies, BV (formerly TSI Telecommunication Services, BV), and for periods beginning on and after February 14, 2002, Syniverse Brience, LLC (Syniverse Brience, formerly TSI Brience, LLC) and Softwright Holdings Limited (Softwright). All
significant intercompany balances and transactions have been eliminated.



23



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##### Table of Contents

Introduction



We provide a diverse set of services to meet the evolving requirements of the telecommunications industry. Our services are categorized into the following
groups:



| |  | Network Services - We provide our customers with connectivity to our SS7 network and other widely used communications networks (e.g., X.25, Frame Relay and IP). SS7 is the
telecommunication industrys standard network signaling protocol used by almost every carrier in North America to enable the setup and delivery of wireless and wireline telephone calls. A telephone call has two components: the call content
(e.g., voice, video or data) and the signaling information (e.g., caller information, number called and subscriber validation). SS7 is the transport network for this signaling information. We also provide Web-based analysis and reporting services,
allowing our customers to access real-time subscriber activity, monitor their networks, troubleshoot customer care issues and handle network management tasks seamlessly. In addition, use of our SS7 network facilitates access to intelligent network
services, such as local number portability (LNP), line information database (LIDB), toll-free database and Caller ID. Our primary services in this group are INLink, Visibility, the SS7 Database Access services, Inpack, and CCNS. We also offer
software and services that enable secure application and mobile data communication across multiple devices, software platforms, and networks. Mobile Processing Server (MPS) is an integrated software design and development environment for building
mobile solutions that provide a compelling user experience across multiple device form factors ranging from cell phones to PDAs.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Services - The Telecommunications Act of 1996 mandates number portability as a means to promote competition for phone service. Number portability means that a
subscriber can switch telephone service provider but retain the existing telephone number. Wireline carriers in the largest markets have offered number portability since 1998. After numerous delays and postponements, wireless carriers in the top 100
markets were required to offer wireless local number portability as of November 24, 2003. The implementation of WLNP fundamentally changed the way the wireless industry identifies phone numbers and routes calls. Additionally, porting a number from
one carrier to another is an exceedingly complex process that minimally requires eleven transactions or exchanges of information between carriers and between carriers and the Number Portability Administration Center (NPAC). Furthermore,
the method for porting a wireline number to a wireless phone is not standardized. We developed the industrys only end-to-end, fully integrated suite of services to enable wireless carriers to meet the FCC-mandated November 2003 deadline for
WLNP. Our suite of WLNP services address inter-carrier communication, communication with the NPAC and system and help desk troubleshooting that is necessary when ports fail, known as fallout. Our specific services include Pre-Port
Validation, Inter-carrier Communication (ICC) Service Order Activation (SOA) Service Bureau, Inter-carrier Communications (ICC) Clearinghouse, Wireline-to-Wireless Porting, Fallout Management/Port Center, and Workflow Management.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Services - We address technology interoperability complexities by acting as the primary point of contact for hundreds of wireless carriers for the
processing of roaming billing and short message service (SMS) transactions across substantially all network, signaling, billing and messaging standards. Our clearinghouse services have established us as the trusted third party for the collection,
translation and exchange of proprietary subscriber billing data and messages between carriers on a secure, confidential and timely basis. Our primary services in this group are ACCESS, ACCESS S&E, UniRoam, Access Revenue Management and Message
Management.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Call Processing Services - We offer telecommunication carriers comprehensive call processing services that employ advanced technologies to provide subscriber verification,
call delivery and technical fraud detection and prevention regardless of switch type, billing format or signaling standard. These services support seamless regional, national and international telephone roaming service for wireless subscribers. Our
primary services in this group are FraudManager, Follow Me Roaming Plus, Key Management Center and FraudX.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services - We provide other value-added outsourcing services including a telematics solution that enables trucking and distribution companies to track
vehicle location and improve fleet utilization and outsourced services that enhance carriers ability to manage and consolidate billing for their enterprise customer accounts. Our primary services in this group are STREAMLINER and
Fleet-On-Track.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Revenues



Our revenues are primarily derived from the sale of our Network Services,
Number Porting Services, Technology Interoperability Services and Call Processing Services to telecommunication providers throughout the world. To a lesser extent,



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##### Table of Contents

we also generate revenues from Other Outsourcing Services. In order to encourage greater usage, we negotiate tiered
pricing schedules with our customers based on certain established transaction volume levels. As a result, we expect the average price per transaction for many of our products to decline as customers increasingly use our services.



We believe there is minimal seasonality in our business. However, there is
generally a slight increase in wireless roaming telephone usage traffic and corresponding revenues in the high-travel months of the second and third fiscal quarters.



| |  | Network Services primarily generate revenue by charging per-transaction processing fees, circuit fees and port fees. The monthly SS7 connection fee is based on the number of
links as well as the number of switches to which a customer signals. The per-transaction fees are based on the number of subscriber events and database queries made through our network and are recognized as revenues at the time the transactions are
performed. Syniverse Briences software revenues are generated through license fees, maintenance agreements and professional services. License fee revenues consist principally of revenue from the licensing of our software and are generally
recognized when a contract is executed, all delivery obligations have been met, the fee is fixed or determinable, and collectibility is probable. Maintenance agreements call for us to provide technical support and software enhancements to customers.
Revenue on technical support and software enhancement rights is recognized ratably over the term of the support agreement. Professional services include consulting, training and installation services to our customers. Revenue from such services is
generally recognized on a straight-line basis over the same period as the software license fee.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Services primarily generate revenues by charging per-transaction processing fees, monthly fixed fees, and fees for customer implementations. We defer revenues
related to customer implementations, and recognize these fees on a straight-line basis over the life of the initial customer agreements. We recognize processing revenues at the time the transactions and services are performed.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Servicesprimarily generate revenues by charging per-transaction processing fees. For our wireless roaming, wireline and SMS clearinghouse
services, revenues vary based on the number of data/messaging records provided to us by telecommunications carriers for aggregation, translation and distribution among carriers. These records are based on the number of wireless roaming subscriber
telephone calls and messages that take place on our customers networks. We recognize revenues at the time the transactions are performed.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Call Processing Services primarily generate revenue by charging per-transaction processing fees and software licensing fees. The per-transaction fee is based on the number of
validation, authorization, and other call processing messages generated by wireless subscribers. Syniverse also provides turnkey software solutions for which it charges customers a software licensing fee. For turnkey software, we recognize revenue
when accepted by the customer.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services primarily generate revenue by charging per-subscriber fees. We recognize revenues at the time the service is performed.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



Costs and Expenses



Our costs and expenses consist of cost of operations, sales and marketing, general and administrative, and depreciation and
amortization.



| |  | Cost of operations includes processing costs, network costs, royalty costs, personnel costs associated with service implementation, training and customer care, and
off-network database query charges.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Sales and marketing includes personnel costs, advertising costs, trade show costs and relationship marketing costs.
| | - | -------------------------------------------------------------------------------------------------------------------



| |  | General and administrative consists primarily of research and development expenses, a portion of the expenses associated with our facilities, internal management expenses,
business development expenses, and expenses for finance, legal, human resources and other administrative departments. In addition, we incur significant service development costs. These costs, which are primarily personnel, relate to technology
creation, enhancement and maintenance of new and existing services. Historically, most of these costs are expensed and recorded as general and administrative expenses. The capitalized portion, which is recorded as capitalized software costs, relates
to costs incurred during the application development stage for the new service offerings and significant service enhancements.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



25



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##### Table of Contents

| |  | Depreciation and amortization relates primarily to our property and equipment including SS7 network and our intangible assets including capitalized software and
infrastructure facilities related to information management, research and development and customer care. Beginning in 2004, we will also have amortization related to certain intangible assets established in our purchase accounting for Softwright.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Results of Operations



Our results before and after February 14, 2002 are not generally comparable
due to the effects of purchase accounting. However, to aid in the comparison to the twelve months ended December 31, 2002, we have combined the period from January 1, 2002 to February 13, 2002 and the period from February 14, 2002 to December 31,
2002 and included explanations about the effects of purchase accounting. The full twelve months ended December 31, 2002 are referred to as combined herein.



The following table presents an overview of our results of operations for the years ended December 31, 2002 and 2003:



|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|-------------------------------------------------------------------------- |  | ---------------------------------------- | ------ | - | ------------- | ----- | - | ------------------------------------------ | - | ------- | -------------------- |  | ----- | ---------------------------- |  | - | ------------- | - |  | ----- | -- |  | - | ------- | - |  | ------ | --
|                                                                           |  | Predecessor                              |        |   | Successor     |       |   | Successor                                  |   |         | 2002 vs. 2003 Change | 
|                                                                           |  | Period fromJanuary 1 toFebruary 13, 2002 |        |   | % of Revenues |       |   | Period fromFebruary 14 toDecember 31, 2002 |   |         | % of Revenues        |  |       | Year Ended December 31, 2003 |  |   | % of Revenues |   | 
|                                                                           |  |                                          |        |   |               |       | $ |                                            |   | %       |                     
|Revenues:                                                                  |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Off-Network Database Query Fees                                            |  | $                                        | 8,588  |   |               | 21.5  | % |                                            | $ | 61,117  |                      |  | 20.6  | %                            |  | $ | 29,529        |   |  | 10.9  | %  |  | $ | (40,176 | ) |  | (57.6  | )%
|Other Network Services                                                     |  |                                          | 14,103 |   |               | 35.2  | % |                                            |   | 99,647  |                      |  | 33.7  | %                            |  |   | 111,845       |   |  | 41.2  | %  |  |   | (1,905  | ) |  | (1.7   | )%
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Total Network Services                                                     |  |                                          | 22,691 |   |               | 56.7  | % |                                            |   | 160,764 |                      |  | 54.3  | %                            |  |   | 141,374       |   |  | 52.1  | %  |  |   | (42,081 | ) |  | (22.9  | )%
|Number Porting Services                                                    |  |                                          |       |   |               | 0.0   | % |                                            |   | 860     |                      |  | 0.3   | %                            |  |   | 5,469         |   |  | 2.0   | %  |  |   | 4,609   |   |  | 535.9  | % 
|                                                                           |  |                                          |        |   |               |       |   |                                           
|Technology Interoperability Services                                       |  |                                          | 8,464  |   |               | 21.2  | % |                                            |   | 70,215  |                      |  | 23.7  | %                            |  |   | 66,536        |   |  | 24.5  | %  |  |   | (12,143 | ) |  | (15.4  | )%
|Call Processing Services                                                   |  |                                          | 6,429  |   |               | 16.1  | % |                                            |   | 46,336  |                      |  | 15.7  | %                            |  |   | 42,764        |   |  | 15.8  | %  |  |   | (10,001 | ) |  | (19.0  | )%
|Other Outsourcing Services                                                 |  |                                          | 2,412  |   |               | 6.0   | % |                                            |   | 17,869  |                      |  | 6.0   | %                            |  |   | 15,265        |   |  | 5.6   | %  |  |   | (5,016  | ) |  | (24.7  | )%
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Total revenues                                                             |  | $                                        | 39,996 |   |               | 100.0 | % |                                            | $ | 296,044 |                      |  | 100.0 | %                            |  | $ | 271,408       |   |  | 100.0 | %  |  | $ | (64,632 | ) |  | (19.2  | )%
|Costs and expenses:                                                        |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Cost of operations                                                         |  |                                          | 20,655 |   |               | 51.6  | % |                                            |   | 130,364 |                      |  | 44.0  | %                            |  |   | 109,744       |   |  | 40.4  | %  |  |   | (41,275 | ) |  | (27.3  | )%
|Sales and marketing                                                        |  |                                          | 2,614  |   |               | 6.5   | % |                                            |   | 22,706  |                      |  | 7.7   | %                            |  |   | 18,631        |   |  | 6.9   | %  |  |   | (6,689  | ) |  | (26.4  | )%
|General and administrative                                                 |  |                                          | 3,001  |   |               | 7.6   | % |                                            |   | 42,630  |                      |  | 14.4  | %                            |  |   | 39,881        |   |  | 14.7  | %  |  |   | (5,750  | ) |  | (12.6  | )%
|Provision for (recovery of) uncollectible accounts                         |  |                                          | 1,340  |   |               | 3.3   | % |                                            |   | (693    | )                    |  | (0.2  | )%                           |  |   | 466           |   |  | 0.2   | %  |  |   | (181    | ) |  | (28.0  | )%
|Depreciation and amortization                                              |  |                                          | 1,464  |   |               | 3.7   | % |                                            |   | 33,285  |                      |  | 11.2  | %                            |  |   | 37,319        |   |  | 13.8  | %  |  |   | 2,570   |   |  | 7.4    | % 
|Restructuring                                                              |  |                                          |       |   |               | 0.0   | % |                                            |   | 2,845   |                      |  | 1.0   | %                            |  |   | 2,164         |   |  | 0.8   | %  |  |   | (681    | ) |  | (23.9  | )%
|Impairment losses on intangible assets                                     |  |                                          |       |   |               | 0.0   | % |                                            |   |        |                      |  | 0.0   | %                            |  |   | 53,712        |   |  | 19.7  | %  |  |   | 53,712  |   |  | 100.0  | % 
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|                                                                           |  |                                          | 29,074 |   |               | 72.7  | % |                                            |   | 231,137 |                      |  | 78.1  | %                            |  |   | 261,917       |   |  | 96.5  | %  |  |   | 1,706   |   |  | 0.7    | % 
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Operating income                                                           |  |                                          | 10,922 |   |               | 27.3  | % |                                            |   | 64,907  |                      |  | 21.9  | %                            |  |   | 9,491         |   |  | 3.5   | %  |  |   | (66,338 | ) |  | (87.5  | )%
|                                                                           |  |                                          |        |   |               |       |   |                                           
|Other income (expense), net:                                               |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Interest income                                                            |  |                                          | 432    |   |               | 1.1   | % |                                            |   | 965     |                      |  | 0.4   | %                            |  |   | 768           |   |  | 0.3   | %  |  |   | (629    | ) |  | (45.0  | )%
|Interest expense                                                           |  |                                          |       |   |               | 0.0   | % |                                            |   | (54,105 | )                    |  | (18.3 | )%                           |  |   | (58,128       | ) |  | (21.4 | )% |  |   | (4,023  | ) |  | 7.4    | % 
|Other, net                                                                 |  |                                          | (19    | ) |               | 0.0   | % |                                            |   | (275    | )                    |  | (0.1  | )%                           |  |   |              |   |  | 0.0   | %  |  |   | 294     |   |  | (100.0 | )%
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|                                                                           |  |                                          | 413    |   |               | 1.0   | % |                                            |   | (53,415 | )                    |  | (18.0 | )%                           |  |   | (57,360       | ) |  | (21.1 | )% |  |   | (4,358  | ) |  | 8.2    | % 
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Income (loss) from continuing operations before provision for income taxes |  |                                          | 11,335 |   |               | 28.3  | % |                                            |   | 11,492  |                      |  | 3.9   | %                            |  |   | (47,869       | ) |  | (17.6 | )% |  |   | (70,696 | ) |  | (309.7 | )%
|Provision for income taxes                                                 |  |                                          | 4,418  |   |               | 11.0  | % |                                            |   | 9,320   |                      |  | 3.2   | %                            |  |   | 10,057        |   |  | 3.7   | %  |  |   | (3,681  | ) |  | (26.8  | )%
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Income (loss) from continuing operations                                   |  |                                          | 6,917  |   |               | 17.3  | % |                                            |   | 2,172   |                      |  | 0.7   | %                            |  |   | (57,926       | ) |  | (21.3 | )% |  |   | (67,015 | ) |  | (737.3 | )%
|Loss from discontinued operations                                          |  |                                          |       |   |               | 0.0   | % |                                            |   | (1,541  | )                    |  | (0.5  | )%                           |  |   |              |   |  | 0.0   | %  |  |   | 1,541   |   |  | (100.0 | )%
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Net income (loss)                                                          |  |                                          | 6,917  |   |               | 17.3  | % |                                            |   | 631     |                      |  | 0.2   | %                            |  |   | (57,926       | ) |  | (21.3 | )% |  |   | (65,474 | ) |  | (867.4 | )%
|Preferred unit dividends                                                   |  |                                          |       |   |               | 0.0   | % |                                            |   | (22,952 | )                    |  | (7.7  | )%                           |  |   | (28,581       | ) |  | (10.6 | )% |  |   | (5,629  | ) |  | 24.5   | % 
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   
|Net income (loss) attributable to common shareholders/unitholders          |  | $                                        | 6,917  |   |               | 17.3  | % |                                            | $ | (22,321 | )                    |  | (7.5  | )%                           |  | $ | (86,507       | ) |  | (31.9 | )% |  | $ | (71,103 | ) |  | 461.6  | % 
|                                                                           |  |                                          |        |   |               |       |   |                                            |   |         |                      |  |       |                              |  |   |               |   |  |       |    |  |   |         |   |  |        |   



26



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Comparison of the year ended December 31, 2003, the period from January 1, 2002 to February 13,
2002 and the period from February 14, 2002 to December 31, 2002



As described above, our results before and after February 14, 2002 are not generally comparable due to the effects of purchase accounting.



The historical financial results of Syniverse Brience, from February 14, 2002, which is the date that GTCR Fund VII, L.P.
and its affiliates possessed common control of us and Syniverse Brience, through July 23, 2003, which is the date that we acquired Syniverse Brience, are included in our financial results for the applicable periods because this acquisition is
accounted for as a combination of entities under common control, similar to a pooling of interests.



Total revenues were $271.4 million for 2003 as compared to combined revenues of $336.0 million for 2002, which is the total of the revenues for the period
from January 1, 2002 to February 13, 2002 and the period from February 14, 2002 to December 31, 2002. The decrease of $64.6 million was due to declines in each revenue category except Number Porting Services for 2003, as compared to combined 2002.



Network Services revenues were $141.4 million
(including $29.5 million of Off-Network Database Query Fees) for 2003 as compared to combined revenues of $183.5 million (including $69.7 million of Off-Network Database Query Fees) for 2002. The decrease of $42.1 million was primarily due to $40.2
million less of lower Off-Network Database Query Fees and lower Visibility Services volumes offset by increases in our network transport product and other SS7 services. The decrease in Off-Network Database Queries was driven by customers moving to
direct billing arrangements with third party database providers. As a service to our customers, we have offered the ability to be billed through us for database dips with third party providers. This cost was passed through to our customers with
little or no margin.



Number Porting Servicesrevenues
were $5.5 million for 2003, which includes wireless number pooling, porting and amortization of deferred implementation fees. Due to the November 24, 2003 WLNP implementation date, our 2003 results include only five weeks of revenue from the WLNP
products.



Technology Interoperability Services
revenues were $66.5 million for 2003 as compared to combined revenues of $78.7 million for 2002. The decrease of $12.2 million is primarily due to lower volumes from our Access Revenue Management product due to the termination of an agreement with
Adelphia Business Systems in 2003 and to lower revenues due to contract renewals for certain customers at lower rates. This is offset by increases in our Access S&E product, which is used for GSM settlement.



Call Processing Services revenues were $42.8 million for 2003 as
compared to combined revenues of $52.8 million for 2002. The decrease of $10.0 million is due to the expected lifecycle migration by carriers who are moving off our call processing platform to implement SS7 connections between their own
networks and their roaming partners networks. We expect this migration to be accelerated by the complexities associated with WLNP, which requires carriers to use more advanced technology.



Other Outsourcing Services revenues were $15.3 million for 2003 as
compared to combined revenues of $20.3 million for 2002. The decrease of $5.0 million is primarily due to a customer moving off our prepaid wireless solution. We do not plan to continue offering this prepaid wireless service in 2004 and beyond.



Cost of operations was $109.7 million for the year
ended December 31, 2003. Cost of operations was $20.7 million in the period from January 1, 2002 to February 13, 2002 and $130.3 million in the period from February 14, 2002 to December 31, 2002. Combined cost of operations was $151.0
million for the year ended December 31, 2002. The decrease of $41.3 million for 2003 as compared to combined 2002 was primarily due to lower Off-Network Database Query Fees and the workforce restructurings that occurred in April and August of
2002 and February and July 2003. Cost of operations as a percentage of revenues were 40.4% in the year ended December 31, 2003, as compared to 51.6% in the period from January 1, 2002 to February 13, 2002, and 44.0% in the period from February 14,
2002 to December 31, 2002 for a combined total of 44.9% in the period from January 1, 2002 to December 31, 2002.



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Sales and marketing expenses were $18.6 million for the year ended December 31, 2003. Sales and
marketing expenses were $2.6 million in the period from January 1, 2002 to February 13, 2002 and $22.7 million in the period from February 14, 2002 to December 31, 2002. Combined sales and marketing expenses were $25.3 million for the year ended
December 31, 2002. The decrease of $6.7 million for 2003 as compared to combined 2002 was due to lower headcount and employee-related expenses within the sales and marketing organization resulting from the reductions in the workforce in April and
August of 2002 and February and July 2003. Sales and marketing expenses as a percentage of revenues were 6.9% in the year ended December 31, 2003, as compared to 6.5% in the period from January 1, 2002 to February 13, 2002 and 7.7% in the period
from February 14, 2002 to December 31, 2002 for a combined total of 7.5% in the period from January 1, 2002 to December 31, 2002.



General and administrative expenses were $39.9 million for the year ended December 31, 2003. General and administrative expenses were $3.0 million
in the period from January 1, 2002 to February 13, 2002 and $42.6 million in the period from February 14, 2002 to December 31, 2002. Combined general and administrative expenses were $45.6 million for the year ended December 31, 2002. The decrease
of $5.7 million for 2003 as compared to combined 2002 was due to lower development expenses, and reductions in our workforce in April and August of 2002, and February and July 2003. General and administrative expenses as a percentage of revenue were
14.7% in the year ended December 31, 2003, as compared to 7.6% in the period from January 1, 2002 to February 13, 2002 and 14.4% in the period from February 14, 2002 to December 31, 2002 for a combined total of 13.6% in the period from January 1,
2002 to December 31, 2002.



Provision for (recovery of)
uncollectible accounts was $0.4 million for the year ended December 31, 2003. Provision for (recovery of) uncollectible accounts was $1.3 million in the period from January 1, 2002 to February 13, 2002 and ($0.7) million in the period from
February 14, 2002 to December 31, 2002. Combined provision for (recovery of) uncollectible accounts was $0.6 million for the year ended December 31, 2002. The decrease of $0.2 million for 2003 as compared to combined 2002 was due to decreases for
certain accounts and decreases in the general reserve due to a lower number of bankruptcies. Provision for (recovery of) uncollectible accounts as a percentage of revenue were 0.2% in the year ended December 31, 2003, as compared to 3.3% in the
period from January 1, 2002 to February 13, 2002 and (0.2)% in the period from February 14, 2002 to December 31, 2002 for a combined total of 0.2% in the period from January 1, 2002 to December 31, 2002.



Depreciation and amortization expenses were $37.3 million for the year
ended December 31, 2003. Depreciation and amortization expenses were $1.4 million in the period from January 1, 2002 to February 13, 2002 and $33.3 million in the period from February 14, 2002 to December 31, 2002. Combined depreciation and
amortization expense were $34.7 million for the year ended December 31, 2002. The increase of $2.6 million for 2003 as compared to combined 2002 was due to higher depreciation and amortization expenses related to the February 14, 2002 asset
revaluation to fair values as a result of purchase accounting associated with the GTCR acquisition of Syniverse. Depreciation and amortization expenses as a percentage of revenue were 13.8% in the year ended December 31, 2003, as compared to 3.7% in
the period from January 1, 2002 to February 13, 2002 and 11.2% in the period from February 14, 2002 to December 31, 2002 for a combined total of 10.3% in the period from January 1, 2002 to December 31, 2002.



Restructuringexpenses were $2.1 million in the year ended December
31, 2003. Restructuring expenses were $2.8 million in the period from February 14, 2002 to December 31, 2002. This resulted in a decrease of $0.7 million for 2003 as compared to combined 2002. On February 28, 2003, we completed a restructuring plan,
resulting in the termination of 71 employees or approximately 10.6% of our workforce. As a result, we accrued $1.8 million in severance related costs in February 2003. In July 2003, we recorded an additional restructuring expense of $0.6 million
related to terminations made at the time of our acquisition of Brience. Restructuring expenses as a percentage of revenue were 0.8% in the year ended December 31, 2003, as compared to 0.0% in the period from January 1, 2002 to February 13, 2002 and
1.0% in the period from February 14, 2002 to December 31, 2002 for a combined total of 0.8% in the period from January 1, 2002 to December 31, 2002.



Impairment losses on intangible assets. Due to the re-branding and re-naming of Syniverse Technologies effective March 1, 2004, we recognized
impairment losses of $51.0 million related to the TSI Telecommunication Services Inc. trademark and $2.7 million related to capitalized software write-offs arising primarily due to the discontinuation of prepaid wireless services. Impairment losses
on intangible assets as a percentage of revenues were 19.7% for 2003. There were no impairment losses in combined 2002.



Interest income was $0.8 million for the year ended December 31, 2003. Interest income was $0.4 million in the period from January 1, 2002 to
February 13, 2002 and $1.0 million in the period from February 14, 2002 to December 31, 2002. Combined interest income was $1.4 million for the year ended December 31, 2002. The decrease of $0.6 million for 2003 as compared to combined 2002 was due
to the extinguishment of the note receivable from Verizon in February 2002, offset by improved collections from our customers in 2003 increasing our cash balances. Interest income as a percentage of revenue was 0.3% for the year ended December 31,
2003, as compared to 1.1% in the period from January 1, 2002 to February 13, 2002 and 0.4% in the period from February 14, 2002 to December 31, 2002, for a combined total interest income of 0.4% of revenue in the period from January 1, 2002 to
December 31, 2002.



Interest
expense was $58.1 million for the year ended December 31, 2003. There was no interest expense in the period from January 1, 2002 to February 13, 2002. Interest expense was $54.1 million in the period from February 14, 2002 to December 31, 2002.
The decrease of $4.0 million for 2003 as compared to combined 2002 was primarily due to a lower principal balance on the senior credit facility. Interest expense as a percentage of revenue was 21.4% in the year ended December 31, 2003, as compared
to 0.0% in the period from January 1, 2002 to February 13, 2002 and 18.3% in the period from February 14, 2002 to December 30, 2002 for a combined total interest expense of 16.1% of revenue in the period from January 1, 2002 to December 31, 2002.



Provision for income taxes was $10.1 million for the
year ended December 31, 2003. Provision for income taxes was $4.4 million in the period from January 1, 2002 to February 13, 2002 and $9.3 million in the period from February 14, 2002 to December 31, 2002. Combined provision for income taxes was
$13.7 million for the year ended December 31, 2002. The decrease of $3.6 million for 2003 as compared to combined 2002 was primarily due to the large book loss in 2003, primarily attributable to the impairment losses. SFAS No. 109, Accounting
for Income Taxes, requires a valuation allowance to reduce the deferred tax assets reported if, based upon the weight of evidence, its more likely than not that some portion or all of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences and NOLs (net operating losses) become deductible or are utilized. Primarily as a result of our
impairment loss in the fourth quarter of 2003, we concluded that it was appropriate to establish a full valuation allowance against our net deferred tax assets, excluding goodwill, resulting in a net tax expense of $10.1 million. The deferred tax
assets arise primarily from accumulated federal and state net operating losses of approximately $113,413 and $230,042, respectively, which expire between 2006 and 2022. These losses relate primarily to Briences operations in periods prior to
the February 14, 2002 date when those results have been included in our financial statements. In addition, because we do not amortize goodwill for financial reporting purposes, we are unable to consider the associated deferred tax liabilities of
approximately $19.3 million in this analysis. Provision for income taxes as a percentage of revenue was 3.7% in the year ended December 31, 2003, as compared to 11.0% in the period from January 1, 2002 to February 13, 2002 and 3.2% in the period
from February 14, 2002 to December 30, 2002, for a combined total of 4.1% in the period from January 1, 2002 to December 31, 2002.



Loss on discontinued operations was $1.5 million for the period from February 14, 2002 to December 31, 2002. This loss is due to Briences
decision to divest the Hello Asia subsidiary in July 2001. Loss on discontinued operations as a percentage of revenues was 0.5% for 2002. There were no discontinued operations in 2003.



Undeclared and unpaid preferred unit dividends were $23.0 million in the period from February 14, 2002 to December 31, 2002.
Undeclared and unpaid preferred unit dividends were $28.6 million for the year ended December 31, 2003. The preferred unit dividends relate to the 10% preferred yield on the Class B preferred units issued on February 14, 2002. These dividends
compound quarterly. The amounts are not recorded as liabilities until declared.



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##### Table of Contents

The following table presents an overview of our results of operations for the years ended December 31,
2001 and 2002:



|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|------------------------------------------------------------------- | -------------------------- | ----------- | ------- | ------------ | --------- | ----- | --------------------------------------- | ------------------- | - | ------------ | - |  | ----------------------------------------- | -- |  | ------------ | ------- | - |  | ----- | -- |  | - | ------- | - |  | ------- | --
|                                                                    |                            | Predecessor |         |              | Successor |       |                                         | 2001 vs. 2002Change |  
|                                                                    | Year EndedDecember 31,2001 |             |         | % ofRevenues |           |       | Period fromJanuary 1 toFebruary 13,2002 |                     |   | % ofRevenues |   |  | Period fromFebruary 14 toDecember 31,2002 |    |  | % ofRevenues |         |  
|                                                                    |                            |             |         |              |           |       | $                                       |                     |   | %            |  
|Revenues:                                                           |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Off-Network Database Query Fees                                     |                            | $           | 69,117  |              |           | 19.1  | %                                       |                     | $ | 8,588        |   |  | 21.5                                      | %  |  | $            | 61,117  |   |  | 20.6  | %  |  | $ | 588     |   |  | 0.9     | % 
|Other Network Services                                              |                            |             | 105,369 |              |           | 29.2  | %                                       |                     |   | 14,103       |   |  | 35.2                                      | %  |  |              | 99,647  |   |  | 33.7  | %  |  |   | 8,381   |   |  | 8.0     | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Total Network Services                                              |                            |             | 174,486 |              |           | 48.3  | %                                       |                     |   | 22,691       |   |  | 56.7                                      | %  |  |              | 160,764 |   |  | 54.3  | %  |  |   | 8,969   |   |  | 5.1     | % 
|                                                                    |                            |             |         |              |           |       |                                         |                    
|Number Porting Services                                             |                            |             |        |              |           | 0.0   | %                                       |                     |   |             |   |  | 0.0                                       | %  |  |              | 860     |   |  | 0.3   | %  |  |   | 860     |   |  | 100.0   | % 
|Technology Interoperability Services                                |                            |             | 82,312  |              |           | 22.7  | %                                       |                     |   | 8,464        |   |  | 21.2                                      | %  |  |              | 70,215  |   |  | 23.7  | %  |  |   | (3,633  | ) |  | (4.4    | )%
|Call Processing Services                                            |                            |             | 65,241  |              |           | 18.1  | %                                       |                     |   | 6,429        |   |  | 16.1                                      | %  |  |              | 46,336  |   |  | 15.7  | %  |  |   | (12,476 | ) |  | (19.1   | )%
|Other Outsourcing Services                                          |                            |             | 39,319  |              |           | 10.9  | %                                       |                     |   | 2,412        |   |  | 6.0                                       | %  |  |              | 17,869  |   |  | 6.0   | %  |  |   | (19,038 | ) |  | (48.4   | )%
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Total revenues                                                      |                            | $           | 361,358 |              |           | 100.0 | %                                       |                     | $ | 39,996       |   |  | 100.0                                     | %  |  | $            | 296,044 |   |  | 100.0 | %  |  | $ | (25,318 | ) |  | (7.0    | )%
|                                                                    |                            |             |         |              |           |       |                                         |                    
|Costs and expenses:                                                 |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Cost of operations                                                  |                            |             | 169,025 |              |           | 46.8  | %                                       |                     |   | 20,655       |   |  | 51.6                                      | %  |  |              | 130,364 |   |  | 44.0  | %  |  |   | (18,006 | ) |  | (10.7   | )%
|Sales and marketing                                                 |                            |             | 24,348  |              |           | 6.7   | %                                       |                     |   | 2,614        |   |  | 6.5                                       | %  |  |              | 22,706  |   |  | 7.7   | %  |  |   | 972     |   |  | 4.0     | % 
|General and administrative                                          |                            |             | 41,245  |              |           | 11.4  | %                                       |                     |   | 3,001        |   |  | 7.6                                       | %  |  |              | 42,630  |   |  | 14.4  | %  |  |   | 4,386   |   |  | 10.6    | % 
|Provision for (recovery of) uncollectible accounts                  |                            |             | 2,207   |              |           | 0.6   | %                                       |                     |   | 1,340        |   |  | 3.3                                       | %  |  |              | (693    | ) |  | (0.2  | )% |  |   | (1,560  | ) |  | (70.7   | )%
|Depreciation and amortization                                       |                            |             | 15,203  |              |           | 4.2   | %                                       |                     |   | 1,464        |   |  | 3.7                                       | %  |  |              | 33,285  |   |  | 11.2  | %  |  |   | 19,546  |   |  | 128.6   | % 
|Restructuring                                                       |                            |             |        |              |           | 0.0   | %                                       |                     |   |             |   |  | 0.0                                       | %  |  |              | 2,845   |   |  | 1.0   | %  |  |   | 2,845   |   |  | 100.0   | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|                                                                    |                            |             | 252,028 |              |           | 69.7  | %                                       |                     |   | 29,074       |   |  | 72.7                                      | %  |  |              | 231,137 |   |  | 78.1  | %  |  |   | 8,183   |   |  | 3.2     | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Operating income                                                    |                            |             | 109,330 |              |           | 30.3  | %                                       |                     |   | 10,922       |   |  | 27.3                                      | %  |  |              | 64,907  |   |  | 21.9  | %  |  |   | (33,501 | ) |  | (30.6   | )%
|                                                                    |                            |             |         |              |           |       |                                         |                    
|Other income (expense), net:                                        |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Interest income                                                     |                            |             | 3,903   |              |           | 1.1   | %                                       |                     |   | 432          |   |  | 1.1                                       | %  |  |              | 965     |   |  | 0.4   | %  |  |   | (2,506  | ) |  | (64.2   | )%
|Interest expense                                                    |                            |             |        |              |           | 0.0   | %                                       |                     |   |             |   |  | 0.0                                       | %  |  |              | (54,105 | ) |  | (18.3 | )% |  |   | (54,105 | ) |  | 100.0   | % 
|Other, net                                                          |                            |             | (80     | )            |           | 0.0   | %                                       |                     |   | (19          | ) |  | (0.0                                      | )% |  |              | (275    | ) |  | (0.1  | )% |  |   | (214    | ) |  | 267.5   | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|                                                                    |                            |             | 3,823   |              |           | 1.1   | %                                       |                     |   | 413          |   |  | 1.0                                       | %  |  |              | (53,415 | ) |  | (18.0 | )% |  |   | (56,825 | ) |  | (1486.4 | )%
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Income from continuing operations before provision for income taxes |                            |             | 113,153 |              |           | 31.4  | %                                       |                     |   | 11,335       |   |  | 28.3                                      | %  |  |              | 11,492  |   |  | 3.9   | %  |  |   | (90,326 | ) |  | (79.8   | )%
|Provision for income taxes                                          |                            |             | 43,895  |              |           | 12.2  | %                                       |                     |   | 4,418        |   |  | 11.0                                      | %  |  |              | 9,320   |   |  | 3.2   | %  |  |   | (30,157 | ) |  | (68.7   | )%
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Income from continuing operations                                   |                            |             | 69,258  |              |           | 19.2  | %                                       |                     |   | 6,917        |   |  | 17.3                                      | %  |  |              | 2,172   |   |  | 0.7   | %  |  |   | (60,169 | ) |  | (86.9   | )%
|Loss from discontinued operations                                   |                            |             |        |              |           | 0.0   | %                                       |                     |   |             |   |  | 0.0                                       | %  |  |              | (1,541  | ) |  | (0.5  | )% |  |   | (1,541  | ) |  | 100.0   | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Net income                                                          |                            |             | 69,258  |              |           | 19.2  | %                                       |                     |   | 6,917        |   |  | 17.3                                      | %  |  |              | 631     |   |  | 0.2   | %  |  |   | (61,710 | ) |  | (89.1   | )%
|Preferred unit dividends                                            |                            |             |        |              |           | 0.0   | %                                       |                     |   |             |   |  | 0.0                                       | %  |  |              | (22,952 | ) |  | (7.7  | )% |  |   | (22,952 | ) |  | 100.0   | % 
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   
|Net income (loss) attributable to common shareholders/unitholders   |                            | $           | 69,258  |              |           | 19.2  | %                                       |                     | $ | 6,917        |   |  | 17.3                                      | %  |  | $            | (22,321 | ) |  | (7.5  | )% |  | $ | (84,662 | ) |  | (122.2  | )%
|                                                                    |                            |             |         |              |           |       |                                         |                     |   |              |   |  |                                           |    |  |              |         |   |  |       |    |  |   |         |   |  |         |   



Comparison of the year ended
December 31, 2001, the period from January 1, 2002 to February 13, 2002 and the period from February 14, 2002 to December 31, 2002



As described above, our results before and after February 14, 2002 are not generally comparable due to the effects of our purchase accounting on this
date.



The historical financial results of Syniverse Brience,
from February 14, 2002, which is the date that GTCR Fund VII, L.P. and its affiliates possessed common control of us and Syniverse Brience, through July 23, 2003, which is the date that we acquired Syniverse Brience, are included in our financial
results for the applicable periods because this acquisition was accounted for as a combination of entities under common control, similar to a pooling of interests.



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##### Table of Contents

Total combined revenues were $336.0 million for 2002, which is the total of the revenues for the period
from January 1, 2002 to February 13, 2002 and the period from February 14, 2002 to December 31, 2002, as compared to revenues of $361.4 million for 2001. The decrease of $25.4 million was due to increases in combined Network Services revenues for
2002 compared to the 2001, offset by decreases in Call Processing Services, Technology Interoperability and Other Outsourcing Services revenues.



Network Services revenues were $183.5 million (including $69.7 million of Off-Network Database Query Fees) for combined 2002 as compared to
revenues of $174.5 million (including $69.1 million of Off-Network Database Query Fees) for 2001. The increase of $9.0 million was primarily due increases in our network transport product and other SS7 services.



Technology Interoperability Services revenues were $78.7 million for
combined 2002 as compared to revenues of $82.3 million for 2001. The decrease of $3.6 million is primarily due to decreased volumes resulting from the loss of Cingular Wireless as a major customer for ACCESS. This decline was partially offset by
increases in our ARM and ACCESS S&E products.



Call
Processing Services revenues were $52.8 million for combined 2002 as compared to revenues of $65.2 million for 2001. The decrease of $12.4 million is due to the expected lifecycle migration by carriers who are moving off our call processing
platform to implement SS7 connections between their own networks and their roaming partners networks.



Other Outsourcing Services revenues were $20.3 million for combined 2002 as compared to revenues of $39.3 million for 2001. The decrease of $19.0
million is primarily due to the transition of our telematic services to Verizon, which was developed exclusively as an interim solution for Verizon, and lower prepaid wireless revenues due to a one-time sale in 2001.



Number Porting Services revenues were $0.9 million for combined 2002
and relate to wireless number porting.



Cost of
operations was $20.7 million in the period from January 1, 2002 to February 13, 2002 and $130.3 million in the period from February 14, 2002 to December 31, 2002. Combined cost of operations was $151.0 million for the year ended December 31,
2002. Cost of operations was $169.0 million for the year ended December 31, 2001. The decrease of $18.0 million for combined 2002 as compared to 2001 was primarily due to reduced pricing for data processing services and the workforce reductions that
occurred in April and August of 2002. Cost of operations as a percentage of revenues were 51.6% in the period from January 1, 2002 to February 13, 2002, and 44.0% in the period from February 14, 2002 to December 31, 2002 for a combined total of
44.9% in the twelve month period ended December 31, 2002, as compared to 46.8% in the year ended December 31, 2001.



Sales and marketing expenses were $2.6 million in the period from January 1, 2002 to February 13, 2002 and $22.7 million in the period from
February 14, 2002 to December 31, 2002. Combined sales and marketing expenses were $25.3 million for the year ended December 31, 2002. Sales and marketing expenses were $24.3 million for the year ended December 31, 2001. The increase of $1.0 million
for combined 2002 as compared to 2001 is primarily due to the inclusion of historical Brience results offset by lower headcount and employee-related expenses within the sales organization resulting from the reductions in workforce. Sales and
marketing expenses as a percentage of revenues were 6.5% in the period from January 1, 2002 to February 13, 2002 and 7.7% in the period from February 14, 2002 to December 31, 2002 for a combined total of 7.6% in the period from January 1, 2002 to
December 31, 2002, as compared to 6.7% in the period from January 1, 2001 to December 31, 2001.



General and administrative expenses were $3.0 million in the period from January 1, 2002 to February 13, 2002 and $42.6 million in the period from
February 14, 2002 to December 31, 2002. Combined general and administrative expenses were $45.6 million for the year ended December 31, 2002. General and administrative expenses were $41.2 million for the year ended December 31, 2001. The increase
of $4.4 million for combined 2002 as compared to 2001 is primarily due to the inclusion of historical Brience results offset by lower development expenses in addition to the reductions in workforce in April and August of 2002. General and
administrative expenses as a percentage of revenue were 7.6% in the period from January 1, 2002 to February 13, 2002 and 14.4% in the period from February 14, 2002 to December 31, 2002 for a combined total of 13.6% in the period from January 1, 2002
to December 31, 2002, as compared to 11.4% in the period from January 1, 2001 to December 31, 2001.



Provision for (recovery of) uncollectible account was $1.3 million in the period from January 1, 2002 to February 13, 2002 and ($0.7) million in
the period from February 14, 2002 to December 31, 2002. Combined provision for (recovery of) uncollectible accounts was $0.6 million for the year ended December 31, 2002. Provision for (recovery of) uncollectible accounts was $2.2 million for the
year ended December 31, 2001. The decrease of $1.6 million for combined 2002 as compared to 2001 is primarily due to lowered risk with our CLEC customers. Provision for (recovery of) uncollectible accounts as a percentage of revenue were 3.3% in the
period from January 1, 2002 to February 13, 2002 and (0.2%) in the period from February 14, 2002 to December 31, 2002 for a combined total of 0.2% in the period from January 1, 2002 to December 31, 2002, as compared to 0.6% in the period from
January 1, 2001 to December 31, 2001.



Depreciation and amortization expenses were $1.4 million in the period from January 1, 2002 to February 13, 2002 and $33.3 million in the period from February 14, 2002 to December 31,
2002. Combined depreciation and amortization expense were $34.7 million for the year ended December 31, 2002. Depreciation and amortization expenses were $15.2 million for the year ended December 31, 2001. The increase of $19.5 for combined 2002 as
compared to 2001 is primarily due to higher depreciation and amortization expenses related to the asset revaluation to fair values as a result of purchase accounting associated with the acquisition of Syniverse. Depreciation and amortization
expenses as a percentage of revenue were 3.7% in the period from January 1, 2002 to February 13, 2002 and 11.2% in the period from February 14, 2002 to December 31, 2002 for a combined total of 10.3% in the period from January 1, 2002 to December
31, 2002, as compared to 4.2% in the period from January 1, 2001 to December 31, 2001.



Restructuring. On August 29, 2002, we completed an additional restructuring resulting in the termination of 73 employees, or approximately 10% of the workforce at that time. As a result, we accrued $2.8 million
in severance related costs in August 2002. Restructuring expense as a percentage of revenue was 1.0% in the period from February 14, 2002 to December 31, 2002 for a combined total restructuring expense of 0.8% of revenue in the period from January
1, 2002 to December 31, 2002.



Interest income was $0.4
million in the period from January 1, 2002 to February 13, 2002 and $1.0 million in the period from February 14, 2002 to December 31, 2002. Combined interest income was $1.4 million for the year ended December 31, 2002. Interest income was $3.9
million for the year ended December 31, 2001. The decrease of $2.5 million for combined 2002 as compared to 2001 is primarily due to the extinguishment of the note receivable from Verizon in February 2002. Interest income as a percentage of revenue
was 1.1% in the period from January 1, 2002 to February 13, 2002 and 0.4% in the period from February 14, 2002 to December 31, 2002, for a combined total interest income of 0.4% of revenue in the period from January 1, 2002 to December 31, 2002,
down from 1.1% of revenue in the period from January 1, 2001 to December 31, 2001.



Interest expense. There was no interest expense in the period from January 1, 2002 to February 13, 2002. Interest expense was $54.1 million in the period from February 14, 2002 to December 31, 2002. There was
no interest expense in the year ended December 31, 2001. The increase of $54.1 million for combined 2002 as compared to 2001 is due to the issuance of debt in connection with the acquisition of Syniverse. Interest expense as a percentage of revenue
was 18.3% in the period from February 14, 2002 to December 31, 2002 for a combined total interest expense of 16.1% of revenue in the period from January 1, 2002 to December 31, 2002.



Provision for income taxes was $4.4 million in the period from January 1, 2002 to February 13, 2002 and $9.3 million
in the period from February 14, 2002 to December 31, 2002. Combined provision for income taxes was $13.7 million for the year ended December 31, 2002. Provision for income taxes was $43.9 million for the year ended December 31, 2001. The decrease of
$30.2 million for combined 2002 as compared to 2001 is primarily due to our lower net income due to higher net interest expense associated with the debt incurred in 2002 and higher depreciation and amortization expense in connection with our
acquisition. Provision for income taxes as a percentage of revenue was 11.0% in the period from January 1, 2002 to February 13, 2002 and 3.2% in the period from February 14, 2002 to December 31, 2002, for a combined total of 4.1% in the period from
January 1, 2002 to December 31, 2002, as compared to 12.2% in the period from January 1, 2001 to December 31, 2001.



The $23.0 million of undeclared and unpaid preferred unit dividends in the period from February 14, 2002 to December 31, 2002 relate to the 10% preferred
yield on the Class B preferred units issued on February 14, 2002. These dividends compound quarterly. The amounts are not recorded as liabilities until declared.



Restructurings



As part of our acquisition in February 2002, we developed a restructuring plan to react to competitive pressures and to increase operational efficiency.
The plan included the termination of approximately 78 employees in Tampa and Dallas,



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approximately 6% of our workforce, and closure of the Dallas office. As a result, we accrued $3.3 million of expenses in
relation to this plan as of February 14, 2002, including $2.9 million for severance related to the reduction in workforce and $0.4 million for costs to relocate existing employees. The payments related to this plan were incurred through the third
quarter of 2003. At the time of this announcement, we expected this plan to result in reduced annual expenses of approximately $10.3 million.



On August 29, 2002, we completed a restructuring plan resulting in the termination of 73 employees, approximately 10% of our workforce. As a result, we
accrued $2.8 million in severance-related costs in August 2002. The payments related to this restructuring were completed in May 2003. At the time of this announcement, we expected this reorganization to result in reduced annual expenses of
approximately $9.5 million.



On February 28, 2003, we completed
a restructuring plan resulting in the termination of 71 employees, approximately 10.6% of our workforce. As a result, we accrued $1.8 million in severance-related costs in February 2003. The payments related to this restructuring were completed in
November 2003. At the time of this announcement, we expected this reorganization to result in reduced annual expenses of approximately $5.8 million.



On July 23, 2003, we completed a restructuring plan related to our acquisition of Brience resulting in the termination of five employees. As a result, we
incurred $0.6 million in severance-related costs in July 2003. The payments related to this restructuring were incurred through September 2003. At the time of this announcement, we expected this reorganization to result in reduced annual expenses of
approximately $0.8 million.



As of December 31, 2003, all
payments for these four restructuring plans costs had been completed. Further restructuring may be necessary in light of current economic conditions.



Liquidity and Capital Resources



During the year ended December 31, 2003, our operations generated $48.4 million of cash compared to $61.0 million for the comparable period in 2002. The
decrease is primarily attributable to increased interest payments made in the year ended December 31, 2003. Cash and cash equivalents were $8.3 million at December 31, 2003 as compared to $42.2 million at December 31, 2002. This decrease was
due primarily to the payment of our $37.3 million excess cash sweep required under our credit facility in March of 2003. A similar excess cash sweep payment of $3.0 will be required in March of 2004. Our working capital decreased $8.7 million,
from $7.2 million at December 31, 2002 to $(1.5) million at December 31, 2003. This decrease in working capital is primarily due to the increase in scheduled debt amortizations required by our credit facility in 2004. Capital expenditures for
property and equipment, including capitalized software costs, increased from $12.9 million for the year ended December 31, 2002 to $18.3 million for the year ended December 31, 2003. Dividends paid to Verizon, excluding non-cash distributions, were
$11.3 million in 2002.



During the combined year ended December
31, 2002, our operations generated $61.0 million of cash compared to $131.3 million for the comparable period in 2001. The decrease is primarily attributable to income tax payments made during the period from January 1, 2002 to February 13, 2002,
the payment of closing costs related to the Syniverse acquisition, the inclusion of historical Syniverse Brience results and interest payments and debt service payments made during the period February 14, 2002 to December 31, 2002. Cash and cash
equivalents were $42.2 million at December 31, 2002 as compared to $0.3 million at December 31, 2001, since we participated in a cash sweep program with Verizon prior to the acquisition. Our working capital decreased $99.4 million, from $106.7
million at December 31, 2001 to $7.2 million at December 31, 2002, primarily due to the elimination of the note receivable from Verizon at the acquisition date, the current portion of term note B and higher transition-related expense accruals.
Capital expenditures for property and equipment, including capitalized software costs, increased from $10.4 million for the year ended December 31, 2001 to $12.9 million for the combined year ended December 31, 2002. Dividends paid to Verizon,
excluding non-cash distributions, were $11.3 million in 2002 and $33.8 million in 2001.



We have also used off-balance sheet financing in recent years primarily in the form of operating leases for facility space and some equipment leasing and we expect this will continue.



For fiscal 2003, we spent approximately $18.3 million for capital
expenditures, primarily for investment in Wireless Local Number Portability (WLNP) and our SS7 network expansion. We expect that capital expenditures for fiscal 2004 will be approximately the same amount.



In February 2002, we sold Syniverse LLC Preferred and Common Units for
approximately $255.3 million. The sales were nonpublic offerings by Syniverse LLC, and therefore exempt from registration, pursuant to Section 4(2) of the Securities Act of 1933, as amended. The proceeds of the offering were used to finance the
purchase of the company from Verizon.



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In February 2002, we sold $245 million principal amount of our 12.75% Senior Subordinated Notes due 2009
in a private placement. Net proceeds from this offering were approximately $239.6 million. The proceeds of the offering were used to finance the purchase of Syniverse from Verizon.



In February 2002, we entered into a senior credit facility, which provides for aggregate borrowings by Syniverse of up to
$328.3 million maturing December 2006. The facility is comprised of a revolving credit facility of up to $35.0 million in revolving credit loans and letters of credit with the funds available for general corporate purposes including working capital,
capital expenditures, acquisitions and a term loan B facility of $293.3 million in term loans. The revolving line of credit and the term note each bear interest at variable rates either on a LIBOR or an alternative base rate option. We received net
proceeds of $275.0 million on $293.3 million principal amount of term loan B facility and drew $5.4 million from the revolving credit facility. These proceeds were used to finance the purchase of the company from Verizon.



In May 2002, we repaid $5.4 million of the outstanding revolving credit
facility. Draws and repayments are made against the revolving credit facility as needed. As of December 31, 2003 there was $35.0 million available under the revolving credit facility.



We have significant debt service payment obligations, including interest, in future years. Total cash interest payments
related to our revolving credit facility, term B loan and our senior notes were $30.2 million in 2002 and $46.2 million in the year ended December 31, 2003. During 2002, we made $15.0 million in scheduled principal payments on term loan B. In the
year ended December 31, 2003, we made a $37.3 million excess cash flow payment and $19.8 million in scheduled principal payment obligations on this indebtedness, and a $5.0 million prepayment on the term loan B. Our outstanding debt has principal
payment schedules requiring payments over a five and seven-year period for the term loan B and the senior notes, respectively. The following are the combined principal payment obligations on this indebtedness: $37.2 million in 2004, $44.0 million in
2005 and $135.1 million in 2006. In addition, we are required to prepay amounts outstanding under the senior credit facility in an amount equal to 75% of the excess cash flow, as defined in the senior credit facility, for each fiscal year.



The senior credit facility contains various restrictive
covenants which we amended in September 2003. It prohibits us from prepaying other indebtedness, including the senior notes, and it requires us to maintain specified financial ratios, such as a minimum ratio of pro forma EBITDA to interest expense,
a minimum fixed charge coverage ratio, a maximum ratio of senior debt to pro forma EBITDA and a maximum ratio of total debt to pro forma EBITDA, and satisfy other financial condition tests including limitations on capital expenditures. In addition,
the senior credit facility prohibits us from declaring or paying any dividends and prohibits us from making any payments with respect to the senior notes if we fail to perform our obligations under, or fail to meet the conditions of, the senior
credit facility or if payment creates a default under the senior credit facility. We are in compliance with all covenants as of December 31, 2003.



On September 25, 2003, we entered into the First Amendment to Credit Agreement (the First Amendment) with our term note B and revolving credit
lenders signatory thereto and Lehman Commercial Paper Inc., as administrative agent for the lenders (the Agent). The First Amendment amends our senior credit facility. The First Amendment provides for changes in the financial covenants
that (i) increase the maximum consolidated leverage and consolidated senior debt ratios, (ii) reduce the minimum consolidated interest coverage ratios beginning with the third and fourth fiscal quarters of 2003 and the four fiscal quarters of 2004,
2005 and beyond and (iii) reduce the minimum consolidated fixed charge coverage ratio. In addition, the First Amendment increases the permitted level of capital expenditures for fiscal years 2004 and 2005. The First Amendment also evidences the
agreement of the lenders that, notwithstanding any contrary accounting treatment under GAAP necessitated by the acquisition of Brience on July 23, 2003, the consolidated net income and consolidated EBITDA of Brience prior to July 23, 2003 will be
excluded from any determination of consolidated net income or consolidated EBITDA of Syniverse LLC and its subsidiaries for purposes of our senior credit facility.



On March 11, 2004, we entered into the Second Amendment to Credit Agreement (the Second Amendment) with our
lenders (Term Loan B and Revolving Credit) signatory thereto and Lehman Commercial Paper Inc., as administrative agent for the lenders (the Agent). The Second Amendment is effective March 11, 2004 and amends our senior credit facility by
(i) providing for the incurrence under our senior credit facility of new Additional Tranche B Term Loans, which will refinance, in full, all remaining outstanding Tranche B Term Loans and (ii) reduces the percentage of Excess Cash Flow which must be
applied to prepay the loans to 75%. The Applicable Margin with respect to Additional Tranche B Term Loans is 2.5% for Base Rate Loans and 3.5% for Eurodollar Loans.



The indenture governing the senior notes, among other things: (i) restricts our ability and the ability of our subsidiaries
to incur additional indebtedness, issue shares of preferred stock, incur liens, pay dividends or make certain other restricted payments and enter into certain transactions with affiliates; (ii) prohibits certain restrictions on the ability of
certain of our subsidiaries to pay dividends or make certain payments to us; and (iii) places restrictions on our ability and the ability of our subsidiaries to merge or consolidate with any other person or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of our assets. The indenture related to these notes and the senior credit facility also contains various covenants which limit our discretion in the operation of our businesses.



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Our principal source of liquidity will be cash flow generated from operations and borrowings under our
senior credit facility. Our principal use of cash will be to meet debt service requirements, finance our capital expenditures, make acquisitions and provide working capital. We expect that cash available from operations combined with the
availability of $35.0 million under our revolving line of credit will be sufficient to fund our operations, debt service and capital expenditures for at least the next 12 months.



Our ability to make payments on and to refinance our debt and to fund planned capital expenditures will depend on our
ability to generate sufficient cash in the future. This, to some extent, is subject to general economic, financial, competitive and other factors that are beyond our control. We believe that, based upon current levels of operations, we will be able
to meet our debt service obligations when due. Significant assumptions underlie this belief, including, among other things, that we will continue to be successful in implementing our business strategy and that there will be no material adverse
developments in our business, liquidity or capital requirements. If our future cash flow from operations and other capital resources are insufficient to pay our obligations as they mature or to fund our liquidity needs, we may be forced to reduce or
delay our business activities and capital expenditures, sell assets, obtain additional debt or equity capital or restructure or refinance all or a portion of our debt on or before maturity. We cannot assure you that we would be able to accomplish
any of these alternatives on a timely basis or on satisfactory terms, if at all. In addition, the terms of our existing and future indebtedness, including the senior notes and our senior credit facility, may limit our ability to pursue any of these
alternatives.



Effect of Inflation



Inflation generally affects us by increasing our cost of labor, equipment
and new materials. We do not believe that inflation has had any material effect on our results of operations during the years ended December 31, 2002 and 2003.



Non-GAAP Financial Measures



Adjusted EBITDA



We determine adjusted EBITDA by adding net interest income (expense), income taxes, depreciation, amortization, impairment losses on intangible assets,
restructuring charges and (income) loss from discontinued operations to Syniverses net income (loss), and Briences pre-acquisition EBITDA loss (gain) from net income (loss). A reconciliation of adjusted EBITDA to net income (loss) is
presented in the financial tables contained herein.



We believe
that adjusted EBITDA provides meaningful additional information concerning a companys operating results and its ability to service its long-term debt and other fixed obligations and to fund its continued growth. Many financial analysts
consider adjusted EBITDA to be a meaningful indicator of future profitability. In addition, it is used in some of our debt covenants and our executive compensation and bonus plans. The presentation of adjusted EBITDA is not intended to be considered
in isolation or as a substitute for financial results prepared in accordance with GAAP. You should not construe adjusted EBITDA as an alternative to net income (loss) as determined in accordance with GAAP, as an alternative to cash flows from
operating activities as determined in accordance with GAAP or as a measure of liquidity. Because all companies do not calculate adjusted EBITDA in the same manner, it may not be comparable to other similarly titled measures of other companies.



Critical Accounting Policies



The following discussion and analysis of financial condition and results of
operations should be read in conjunction with the consolidated financial statements and related notes herein, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on a continual
basis, including those related to revenue recognition, allowance for doubtful accounts, property and equipment, and intangible assets. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different
assumptions or conditions.



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Revenue Recognition



We derive revenues from five primary categories: Network Services, Number Porting Services, Technology Interoperability
Services, Call Processing Services and Other Outsourcing Services. The revenue recognition policy for each of these areas is as follows:



| |  | Network Services primarily generate revenue by charging per-transaction processing fees, circuit fees and port fees. The monthly SS7 connection fee is based on the number of
links as well as the number of switches to which a customer signals and is recognized in the period when the service is rendered. The per-transaction fees are based on the number of subscriber events and database queries made through our network and
are recognized as revenues at the time the transactions are performed. Software revenues are generated through license fees, maintenance agreements and professional services. License fee revenues consist principally of revenue from the licensing of
our software and are generally recognized when a contract is executed, all delivery obligations have been met, the fee is fixed or determinable, and collectibility is probable. Generally, these policies have resulted in our recognition of revenue
from the software license fee on a straight-line basis over the period beginning with the completion of implementation and customer acceptance and ending with conclusion of the first maintenance period. Maintenance agreements call for us to provide
technical support and software enhancements to customers. Revenue on technical support and software enhancement rights is recognized ratably over the term of the support agreement. Professional services include consulting, training and installation
services to our customers. Revenue from such services is generally recognized as the services are performed.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Services primarily generate revenues by charging per-transaction processing fees, monthly fixed fees, and fees for customer implementations. We defer revenues
related to customer implementations, and recognize these fees on a straight-line basis over the life of the initial customer agreements. We recognize processing revenues at the time the transactions and services are performed.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Services primarily generate revenues by charging per-transaction processing fees. For our wireless roaming, wireline and SMS clearinghouse
services, revenues vary based on the number of data/messaging records provided to us by telecommunications carriers for aggregation, translation and distribution among carriers. These revenues are based on the number of wireless roaming subscriber
telephone calls and messages that take place on our customers networks. We recognize revenues at the time the transactions are performed.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Call Processing Services primarily generate revenue by charging per-transaction processing fees and software licensing fees. The per-transaction fee is based on the number of
validation, authorization, and other call processing messages generated by wireless subscribers. These revenues are recognized at the time the transactions are performed. Syniverse provides turn-key software solutions for which it charges customers
a software licensing fee. For turnkey software, we recognize revenue when accepted by the customer.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services primarily generate revenue by charging per-subscriber fees. We recognize revenues at the time the service is performed.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



Due to our billing cycles, for which some of our products lag as much as
60 days after services are rendered, we estimate the amounts of unbilled revenue each reporting period. Our estimates are based on recent volume and pricing trends adjusted for material changes in contracted service. Historically, our estimates have
correlated well with our actual billed revenue. Unanticipated changes in volume and pricing trends or material changes in contracted service could adversely affect our estimates of unbilled revenue.



Allowance for Doubtful Accounts



We maintain allowances for doubtful accounts for estimated losses resulting
from the inability of our customers to pay their invoices to us in full. We regularly review the adequacy of our accounts receivable allowance after considering the size of the accounts receivable balance, each customers expected ability to
pay and our collection history with each customer. We review significant invoices that are past due to determine if an allowance is necessary based on the risk category using the factors described above. In addition, we maintain a general allowance
for doubtful accounts by applying a percentage based on the aging category. Our estimates for allowances for doubtful accounts have tracked well with our actual experience of customers who are unable to pay their invoices in full. If our
customers financial conditions or the economy in general deteriorates, we may need to increase these allowances for doubtful accounts.



Impairment Losses



We review our long-lived assets including intangibles with definite lives for impairment when events or changes in circumstances indicate the carrying
value of such assets may not be recoverable. We review goodwill at least annually for impairment. We also evaluate the useful life of assets periodically. The review consists of a comparison of the carrying value of the assets with the assets
expected future undiscounted cash flows without interest costs. Estimates of expected future cash flows represent managements best estimate based on reasonable and supportable assumptions and projections. If actual market conditions are less
favorable than those projected by management, asset write-downs may be required. Management will continue to evaluate overall industry and company specific circumstances and conditions as necessary.



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Allowance for Credit Memos



We maintain a general reserve based on our historical credit memo activity. In addition, we establish credit memo reserves
resulting from specific customer matters. This allowance is recorded as a direct reduction of accounts receivable. Since our allowances for credit memos are derived in large part from specific customer matters, our estimates have tracked well with
our actual credit memo experience. If our billing errors or discrepancies are not resolved satisfactorily, or our customers disputes over billing are not resolved satisfactorily, increases to the allowance would be required.



Restructuring



We have made estimates of the costs to be incurred as a part of our initial restructuring plan in February 2002 arising from
our acquisition. These amounts were accrued as a part of our purchase accounting adjustments. We will review these estimates until fully paid. We have also made estimates of the costs to be incurred as a part of our August 2002, February 2003, and
July 2003 restructurings. If our original estimates of the costs of restructuring change, we will need to adjust our reserve amounts.



Loss Contingencies



We are involved in asserted and unasserted claims, which arise in the ordinary course of our business. We routinely evaluate whether a loss is probable,
and if so, whether it can be estimated. Accruals for probable losses are recorded in accrued expenses, or in our allowance for credit memos if the dispute relates to a customer matter. If our assessment of the probability is inaccurate, we may need
to record additional accruals or reduce recorded accruals later. In addition, we may need to adjust our estimates of the probable loss amounts as further information is obtained or we consider settlements.



Purchase Accounting



We have made estimates of the fair values of the assets acquired as of
February 14, 2002 based on appraisals from third parties and also based on certain internally generated information. In addition, we have estimated the economic lives of certain of these assets and these lives were used to calculate depreciation and
amortization expense.



Income Taxes



We review our deferred tax assets on a regular basis to evaluate their
recoverability based on projections of the turnaround timing of our deferred tax liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards.
Unless it is more likely than not that we will recover such assets through the above means, we establish a valuation allowance. The effective tax rate differs from the statutory tax rate due primarily to the pooling of Briences
results, impairment losses on intangible assets, and to a lesser extent to state and local taxes. Brience had incurred net operating losses since inception and hence was unable to recognize the benefit of these losses in its financial
statements tax provision. As a result of a review undertaken at December 31, 2003, we concluded that it was appropriate to establish a full valuation allowance for our deferred tax assets.



Recent Accounting Pronouncements



In January 2003, the FASB issued FASB Interpretation No. 46 Consolidation
of Variable Interest Entities.This interpretation of Accounting Research Bulletin No. 51, Consolidated Financial Statements addresses consolidation by business enterprises of variable interest entities. Under current practice, two
enterprises generally have been included in consolidated financial statements because one enterprise controls the other through voting interests. This interpretation defines the concept of variable interests and requires existing
unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse the risks among the parties involved. This interpretation applies immediately to variable interest entities
created after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest after that date. Nonpublic entities with an interest in an entity that is subject to this Interpretation and that is created after December
31, 2003, shall apply this Interpretation to that entity immediately. Nonpublic enterprises shall apply this Interpretation to all entities that are subject to this Interpretation by the beginning of the first annual period beginning after December
15, 2004. If it is reasonably possible that an enterprise will consolidate or disclose information about a variable interest entity when this interpretation becomes effective, the enterprise shall disclose information about those entities in all
financial statements issued after January 31, 2003. The interpretation may be applied prospectively with a cumulative-effect adjustment as of the date on which it is first applied or by restating previously issued financial statements for one or
more years with a cumulative-effect adjustment as of the beginning of the first year restated. We do not believe that FIN 46 has any impact on our financial statements currently. However, if we enter into certain types of transactions in the future,
including special purpose entities, then consolidation of that entity with us might be required.



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In April 2003, the FASB issued Statement No. 149, Accounting for Amendment of Statement 133 on
Derivative Instruments and Hedging Activities,or SFAS 149. The Statement amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under
Statement 133. This Statement was effective for contracts entered into or modified after June 30, 2003. The adoption of this statement has not had a material impact on our financial statements.



In May 2003, the FASB issued Statement No. 150, Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity,or SFAS 150. This statement establishes standards for how an issuer classifies and measures financial instruments with characteristics of both liabilities and equity.
This Statement is effective for financial instruments entered into or modified after May 31, 2003. The adoption of this statement has not had a material impact on our financial statements.



Contractual Obligations and Commitments



As of December 31, 2003, our contractual obligations consist only of our
debt and operating leases. We do not have a pension plan or other long-term employee benefit plan. In addition, the terms of our preferred units require a 10% annual dividend, however there is no fixed payment date, and none of these dividends have
been declared. As of December 31, 2003, our undeclared and unpaid dividends total $51.6 million. Our contracts with certain of our technology service providers, which range in length from 12 months to 60 months, have no minimum payment requirements.



|                                                 |  |       |         |                |   |             |  |             |         |                 |   |        |  |   |        
|------------------------------------------------ |  | ----- | ------- | -------------- | - | ----------- |  | ----------- | ------- | --------------- | - | ------ |  | - | -------
|Contractual Obligations                          |  | Total |         | LessThan 1Year |   | 2 to 3Years |  | 4 to 5Years |         | MoreThan 5Years
|Long-term debt obligations including interest(1) |  | $     | 656,945 |                | $ | 78,098      |  | $           | 255,662 |                 | $ | 62,566 |  | $ | 260,619
|Operating lease obligations                      |  |       | 18,748  |                |   | 5,722       |  |             | 10,196  |                 |   | 2,568  |  |   | 262    
|Purchase obligations(2)                          |  |       | 3,000   |                |   | 500         |  |             | 1,000   |                 |   | 1,000  |  |   | 500    
|                                                 |  |       |         |                |   |             |  |             |         |                 |   |        |  |   |        
|Total                                            |  | $     | 678,693 |                | $ | 84,320      |  | $           | 266,858 |                 | $ | 66,134 |  | $ | 261,381
|                                                 |  |       |         |                |   |             |  |             |         |                 |   |        |  |   |        

|(1) | The interest rate on Term Note B is at LIBOR plus 3.5%, with LIBOR increasing from 1.1% in 2004 to 3.3% in 2006.
|--- | ----------------------------------------------------------------------------------------------------------------

|(2) | Amounts due under professional services agreement with GTCR. For further information, please refer to Item 13. Certain Relationships and Related Transactions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------



Forward-Looking Statements



We have made forward-looking statements within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act of 1934 in this report. The words believes, anticipates, plans, expects, intends, estimates and similar
expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance and achievements, or industry results,
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.



Below are risks that may have a material impact to our business:



| |  | System failures, delays and other problems could harm our reputation and business, cause us to lose customers and expose us to customer liability.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  | We depend on a small number of customers for a significant portion of our revenues and the loss of any of our major customers would harm us.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our reliance on third-party communications software, hardware and infrastructure providers exposes us to a variety of risks we cannot control.
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| |  | Our business depends on the acceptance and continued use of our technology interoperability, network and call processing services by the telecommunication industry to facilitate
wireless and wireline communications.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | If we do not adapt to rapid technological change in the telecommunication industry, we could lose customers or market share.
| | - | ----------------------------------------------------------------------------------------------------------------------------



| |  | The market for technology interoperability, network and call processing services is intensely competitive and many of our competitors have significant advantages that could
adversely affect our business.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our failure to achieve or sustain market acceptance at desired pricing levels could impact our ability to maintain profitability or positive cash flow.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The inability of our customers to successfully implement our services with their existing systems could adversely affect our business.
| | - | --------------------------------------------------------------------------------------------------------------------------------------



| |  | Capacity limits on our technology interoperability, network and call processing services software and hardware may be difficult to project and we may not be able to expand and
upgrade our systems to meet increased use.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | We have significant debt service including interest in future years which may limit our ability to finance future growth of our business.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------



| |  | We may need additional capital in the future and it may not be available on acceptable terms.
| | - | ---------------------------------------------------------------------------------------------



| |  | Regulations affecting our customers and future regulations to which we may be subject may adversely affect our business.
| | - | ------------------------------------------------------------------------------------------------------------------------



| |  | We may not be able to receive or retain licenses or authorizations that may be required for us to sell our services overseas.
| | - | -----------------------------------------------------------------------------------------------------------------------------



| |  | We could be adversely affected by environmental and safety requirements.
| | - | ------------------------------------------------------------------------



| |  | The addition of new senior management members into the company could have a material adverse effect on our business, financial condition and results of operations.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The loss of key personnel could have a material adverse effect on our business, financial condition and results of operations.
| | - | ------------------------------------------------------------------------------------------------------------------------------



| |  | The costs and difficulties of acquiring and integrating complementary businesses and technologies could impede our future growth and adversely affect our competitiveness.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Our potential expansion into international markets may be subject to uncertainties which could affect our operating results.
| | - | ----------------------------------------------------------------------------------------------------------------------------



| |  | Continued terrorist attacks, war or other civil disturbances could lead to further economic instability and could have a material adverse effect on our business, financial condition
and results of operations.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | We may have difficulty attracting and retaining employees with the requisite skills to execute our growth plans.
| | - | ----------------------------------------------------------------------------------------------------------------



| |  | Our intellectual property may be misappropriated or subject to claims of infringement.
| | - | --------------------------------------------------------------------------------------



All forward-looking statements in this report are based on information available to us on the date of this report. We
undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us, or persons acting
on our behalf, are expressly qualified in their entirety by the cautionary statements contained throughout this report.



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ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Interest Rate Market Risk



We are exposed to changes in interest rates on our senior credit facility. Our senior credit facility is variable rate debt. Interest rate changes therefore generally do not affect the market value of such debt but do impact the amount of
our interest payments and, therefore, our future earnings and cash flows, assuming other factors are held constant. As of December 31, 2003, we had variable rate debt of approximately $216.3 million ($208.3 million net of discount). Holding other
variables constant, including levels of indebtedness, a one percentage point increase in interest rates on our variable debt would have had an estimated impact on pre-tax earnings and cash flows for the next year of approximately $2.2 million. Under
the terms of the senior credit facility at least 45% of our funded debt must bear interest that is effectively fixed. As a result, we may from time to time be required to enter into interest rate protection agreements establishing a fixed maximum
interest rate with respect to a portion of our total indebtedness.



In March 2003, we entered into an interest rate protection agreement that effectively caps the LIBOR exposure of $100 million of our senior credit facility at 3.0% for a period of two years. As a result of this interest rate protection
agreement, approximately 75% of funded debt now bears interest that is effectively fixed as to rate.



Foreign Currency Market Risk



We are exposed to foreign currency risk in certain circumstances. Prior to our opening of the office in the Netherlands in February 2003 and the acquisition of Softwright in late December 2003, we conducted all of our business in US
dollars. These two items had an immaterial impact on our 2003 financial position and results of operations, however this could change in future periods. At this time, we have not entered into any arrangements to hedge our risks from foreign
currency.



In addition, many of our customers are based outside
of the United States. In 2003, certain countries (primarily Venezuela) experienced instability causing these customers to have difficulty in exchanging their local currencies for U.S. dollars to satisfy their invoices due to us. As a result, we may
be required to explore other techniques to protect against such issues in the future.



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



Our financial statements required by this item are set forth as a separate section of this Annual Report on Form 10-K. See page 62 for a listing of financial statements provided in the section titled
Financial Statements.



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



Not applicable.



ITEM 9A. CONTROLS AND PROCEDURES



As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including the CEO and CFO, of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in rule 13a-15(e) under the Securities and Exchange Act of 1934, as required by rule 13a-15(b). Based on that evaluation, our management, including the CEO and CFO, concluded that our disclosure
controls and procedures were effective.



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PART III



ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT



Our executive officers and directors are as follows:



|                         |  |     |  |                                               
|------------------------ |  | --- |  | ----------------------------------------------
|Name                     |  | Age |  | Position                                      
|G. Edward Evans          |  | 43  |  | Chief Executive Officer, Director             
|Raymond L. Lawless       |  | 48  |  | Chief Financial Officer, Director             
|F. Terry Kremian         |  | 56  |  | Chief Operating Officer                       
|Paul A. Wilcock          |  | 56  |  | Chief Technology Officer                      
|Michael J. OBrien       |  | 38  |  | Vice PresidentMarketing                      
|Wayne Nelson             |  | 42  |  | Vice PresidentController                     
|Gilbert L. Mosher        |  | 56  |  | Vice PresidentOperations/Customer Support    
|Robert F. Garcia, Jr.    |  | 42  |  | General Counsel                               
|Charles A. Drexler       |  | 48  |  | Vice PresidentSales                          
|Linda Hermansen          |  | 38  |  | Vice PresidentBusiness Development & Strategy
|Eugene Bergen Henegouwen |  | 44  |  | Managing Director  European Operations       
|Paul Corrao              |  | 49  |  | Vice President - Network Operations           
|David A. Donnini         |  | 38  |  | Director                                      
|Collin E. Roche          |  | 33  |  | Director                                      
|Odie C. Donald           |  | 54  |  | Director                                      
|Tony G. Holcombe         |  | 48  |  | Director                                      
|Robert J. Marino         |  | 56  |  | Director                                      



G. Edward Evans
became our Chief Executive Officer and Director in February 2002. From January 1997 until January 2002, Mr. Evans was employed by Dobson Communications Corporation, serving as the President of its cellular subsidiaries and then as the President and
Chief Operating Officer of Dobson Communications Corporation itself. Mr. Evans was employed by BellSouth Mobility, Inc. from 1993 to 1996, serving as General ManagerKentucky, Director of Field Operations at BellSouths corporate office in
Atlanta and Director of MarketingAlabama. He was an Area Manager and a Market Manager of U.S. Cellular from 1990 to 1993 and was Sales Manager of GTE Mobilnet from 1989 to 1990. Mr. Evans serves on the boards of the CTIA and Carolina West
Wireless. He holds an MBA from Georgia State University.



Raymond L. Lawlessbecame our Chief Financial Officer in February 2002 and a Director as of March 2003. From October 2001 to February 2002, Mr. Lawless provided financial consulting services to telecommunication companies. Mr.
Lawless worked for Intermedia Communications Inc. from April 1997 to September 2001 serving as Vice President Finance and Treasurer. During his tenure at Intermedia, Mr. Lawless was responsible for capital formation, treasury operations, risk
management, corporate development, forecasting, strategic planning, budgeting, management reporting and investor relations support. Prior to that, Mr. Lawless spent 18 years at Bell Atlantic Corporation in various finance positions. Mr. Lawless
holds a BS in Business Administration from West Chester University and an MBA from the University of Arkansas.



F. Terry Kremian became our Chief Operating Officer in December 2003. Mr. Kremian most recently served as executive vice president and general
manager, Telecommunication Services Group for VeriSign, a position he held since VeriSigns acquisition of Illuminet Holdings in December 2001. From September 1998 to December 2001, Mr. Kremian served as president, executive vice president and
Chief Operating Officer of Illuminet Holdings. Prior to that, he was vice president  marketing and sales from November 1997. Mr. Kremian joined Illuminet Holdings from MCI where he was employed since 1982, most recently as director of carrier
sales. Mr. Kremian holds a B.S. degree from the U.S. Naval Academy and a J.D. degree from the University of Maryland School of Law.



Paul A. Wilcockhas served as Chief Technology Officer since March 2004. From September 2002 to March 2004 he served as Vice President 
Technology. Prior to that he served as Vice PresidentBusiness Development and Strategy from August 2001 to September 2002. Having joined us in 1992, Mr. Wilcock previously served as Assistant Vice PresidentBusiness Development and
Strategy, Assistant Vice PresidentMarketing, DirectorProduct Development and Support Services and DirectorEnterprise Technology. Mr. Wilcock began his GTE career in 1975 and has held numerous positions of increasing responsibility
in engineering, operations, marketing and strategy development. Mr. Wilcock graduated in Telecommunications from Leeds College of Engineering and Science (England) and holds an MBA from Wake Forest University.



Michael J. OBrienhas served as Vice PresidentMarketing
since January 2003. Prior to that, he served as Vice PresidentMarketing/Business Development from September 2002 to January 2003 and Vice PresidentMarketing from August 2001 to September 2002. Previously he served as Assistant Vice
PresidentMarketing from November of 2000 to August 2001 and Marketing DirectorNorth American Wireless from June of 1999 to November of 2000. From January of 1999 to June of that same year, Mr. OBrien worked as an independent
consultant. From August of 1997 to January of 1999, Mr. OBrien held the position of Director of Operations at GE LogistiCom, a satellite communications business. Prior to his employment with GE LogistiCom, Mr. OBrien served as a Product
Manager with us from March of 1996 to August of 1997. He has over 10 years experience with us in various marketing and operations positions. Mr. OBrien holds a BS in Computer Science from the University of Virginia.



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Wayne Nelsonhas
served as Vice PresidentController since August 2002. From September 2000 to August 2002 Mr. Nelson served as DirectorFinance and previously he served as DirectorCustomer Support. Mr. Nelson began his GTE career as a Finance
Associate in 1987. He has over 12 years experience with us in various marketing, operations and finance positions. Mr. Nelson holds a BA in Economics from the University of Rochester and an MBA in Finance/Statistics from Rutgers University.



Gilbert L. Mosherhas served as Vice
PresidentOperations/Customer Support since August 2001 and previously served as Assistant Vice PresidentInformation Technology, responsible for overseeing our software development. Prior to that, Mr. Mosher held various positions with
increasing responsibility in the technical and management areas beginning with a position as a Programmer Analyst with GTE in 1979. Mr. Mosher joined us in January 1996 as Assistant Vice PresidentInformation Technology. He earned a BS in
Professional Management from Nova Southeastern University and was elected as a member of Alpha Chi, National College Honor Scholarship Society. He also holds an MBA from Nova Southeastern University.



Robert F. Garcia, Jr.became our General Counsel in February 2002.
Prior to being appointed to General Counsel, he served as Associate General Counsel since September 2000. Mr. Garcia joined us in 1995 as in-house legal counsel. Prior to that, he was in private practice in Washington, D.C. Mr. Garcia received his
law degree from the National Law Center, George Washington University and has a BA in Political Science from the University of South Florida.



Charles A. Drexler became our Vice PresidentSales in June 2002. Prior to joining us, Mr. Drexler served as director-project development for
MetroPCS from March 2002 to June 2002. Mr. Drexler provided consulting services to telecommunications companies from August 2001 to March of 2002. From 1989 to July 2001, Mr. Drexler held positions of increasing responsibility at Lucent/AT&T.
During his tenure at Lucent/AT&T he was responsible for managing and developing domestic and international sales territories. Mr. Drexler holds BA in education from the University of Texas-El Paso.



Linda Hermansen became our Vice PresidentBusiness Development
and Strategy in January 2003. From November 1997 to January 2003, she served as DirectorMarketing and Business Development. Ms. Hermansen began her GTE career in 1989 with the GTE Telephone Operations finance department where she held various
positions of increasing responsibility within business analysis. Ms. Hermansen holds a bachelor of science degree in economics from the University of Illinois and an MBA from Butler University.



Eugene Bergen Henegouwen became our Managing Director  European
Operations in May 2003. Mr. Bergen Henegouwen, a Dutch native, has held a variety of high tech executive level positions in the United States and The Netherlands. Prior to joining us, he was CEO and Chairman of Invention Machine Corporation from
January 2001 to November 2002. From January 1999 to December 2000 he was CEO and president of AVIO Digital Inc. and from April 1995 to December 1998 he was CEO of Philips Creative Display Solutions in The Netherlands. Mr. Bergen Henegouwen has also
held senior level management positions with Philips Consumer Electronics, Business Electronics, Monitors and Philips Telecommunications and Data Systems. He holds a master of science degree and a bachelor of science degree in electrical engineering
from Delft University of Technology in The Netherlands.



Paul Corrao became our Vice President  Network Operations in July 2003. He has held several senior level customer care and operations positions throughout his 29-year career. From February 2002 to July 2003 he was Vice
President  Operations for EPIX and from August 1999 to October 2001 he was Vice President  Service Delivery for Intermedia Communications. Mr. Corrao spent 26 years with AT&T where he managed such areas as switching quality control,
VTNS operations, 800 and business application services, ISDN installations and customer care. He also worked with Bell Atlantics Global Network division. He holds a master of science degree from the Stevens Institute of Technology and a BA in
computer science from the City University of New York (CUNY).



David A. Donninihas served as a Director since February 2002. Mr. Donnini is currently a Senior Principal of GTCR Golder Rauner, LLC, which he joined in 1991. Prior to joining GTCR, he earned a BA in economics summa cum laude from
Yale University and an MBA from Stanford University where he was an Arjay Miller Scholar and the Robichek Finance Award



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winner. He also worked as an associate consultant with Bain & Company. . Mr. Donninis directorships include
American Sanitary, Inc., Cardinal Logistics Management, InfoHighway Communications Corporation, InteCap, Coinmach, Synagro Technologies, Keystone Group Holdings, Fairmount Food Group, LLC and Polypore Inc.



Collin E. Rochehas served as a Director since February 2002. Mr.
Roche is a Principal of GTCR Golder Rauner, LLC, which he joined in 1996. Previously, Mr. Roche worked as an investment banking analyst at Goldman, Sachs & Co. and as an associate at Everen Securities. He received a BA in Political Economy from
Williams College. He also holds an MBA from Harvard Business School. Mr. Roche serves on the board of directors of Transaction Network Services, InfoHighway Communications Corporation, TransFirst Holdings, Skylight Financial and Verifone.



Odie C. Donald has served as a Director since August
2002. Mr. Donald was a consultant to DIRECTV, Inc., a direct broadcast satellite television service and a unit of Hughes Electronics Corporation, from July 2001 to December 2002. From April 2000 to July 2001, Mr. Donald was President of DIRECTV.
From March 1999 to April 2000 he was Chief Executive Officer of Cable & Wireless Caribbean and Atlantic Islands Plc. Prior to that, Mr. Donald spent 25 years with BellSouth Corporation, where he held various positions, including Group
PresidentCustomer Operations from 1998 to 1999 and President of Bellsouth Mobility from 1992 to 1998. Mr. Donald serves on the board of directors of Darden Restaurants Inc.



Tony G. Holcombe has served as a Director since March 2003. Mr. Holcombe is currently President of Web MD Envoy,
which he joined in December 2003. From September 2002 to December 2003 Mr. Holcombe was chief executive officer of Valutec Card Solutions. From May 1997 to September 2002, Mr. Holcombe served in various executive positions at Ceridian Corporation
and its subsidiaries. From November 1999 to September 2002, Mr. Holcombe served as Executive Vice President of Ceridian Corporation. In addition, Mr. Holcombe held the following positions at subsidiaries of Ceridian Corporation including President
of Ceridian Employer Employee Services from November 1999 to September 2002 and President of Comdata from May 1997 to November 1999. Prior to this, Mr. Holcombe was President and Chief Executive Officer of National Processing, Inc., which provides
transaction-processing services and customized processing solutions, from October 1994 to March 1997. Mr. Holcombe serves on the board of directors of TALX Corporation.



Robert J. Marino has served as a Director since February 2004. From August 1998 to February 2003 Mr. Marino served as
Group President of Convergys Information Management Group, at which time he retired. Convergys Corporation was formed by spinning off Cincinnati Bell Information Systems Inc. (CBIS) and MATRIXX Marketing Inc. from Cincinnati Bell Inc. Prior to this,
Mr. Marino served as president and chief executive officer of CBIS from October 1996 to August 1998 and chief operating officer of CBIS from November 1995 to October 1996. Prior to joining CBIS Mr. Marino served as president of the northeast region
at Nextel Communications from November 1993 to October 1995. Mr. Marino also held senior management positions at Houston Cellular Telephone Company, Compania de Radiocomunicaciones Moviles in Argentina and Sprint Corporation.



Except as described herein, there are no arrangements or understandings
between any member of the management committee or executive officer and any other person pursuant to which that person was elected or appointed to his position. There are no family relationships between our executive officers or directors.



Our Board of Directors has the power to appoint officers. Each
officer will hold office for the term determined by our Board of Directors and until such persons successor is chosen and qualified or until such persons death, resignation or removal.



Board Committees



During 2003, we had two active Board committees, the compensation committee and audit committee. The compensation committee
administers our benefit plans and makes recommendations concerning compensation of our employees. The compensation committee consists of Mssrs. Evans, Donnini and Roche. The audit committee reviews and reports to the Board with respect to various
auditing and accounting matters, including the recommendation to the Board as to the selection of the independent auditors, the scope of the annual audit procedures, general accounting policy matters and the performance of the independent auditors.
During 2003, the audit committee was comprised of Messrs. Roche, Donald, and Holcombe, of which Messrs. Donald and Holcombe are independent as determined by the NASDAQ National Market rules and regulations, and is subject to an audit committee
charter.



We currently do not have a designated financial
expert on our audit committee, but we plan to designate a financial expert in the future.



The Board may create additional committees in the future.



Code of Ethics



We have
adopted a Code of Ethics that applies to all of our directors, officers and employees. Our Code of Ethics is included as Exhibit 14.1 to this Annual Report on Form 10-K.



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ITEM 11. EXECUTIVE COMPENSATION



Compensation
of Directors



Non-employee and non-equity investor
directors receive $2,500 in fees per board meeting. Beginning January 1, 2004, non -employee and non-equity investor directors will receive $15,000 annual compensation for board participation. Under the Syniverse Holdings, Inc. Non-Employee
Directors Stock Option Plan, non-employee directors of Syniverse Inc. who do not otherwise have an equity interest in Syniverse LLC are entitled to receive options to purchase 50,000 shares of Syniverse Inc.s non-voting common stock upon
joining Syniverse Inc.s board of directors. See Non-Employee Directors Stock Option Plan. Three of our directors, Mr. Donald, Mr. Holcombe and Mr. Marino, currently are eligible to receive options under this plan. Options to
purchase 50,000 shares of Syniverse, Inc.s non-voting common stock pursuant to this plan were granted to Mr. Donald in 2002, Mr. Holcombe in 2003 and Mr. Marino in 2004. All of our directors are reimbursed for out-of-pocket expenses related to
their service as directors.



Summary Compensation Table



The following table summarizes compensation awarded
or paid by us during 2003, 2002, and 2001 to our Chief Executive Officer and our four next highly compensated executive officers (our named executive officers).



|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                
|-------------------------------------------------------------------- |  | ------------ |  | ------------------- | --------------------- |  | --------------------- | ------------------- | --- |  | - | ---------------
|Name and Principal Position                                          |  | Year         |  | Annual Compensation
|                                                                     |  | Salary       |  | Bonus               |                       |  | All OtherCompensation
|G. Edward Evans (1) Chief Executive Officer                          |  | 200320022001 |  | $                   | 401,950342,026       |  | $                     | 175,000100,000     |     |  | $ | 191,42710,550 
|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                
|Raymond L. Lawless (2) Chief Financial Officer                       |  | 200320022001 |  |                     | 226,950192,603       |  |                       | 122,85456,700      |     |  |   | 10,7979,896   
|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                
|Paul A. Wilcock Chief Technology Officer                             |  | 200320022001 |  |                     | 177,800176,400169,046 |  |                       | 91,52644,800264,750 | (3) |  |   | 9,5509,4808,267
|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                
|Linda Hermansen Vice President - Business Development & Strategy     |  | 200320022001 |  |                     | 149,985137,285130,773 |  |                       | 118,74516,50099,675 | (4) |  |   | 7,9847,3645,944
|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                
|Eugene Bergen Henegouwen (5) Managing Director - European Operations |  | 200320022001 |  |                     | 173,888             |  |                       | 67,168            |     |  |   | 13,295       
|                                                                     |  |              |  |                     |                       |  |                       |                     |     |  |   |                

---

|(1) | Mr. Evans began his employment with Syniverse on February 14, 2002.
|--- | -------------------------------------------------------------------

|(2) | Mr. Lawless began his employment with Syniverse on February 14, 2002.
|--- | ---------------------------------------------------------------------

|(3) | Mr. Wilcocks 2001 bonus is comprised of an incentive bonus of $52,000 and a retention bonus of $212,750.
|--- | ---------------------------------------------------------------------------------------------------------

|(4) | Ms. Hermansens 2001 bonus is comprised of an incentive bonus of $33,225 and a retention bonus of $66,450.
|--- | ----------------------------------------------------------------------------------------------------------

|(5) | Mr. Henegouwen began his employment with Syniverse on May 14, 2003.
|--- | -------------------------------------------------------------------



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The following table identifies and quantifies the individual amounts included in of All Other
Compensation for each person listed:



|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         
|---------------------------------------------------------------- |  | ------------ |  | ------------ | --------- | ------------------------- | - | --------------- | ---------- |  | ------------ | --------- |  | - | --------
|Name and Principal Position                                      |  | Year         |  | ParkingReimb |           | 401KEmployerMatch/Pension |   |                 | Relocation |  | CarAllowance
|G. Edward Evans Chief Executive Officer                          |  | 200320022001 |  | $            | 660550   |                           | $ | 10,69210,000   |            |  | $            | 180,075 |  | $ |      
|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         
|Raymond L. Lawless Chief Financial Officer                       |  | 200320022001 |  |              | 660550   |                           |   | 10,1379,346    |            |  |              |        |  |   |      
|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         
|Paul A. Wilcock Chief Technology Officer                         |  | 200320022001 |  |              | 660660660 |                           |   | 8,8908,8207,607 |            |  |              |        |  |   |      
|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         
|Linda Hermansen Vice President - Business Development & Strategy |  | 200320022001 |  |              | 660660660 |                           |   | 7,3246,7045,284 |            |  |              |        |  |   |      
|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         
|Eugene Bergen Henegouwen Managing Director - European Operations |  | 200320022001 |  |              |        |                           |   |              | (1)        |  |              |        |  |   | 13,295
|                                                                 |  |              |  |              |           |                           |   |                 |            |  |              |           |  |   |         

|(1) | Syniverse contribution for 2003 for Mr. Henegouwen has not been calculated.
|--- | ---------------------------------------------------------------------------



Option Grants in Last Fiscal Year



None of our named executive officers were granted options in our last fiscal year under Syniverse Inc.s Founders Stock Option Plan or
Non-Employee Directors Stock Option Plan.



Option Exercises in Last Fiscal
and Fiscal Year-End Option Values



Our named executive
officers did not exercise any options during the last fiscal year and did not hold any unexercised options as of December 31, 2003.



Compensation Committee Interlocks and Insider Participation



The compensation arrangements for our chief executive officer and each of our other executive officers are established pursuant to the terms of the
respective employment agreements between Syniverse Inc. and each executive officer. The terms of the employment agreements were established pursuant to arms-length negotiations between representatives of our largest stockholder and each executive
officer in connection with our acquisition from Verizon. While Mr. Evans is on our compensation committee, he does not participate in setting his own compensation.



Employment Agreements



In his senior management agreement, Mr. Evans agrees to serve as our chief executive officer until he resigns or until we terminate his employment. While
employed by us, Mr. Evans receives an annual base salary of $400,000, subject to increase by our board of directors. For each fiscal year of employment, Mr. Evans will be eligible for an annual bonus of up to 50% of his annual base salary and will
be entitled to any other benefits approved by our board of directors. During Mr. Evans employment, Evans Motor Sports LLC, an entity owned by Mr. Evans, is entitled to use an aircraft leased by us. Mr. Evans or Evans Motor Sports LLC pays that
percentage of the monthly lease and other fixed costs for such aircraft based on Mr. Evans actual use of the aircraft on behalf of or in furtherance of business for Evans Motor Sports LLC, and reimburses us for all operating costs of the
aircraft in connection with such use. Commencing in 2004, Mr. Evans or Evans Motor Sports LLC shall make such payments on a quarterly basis within the thirty (30) days immediately following the end of such quarter.



Mr. Evans employment will continue until (i) he resigns without good
reason, disability or death, (ii) our board of directors decides to terminate his employment with cause, (iii) our board of directors decides to terminate his employment without cause, or (iv) he terminates his employment for good reason. If his
employment is terminated by us without cause or by Mr. Evans for good reason, then we will be obligated to pay Mr. Evans one-twelfth of his annual base salary per month for a six-month period



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commencing on the date of termination. Mr. Evans may then elect to receive these same severance payments for up to three
additional six-month periods. However, any severance payments made to Mr. Evans will be reduced by the amount of any cash compensation he earns or receives with respect to any other employment during the period in which he is receiving severance.



Mr. Evans agrees to limitations on his ability to disclose any
of our confidential information, and acknowledges that all inventions relating to his employment belong to us. Mr. Evans also agrees not to compete with us anywhere in the world or to solicit our employees for either the period during which he
receives severance (if he is terminated without cause or if he resigns for good reason) or for two years after his termination (if he resigns without good reason or if we terminate his employment for cause).



Other members of our senior management team also entered into senior
management agreements pursuant to which they agreed to be employed by us under terms generally no less favorable to us than Mr. Evans terms.



Consulting Agreement



In February 2002, Michael Hartman entered into a Consulting Agreement with us pursuant to which Mr. Hartman agreed to provide consulting services to us
and retain the title of President for a period of one year until February 14, 2003. Mr. Hartman received consulting payments totaling $215,500 in two installments in January and February of 2003, but was not entitled to any fringe benefits from us.



Mr. Hartman agreed to limitations on his ability to disclose
any of our confidential information, and acknowledged that all inventions relating to his service to us belong to us. Mr. Hartman also agreed not to compete with us anywhere in the world or to solicit our employees for a period of one year following
the closing of the acquisition.



Management Equity Arrangements



We have a senior management agreement with G. Edward
Evans pursuant to which he:



| |  | acquired a strip of 1,979.35 Class B Preferred Units and 620,031.79 Common Units, which are referred to as Co-Invest Units, at a price of $1,000 per Class B Preferred
Unit and $.0333 per Common Unit, which are the same prices as other equity investors paid;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | acquired 5,855,855.86 additional Common Units which were available only for issuance to management investors and which are referred to as Carried Units, at a price of
$.0333 per Carried Unit, which is the same price other equity investors paid for Common Units; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | committed to acquire up to approximately $196,000 of additional equity securities of Syniverse LLC under certain circumstances at the same price as other equity investors
participating in any such purchase.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



GTCR Fund
VII, L.P. loaned Mr. Evans approximately $1,000,000 to fund a portion of the purchase price for his purchase of Co-Invest Units and Carried Units. This loan bears interest at a rate of 10.0% per annum.



Other members of our senior management team, including Messrs. Lawless,
Kremian, Wilcock, OBrien, Nelson, Garcia, Drexler, Mosher, Bergen Henegouwen, Corrao and Ms. Hermansen, also entered into senior management agreements pursuant to which they acquired an aggregate of 5,405,405.41 Carried Units at the same price
as Mr. Evans. As a result of these purchases, 13% of our common equity is held by, or reserved for issuance to, our senior management team. See Certain Agreements and Related TransactionsSenior Management Agreements.



Founders Stock Option Plan



Syniverse Inc. adopted the Syniverse Holdings, Inc. Founders Stock
Option Plan (the Founders Option Plan) on May 16, 2002. Non-employee directors, executives and other key employees of Syniverse Inc. or its subsidiaries are eligible for grants of stock options under the plan. The purpose of the
stock option plan is to provide those persons who have a substantial responsibility for the management and growth of Syniverse Inc. and its subsidiaries with additional incentives by allowing them to acquire an ownership interest in Syniverse Inc.



A total of 1,000,000 shares of Syniverse Inc. non-voting
common stock, representing approximately 1.0% of Syniverse Inc.s currently outstanding common stock on a fully-diluted basis, are available for issuance under the Founders Option Plan, subject to adjustment in the event of a
reorganization, recapitalization, stock dividend, stock split, merger or similar change in the outstanding shares of common stock. These shares may be, in whole or in part, authorized and unissued or held as treasury shares.



The compensation committee of Syniverse Inc.s board of directors
administers the Founders Option Plan. Grants will be awarded under the Founders Option Plan entirely at the discretion of the compensation committee. As a result, Syniverse Inc. is



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unable to determine at this time the recipients, amounts and values of future benefits to be received under the
Founders Option Plan. As of December 31, 2003, there were options to purchase 293,750 shares of Syniverse Inc.s non-voting common stock granted and outstanding under this plan and 706,250 shares remained available for future grants under
the plan.



Eligibility



Non-employee directors, executives and key employees of Syniverse Inc. and
its subsidiaries who do not have an equity interest in Syniverse LLC will be eligible to receive grants under the Founders Option Plan. However, only employees may receive grants of incentive stock options. In each case, the compensation
committee will select the actual grantees.



Stock Options



Under the Founders Option Plan, stock options
granted will be presumed to be nonqualified stock options and are not intended to be incentive stock options within the meaning of Section 422A of the Internal Revenue Code unless clearly indicated by the compensation committee in the underlying
stock option agreement, in which case such stock options will be consistent with and contain all provisions required under Section 422 of the Internal Revenue Code.



The compensation committee will determine the exercise price of any stock option at its discretion subject to prohibition by
applicable securities laws. The exercise price of any stock option may be paid in any of the following ways:



| |  | in cash;
| | - | --------



| |  | by delivery of a promissory note, in the discretion of the compensation committee;
| | - | ----------------------------------------------------------------------------------



| |  | if there is a public market for the common stock, by delivery of outstanding shares of common stock that have been owned by the grantee for a minimum of six months and one day with
a fair market value on the date of exercise equal to the exercise price payable with respect to the stock options exercise;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | if there is a public market for the common stock, through a same day sale commitment from a grantee and a broker-dealer that is a member of the National Association of
Securities Dealers, Inc. (a NASD Dealer) reasonably acceptable to the compensation committee, in which the grantee irrevocably elects to exercise the stock option and sell a portion of the common stock so purchased to pay for the
exercise price and in which the NASD Dealer irrevocably commits upon receipt of such common stock to forward the exercise price directly to Syniverse Inc.;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | if there is a public market for the common stock, through a margin commitment from a grantee and a NASD Dealer in which the grantee irrevocably elects to exercise the
stock option and to pledge the common stock so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the exercise price, and in which the NASD Dealer irrevocably commits upon receipt of the
common stock to forward the exercise price to Syniverse Inc.; or
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | any combination of the foregoing.
| | - | ---------------------------------



The compensation committee will determine the term of each stock option in its discretion. However, no term may exceed ten years from the date of grant
or, in the case of an incentive stock option granted to a person who owns stock constituting more than 10% of the voting power of all classes of stock of Syniverse Inc. or any of its subsidiaries, five years from the date of grant. In addition, all
stock options awarded under the Founders Option Plan, whether or not then exercisable, generally cease vesting when a grantee ceases to be a non-employee director, executive or employee of, or to otherwise perform services for, Syniverse Inc.
or its subsidiaries.



There are, however, exceptions for stock
options vested and exercisable on the date of termination depending upon the circumstances of cessation. In the case of a grantees death or disability, such stock options will expire 180 days after the date of the grantees death or
long-term disability. In the event of retirement approved by the board of directors of Syniverse Inc., the grantees stock options will expire 90 days after the date of the grantees retirement. In addition, if a grantee is discharged
other than for good cause, the grantees stock options will expire 90 days after the date of the grantees discharge.



Vesting, Withholding Taxes and Transferability of Stock Options



The terms and conditions of each award made under the Founders Option Plan, including vesting requirements, will be
set forth, consistent with the plan, in a written agreement with the grantee.



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The grantees under the Founders Option Plan are liable for any withholding taxes required to be
withheld upon exercise of the grantees stock options. Syniverse Inc. is entitled under the Founders Option Plan to withhold from any grantee the amount of any withholding or other tax due from Syniverse Inc. with respect to any common
stock issuable under the stock options, and Syniverse Inc. may defer the exercise of the stock options or the issuance of the common stock following exercise unless indemnified to its satisfaction.



No award made under the Founders Option Plan will be transferable other
than by will or the laws of descent and distribution, and each award may be exercised only by the grantee or his or her legal guardian or legal representative.



Amendment, Suspension and Termination of Founders Option Plan



The board of directors of Syniverse Inc. or the compensation committee may suspend or terminate the Founders Option
Plan or any portion of the plan at any time and may amend it from time to time in such respects as the board of directors or the compensation committee may deem advisable, except that no amendment will become effective without prior approval of
Syniverse Inc.s shareholders if such approval is necessary for continued compliance with laws, agreements, or stock exchange listing requirements. Furthermore, any termination may not impair the rights of participants under outstanding stock
options without the affected participants consent. No stock options will be granted under the Founders Option Plan after five years from the date the stock option plan is adopted or the date the stock option plan is approved by Syniverse
Inc.s shareholders, whichever is earlier.



Non-Employee Directors
Stock Option Plan



The board of directors of Syniverse
Inc. adopted the Syniverse Holdings, Inc. Non-Employee Directors Stock Option Plan (the Non-Employee Directors Plan) on August 2, 2002. The purpose of the Non-Employee Directors Plan is to provide inducement to obtain and retain the
services of qualified persons as members of Syniverse Inc.s board of directors and to align more closely the interests of such persons with the interests of Syniverse Inc.s stockholders.



A total of 300,000 shares of Syniverse Inc. non-voting common stock,
representing approximately 0.3% of Syniverse Inc.s currently outstanding common stock on a fully-diluted basis, are available for issuance under the Non-Employee Directors Plan, subject to adjustment in the event of a reorganization,
recapitalization, stock dividend, stock split, combination or other reclassification in the outstanding shares of common stock. These shares may be, in whole or in part, authorized and unissued or held as treasury shares. As of December 31, 2003,
options to purchase 100,000 shares were issued and outstanding under this plan.



Syniverse Inc.s compensation committee administers the Non-Employee Directors Plan. Each eligible participant under the Non-Employee Directors Plan will be granted options to purchase 50,000 shares of common
stock of Syniverse Inc. on the later to occur of (i) the election of such participant as a director of Syniverse Inc. or (ii) the establishment of the Non-Employee Directors Plan.



Eligibility



Non-employee directors of Syniverse Inc. who do not have an equity interest in Syniverse LLC will be eligible to receive grants under the Non-Employee
Directors Plan.



Stock Options



Stock options granted under the Non-Employee Directors Plan will be
nonqualified stock options.



The exercise price per share of
common stock will be 100% of the fair market value of a share of common stock of Syniverse Inc. on the date of grant, taking into account for so long as the shares of Syniverse Inc. are not listed on the Nasdaq National Market all relevant factors
determinative of value as solely determined by the compensation committee and subject to adjustment in the event of a reorganization, recapitalization, stock dividend, stock split, combination or other reclassification affecting the shares of common
stock of Syniverse Inc.



Any option granted under the
Non-Employee Directors Plan will be exercisable only during the grantees term as a director of Syniverse Inc., except that an option may be exercisable by a holder for a period of 180 days after such grantee fails to be re-elected as a
director of Syniverse Inc. and an option may be exercisable for up to one year after the death of a grantee while a director of Syniverse Inc., except that such option will be exercisable only to the extent that the grantee was entitled to exercise
on the date of such grantees death or failure to be re-elected and only to the extent that the option would not have expired had the grantee continued to be a director of Syniverse Inc.



In the event of a change in control of Syniverse Inc. other than as a result
of an initial public offering, the options granted under the Non-Employee Directors Plan will immediately vest and become exercisable and such options will terminate if not exercised as of the date of the change in control or other prescribed period
of time. Further, in the event of the liquidation or dissolution of Syniverse Inc., the options will terminate immediately prior to the liquidation or dissolution.



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Subject to prohibition by applicable securities laws, the exercise price of any stock option may be paid
in any of the following ways:



| |  | in cash;
| | - | --------



| |  | by delivery of a promissory note, in the discretion of the designated committee;
| | - | --------------------------------------------------------------------------------



| |  | by delivery of outstanding shares of common stock that have been owned by the grantee for a minimum of six months and one day with a fair market value on the date of exercise equal
to the exercise price payable with respect to the stock options exercise;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | if there is a public market for the common stock, through a same day sale commitment from a grantee and an NASD reasonably acceptable to the designated committee, in
which the grantee irrevocably elects to exercise the stock option and sell a portion of the common stock so purchased to pay for the exercise price and in which the NASD Dealer irrevocably commits upon receipt of such common stock to forward the
exercise price directly to Syniverse Inc.;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | if there is a public market for the common stock, through a margin commitment from a grantee and a NASD Dealer in which the grantee irrevocably elects to exercise the
stock option and to pledge the common stock so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the exercise price, and in which the NASD Dealer irrevocably commits upon receipt of the
common stock to forward the exercise price to Syniverse Inc.; or
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | any combination of the foregoing, except that the designated committee may require that the exercise price be paid in cash.
| | - | ---------------------------------------------------------------------------------------------------------------------------



The compensation committee will determine the term of each stock option in
its discretion. However, no term may exceed ten years from the date of grant. The compensation committee will determine the date or the conditions on which each option will become exercisable and may provide that an option will become exercisable in
installments. Each grantee will consult with Syniverse Inc.s compliance office to confirm that no blackout period with respect to Syniverse Inc.s shares of common stock is then in effect. The shares of common stock constituting each
installment may be purchased in whole or in part at any time after such installment becomes exercisable, subject to such minimum exercise requirements as may be imposed by the compensation committee. Unless otherwise provided under the Non-Employee
Directors Plan or in the terms of the underlying stock option grant, a grantee may exercise an option only if such grantee has been a director of Syniverse Inc. or a subsidiary of Syniverse Inc. continuously since the date the option was granted.



Withholding Taxes and Transferability of Stock Options



Syniverse Inc. is entitled under the Non-Employee
Directors Plan to withhold from any grantee the amount of any withholding or other tax due from Syniverse Inc. with respect to any shares of common stock issuable under the stock options, and Syniverse Inc. may defer the exercise of the stock
options or the issuance of the common stock following exercise unless indemnified to its satisfaction.



No award made under the Non-Employee Directors Plan will be transferable other than by will or the laws of descent and distribution, and each award may be
exercised only by the grantee or such grantees legal guardian or legal representative. In the event of the death of the grantee, exercise of stock options granted under the Non-Employee Directors Plan will be made only (i) by the executor or
administrator of the estate of the deceased grantee or persons to whom the deceased grantees rights under the stock option pass by will or by the laws of descent and distribution, and (ii) to the extent that the deceased grantee was entitled
to so exercise at the date of his death, unless otherwise provided by the compensation committee in such grantees underlying option agreement. In connection with the transfer of an option, the grantee will remain liable for any withholding
taxes required to be withheld upon exercise of the option by the transferee.



Amendment, Suspension and Termination of Non-Employee Directors Plan and Outstanding Options



The board of directors of Syniverse Inc. or the compensation committee may suspend or terminate the Non-Employee Directors Plan or any portion of the plan
at any time and may amend it from time to time in such respects as the board of directors or the compensation committee may deem advisable, except that no amendment will become effective without prior approval of



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Syniverse Inc.s shareholders if such approval is necessary for continued compliance with laws, agreements, or stock
exchange listing requirements. Furthermore, any termination may not impair the rights of participants under outstanding stock options without the affected grantees consent. No stock options will be granted under the Non-Employee Directors Plan
after five years from the date the stock option plan is adopted or the date the stock option plan is approved by Syniverse Inc.s shareholders, whichever is earlier.



The compensation committee may amend or modify any option granted under the Non-Employee Directors Plan in any manner to the
extent that the committee would have had authority initially to grant such option except that no such amendment or modification will impair the rights of any grantee without the consent of such adversely affected grantee. With the grantees
consent, the compensation committee may cancel any option and issue a new option to such grantee.



ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



All of the Syniverse Technologies common stock is owned by Syniverse Inc., a corporation owned by Syniverse LLC, whose members include affiliates and
co-investors of GTCR Golder Rauner, LLC and certain members of our management.



The ownership interests in Syniverse LLC consist of Class A Preferred Units, Class B Preferred Units and Common Units. Holders of Class A Preferred Units and Class B Preferred Units have no voting rights except as
required by law. The holders of Common Units are entitled to one vote per unit on all matters to be voted upon by the members of Syniverse LLC.



Class A Preferred Units are entitled to a preferred yield of 10.0% per annum, compounded quarterly. On any liquidation or other distribution by Syniverse
LLC, holders of Class A Preferred Units are entitled to an amount equal to the original investment in such preferred units, net of any prior returns of capital with respect to such preferred units, plus any accrued and unpaid preferred yield, which
we refer to as the Class A Preference Amount, before any payments may be made to holders of Class B Preferred Units or Common Units. Class A Preferred Units may be used as consideration for the repurchase by Syniverse LLC of Class B
Preferred Units and Common Units held by members of our management team who cease to be employed by Syniverse LLC, Syniverse Inc. or their respective subsidiaries. Class B Preferred Units are also entitled to a preferred yield of 10.0%, compounded
quarterly. On any liquidation or other distribution by Syniverse LLC and after payment of the Class A Preference Amount, holders of Class B Preferred Units are entitled to an amount equal to the original investment in such preferred units, net of
any prior returns of capital with respect to such preferred units, plus any accrued and unpaid preferred yield, which we refer to as the Class B Preference Amount, before any payments may be made to holders of Common Units. The Common
Units represent the common equity of Syniverse LLC. After payment of the Class A Preference Amount and the Class B Preference Amount, Common Unit holders are entitled to any remaining proceeds of any liquidation or other distribution by Syniverse
LLC pro rata according to the number of Common Units held by such holder.



Both our senior credit facility and the indenture relating to the notes generally limit the ability of Syniverse LLCs operating subsidiaries to pay cash distributions to their respective equityholders other than
distributions in amounts approximately equal to the tax liability of the members of Syniverse LLC unless certain conditions are satisfied. Because Syniverse LLCs only significant assets are the stock of its subsidiaries, Syniverse LLC likely
will not have sufficient funds to make distributions to its members, other than tax distributions. Such tax distributions will be made quarterly and will be based on the approximate highest combined tax rate that applies to any of Syniverse
LLCs members.



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The following table sets forth certain information regarding the beneficial ownership of Syniverse LLC as
of March 15, 2004 by: (i) each person or entity known to us to own more than 5% of any class of Syniverse LLCs outstanding securities and (ii) each member of our board of managers, each of our named executive officers and all members of the
board of managers and executive officers as a group. Syniverse LLCs outstanding securities consisted of approximately 90,640,541 Common Units, 252,367.50 Class B Preferred Units and no Class A Preferred Units as of March 15, 2004. The
following table sets forth information regarding the beneficial ownership of Syniverse LLC rather than us because Syniverse LLC owns 100% of Syniverse Inc.s outstanding capital stock and Syniverse Inc. owns 100% of our capital stock. To our
knowledge, each of such securityholders has sole voting and investment power as to the units shown unless otherwise noted. Beneficial ownership of the securities listed in the table has been determined in accordance with the applicable rules and
regulations promulgated under the Exchange Act.



|                                                            |                       |                                  |                          |      |   |                         |            |                             |      |  
|----------------------------------------------------------- | --------------------- | -------------------------------- | ------------------------ | ---- | - | ----------------------- | ---------- | --------------------------- | ---- | -
|Name                                                        |                       | Securities Beneficially Owned(1) |                         
|                                                            | Number ofCommon Units |                                  | Percentage ofCommonUnits |      |   | Number ofPreferredUnits |            | Percentage ofPreferredUnits |     
|Principal Securityholders:                                  |                       |                                  |                          |      |   |                         |            |                             |      |  
|GTCR Fund VII, L.P.(2)(3)                                   |                       | 69,299,335.43                    |                          | 76.5 | % |                         | 220,971.00 |                             | 87.6 | %
|GTCR Fund VII/A, L.P.(2)(3)                                 |                       | 69,299,335.43                    |                          | 76.5 |   |                         | 220,971.00 |                             | 87.6 |  
|GTCR Co-Invest, L.P.(2)(3)                                  |                       | 69,299,335.43                    |                          | 76.5 |   |                         | 220,971.00 |                             | 87.6 |  
|GTCR Capital Partners, L.P.(2)(3)                           |                       | 69,299,335.43                    |                          | 76.5 |   |                         | 220,971.00 |                             | 87.6 |  
|Snowlake Investment Pte. Ltd.(4)                            |                       | 9,165,309.28                     |                          | 10.1 |   |                         | 29,258.79  |                             | 11.6 |  
|Managers and Executive Officers:                            |                       |                                  |                          |      |   |                         |            |                             |      |  
|G. Edward Evans(5)                                          |                       | 6,475,887.65                     |                          | 7.1  |   |                         | 1,979.35   |                             | *    |  
|David A. Donnini(2)(3)                                      |                       | 69,299,335.43                    |                          | 76.5 |   |                         | 220,971.00 |                             | 87.6 |  
|Collin E. Roche(2)(3)                                       |                       | 69,299,335.43                    |                          | 76.5 |   |                         | 220,971.00 |                             | 87.6 |  
|Raymond L. Lawless(5)                                       |                       | 900,900.90                       |                          | 1.0  |   |                         |           |                             |     |  
|Paul A. Wilcock (5)                                         |                       | 585,585.59                       |                          | *    |   |                         |           |                             |     |  
|Linda Hermansen(5)                                          |                       | 405,405.41                       |                          | *    |   |                         |           |                             |     |  
|Eugene Bergen Henegouwen(6)                                 |                       | 270,270.27                       |                          | *    |   |                         |           |                             |     |  
|Odie C. Donald(7)                                           |                       |                                 |                          |     |   |                         |           |                             |     |  
|Tony G. Holcombe(8)                                         |                       |                                 |                          |     |   |                         |           |                             |     |  
|Robert J. Marino(9)                                         |                       |                                 |                          |     |   |                         |           |                             |     |  
|All managers and executive officers as a group (17 persons) |                       | 81,180,628.49                    |                          | 89.6 | % |                         | 222,950.35 |                             | 88.3 | %

---

|* | Less than 1%
|- | ------------

|(1) | Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended, a person has beneficial ownership of any securities as to which such person, directly or indirectly,
through any contract, arrangement, undertaking, relationship or otherwise has or shares voting power and/or investment power and as to which such person has the right to acquire such voting and/or investment power within 60 days. Percentage of
beneficial ownership as to any person as of a particular date is calculated by dividing the number of shares beneficially owned by such person by the sum of the number of shares outstanding as of such date and the number of shares as to which such
person has the right to acquire voting and/or investment power within 60 days.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The address of each of GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest, L.P., GTCR Capital Partners, L.P. and Messrs. Donnini and Roche is c/o GTCR Golder Rauner, LLC,
6100 Sears Tower, Chicago, Illinois 60606.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Includes 45,054,361.36 Common Units and 143,575.10 Class B Preferred Units held by GTCR Fund VII, L.P., 22,487,432.10 Common Units and 71,787.55 Class B Preferred Units held by GTCR
Fund VII/A, L.P., 618,348.83 Common Units and 1,971.66 Class B Preferred Units held by GTCR Co-Invest, L.P. and 1,139,193.14 Common Units and 3,636.69 Class B Preferred Units held by GTCR Capital Partners, L.P. Mr. Donnini is a principal in GTCR
Golder Rauner, LLC, which is the general partner of the general partner of GTCR Fund VII, L.P. and GTCR Fund VII/A, L.P. and which is the general partner of GTCR Co-Invest, L.P. Mr. Roche is a Principal in GTCR Golder Rauner, LLC. Mr. Donnini and
Mr. Roche each disclaim the beneficial ownership of the Units held by such entities except to the extent of his proportionate ownership interests therein.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | The address of Snowlake Investment Pte. Ltd. is c/o GIC Special Investment Pte Ltd, 255 Shoreline Drive, Suite 600, Redwood City, California 94065.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The address of each of Messrs. Evans, Lawless, Wilcock, and Ms. Hermansen is c/o Syniverse Technologies Inc., One Tampa City Center, Suite 700, Tampa, Florida 33602.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | The address of Mr. Henegouwen is Graatd Van Roggenweg 328-334 Utrecht, Netherlands
|--- | ----------------------------------------------------------------------------------

|(7) | The address of Mr. Donald is 35 Kenmare Hall NE, Atlanta, Georgia 30324.
|--- | ------------------------------------------------------------------------

|(8) | The address of Mr. Holcombe is 201 Lake Ridge Court, Franklin, Tennessee 37069.
|--- | -------------------------------------------------------------------------------

|(9) | The address of Mr. Marino is 3032 Castalain Ct. Naples, Florida 34105
|--- | ---------------------------------------------------------------------



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Equity Compensation Plan Information



|                                                          |  |                                                                                         |  |                                                                         |      |                                                                                                                                       |        
|--------------------------------------------------------- |  | --------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------- | ---- | ------------------------------------------------------------------------------------------------------------------------------------- | -------
|                                                          |  | (a)                                                                                     |  | (b)                                                                     |      | (c)                                                                                                                                  
|Plan Category                                             |  | Number of securitiesto be issued uponexercise ofoutstanding options,warrants and rights |  | Weighted-averageexercise price ofoutstandingoptions, warrantsand rights |      | Number of securitiesremaining availablefor future issuanceunder equitycompensation plans(excluding
securitiesreflected in column (a))
|Equity plans approved by security holders                 |  | 393,750                                                                                 |  | $                                                                       | 5.00 |                                                                                                                                       | 906,250
|Equity compensation plan not approved by security holders |  |                                                                                        |  |                                                                         |     |                                                                                                                                       |       
|                                                          |  |                                                                                         |  |                                                                         |      |                                                                                                                                       |        
|Total                                                     |  | 393,750                                                                                 |  | $                                                                       | 5.00 |                                                                                                                                       | 906,250
|                                                          |  |                                                                                         |  |                                                                         |      |                                                                                                                                       |        



ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS



Limited Liability Company Agreement



The
limited liability company agreement of Syniverse LLC authorizes Syniverse LLC to issue Class B Preferred Units and Common Units. Syniverse LLC also has the authority to create and issue Class A Preferred Units, with the terms and provisions more
fully described in the senior management agreements described below, in connection with certain repurchases by Syniverse LLC of Class B Preferred Units and Common Units held by former executives in the event they cease to be employed by Syniverse
LLC, Syniverse Technologies Inc. or our respective subsidiaries.



Pursuant to the limited liability company agreement, distributions of property of Syniverse LLC shall be made in the following order:



| |  | First, holders of Class A Preferred Units, if any, will receive a preferred yield on their invested capital of 10% per annum, compounded quarterly;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Second, holders of Class A Preferred Units, if any, will receive return of their invested capital;
| | - | --------------------------------------------------------------------------------------------------



| |  | Third, holders of Class B Preferred Units will receive a preferred yield on their invested capital of 10% per annum, compounded quarterly;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



| |  | Fourth, holders of Class B Preferred Units will receive return of their invested capital; and
| | - | ---------------------------------------------------------------------------------------------



| |  | Thereafter, holders of the Common Units will receive all remaining distributions.
| | - | ---------------------------------------------------------------------------------



A Board of Managers generally has the exclusive authority to manage and control the business and affairs of Syniverse LLC.
The composition of the Board of Managers is determined in accordance with the provisions of the securityholders agreement described below.



Securityholders Agreement



Pursuant to the securityholders agreement entered into in connection with our acquisition from Verizon, units of Syniverse LLC (or common stock following
a change in corporate form) beneficially owned by the securityholders of Syniverse LLC and its subsidiaries are subject to certain restrictions on transfer, other than certain exempt transfers as defined in the securityholders



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agreement, as well as the other provisions described below. When reference is made to units of Syniverse LLC
in the discussion that follows, such reference shall be deemed to include common stock of Syniverse LLC following a change in corporate form, whether in preparation for an initial public offering or otherwise.



The securityholders agreement provides that GTCR Fund VII, L.P., GTCR Fund
VII/A, L.P. and GTCR Co-Invest, L.P., which we refer to as the GTCR investors, and our executives or other executive officers of our subsidiaries who acquire securities of Syniverse LLC, which we refer to as the management
investors, and all other parties to the agreement, which we refer to as the other investors, will vote all of their units to elect and continue in office, boards of managers or boards of directors of Syniverse LLC and each of its
subsidiaries, consisting of up to seven members composed of:



| |  | three persons designated by GTCR Fund VII;
| | - | ------------------------------------------



| |  | our chief executive officer;
| | - | ----------------------------



| |  | one other employee of ours or our subsidiaries designated by the chief executive officer; and
| | - | ---------------------------------------------------------------------------------------------



| |  | two representatives designated jointly by GTCR Fund VII and the chief executive officer, or, if GTCR Fund VII and the chief executive officer are unable to agree upon such
representatives, designated by GTCR Fund VII.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The securityholders agreement also provides:



| |  | the management investors and the other investors with customary tag-along rights with respect to transfers of Syniverse LLC units beneficially owned by the GTCR investors;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | preemptive rights to management investors and other investors in connection with certain authorizations of sales to the GTCR investors of Common Units or securities convertible into
Common Units;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | in connection with certain sales of interests in Syniverse LLC by investors other than the GTCR investors, rights of first refusal with respect to such sales, first to Syniverse
LLC, then to the remaining investors; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the GTCR investors with drag along rights with respect to Syniverse LLC units owned by the management investors and the other investors.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------



Registration Agreement



Under the registration agreement entered into in connection with our acquisition form Verizon, the holders of a majority of
the GTCR investors registrable Syniverse LLC securities have the right at any time, subject to certain conditions, to require Syniverse LLC, any corporate successor thereto or any subsidiary thereof, to register any or all of their securities
under the Securities Act on Form S-1, which we refer to as a long-form registration at Syniverse LLCs expense or on Form S-2 or Form S-3, which we refer to as a short-form registration at Syniverse LLCs expense.
Syniverse LLC is not required, however, to effect any such long-form registration within 90 days after the effective date of a previous long-form registration. In addition, all holders of registrable securities are entitled to request the inclusion
of such securities in any registration statement at Syniverse LLCs expense whenever Syniverse LLC proposes to register any offering of its equity securities (other than pursuant to an initial public offering of Syniverse LLCs equity
securities or a registration on Form S-4 or Form S-8).



Senior Management
Agreements



Provisions Regarding Units



Mr. Evans



We have entered into a senior management agreement with G. Edward Evans
pursuant to which he:



| |  | acquired a strip of 1,979.35 Class B Preferred Units and 620,031.79 Common Units, which are referred to as Co-Invest Units, at a price of $1,000 per Class B Preferred
Unit and $.0333 per Common Unit;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | acquired 5,855,855.86 additional Common Units which were available only for issuance to management investors and which are referred to as Carried Units, at a price of
$.0333 per Carried Unit, and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  | committed to acquire up to approximately $196,000 of additional equity securities of Syniverse LLC under certain circumstances.
| | - | -------------------------------------------------------------------------------------------------------------------------------



Co-Invest Units were fully vested when purchased but Carried Units are
subject to vesting and will vest quarterly over a period of five years, subject to acceleration in the event of an initial public offering of the equity of Syniverse LLC, or any corporate successor thereto or a sale of Syniverse LLC.



Syniverse LLC may be required to purchase a portion of Mr. Evans units
in the event of his termination of employment due to death or disability. In addition, Syniverse LLC and the other investors will have the right to purchase all or a portion of Mr. Evans units if his employment is terminated. If Syniverse LLC
elects or is required to purchase any units pursuant to the call and put options described in the preceding sentences, up to 50% of the purchase price of any such units may be paid by issuing Class A Preferred Units to Mr. Evans. Each Class A
Preferred Unit has a liquidation preference equal to the purchase price of the units being purchased with such Class A Preferred Unit. In addition, if any repurchase would result in a violation of law applicable to Syniverse LLC or its subsidiaries
or a default under their financing arrangements, Syniverse LLC may defer such purchase until it is permitted, with the deferred purchase price accruing interest at the rate of 10% per annum, compounded quarterly.



The purchase price for securities purchased pursuant to the call and put
options described above shall be:



| |  | the original cost in the case of unvested Carried Units;
| | - | --------------------------------------------------------



| |  | the fair market value of such unit in the case of vested Carried Units and Co-Invest Units which are Common Units; and
| | - | ----------------------------------------------------------------------------------------------------------------------



| |  | the unreturned capital plus unpaid yield in the case of Co-Invest Units that are Class B Preferred Units.
| | - | ---------------------------------------------------------------------------------------------------------



GTCR Fund VII, L.P. loaned Mr. Evans approximately $1,000,000 to fund a portion of the purchase price for his purchase of
Co-Invest Units and Carried Units. This loan bears interest at a rate of 10% per annum.



The senior management agreement also prohibits Mr. Evans from transferring any of his Co-Invest Units or Carried Units, subject to certain exceptions. This transfer restriction terminates with respect to particular
securities upon such securities being transferred in a public sale and terminates with respect to all securities upon the sale of Syniverse LLC.



Others



Other members of our senior management team, including Messrs. Lawless, Kremian, Wilcock, OBrien, Nelson, Garcia, Drexler, Mosher, Bergen
Henegouwen, Corrao and Ms. Hermansen, also entered into senior management agreements pursuant to which they acquired an aggregate of 5,405,405.41 Carried Units at the same price and under terms generally no less favorable to the company than Mr.
Evans terms.



Employment Provisions



Mr. Evans



Our senior management agreement with Mr. Evans also contains provisions
relating to employment. Mr. Evans agrees to serve as our chief executive officer until he resigns or until we terminate his employment. While employed by us, Mr. Evans will receive an annual base salary of $400,000, subject to increase by our board
of directors. For each fiscal year of employment, Mr. Evans is eligible for an annual bonus of up to 50% of his annual base salary and is entitled to any other benefits approved by our board of directors. During Mr. Evans employment, Evans
Motor Sports LLC, an entity owned by Mr. Evans, will be entitled to use an aircraft leased by us. Mr. Evans or Evans Motor Sports LLC pays that percentage of the monthly lease and other fixed costs for such aircraft based on Mr. Evans actual
use of the aircraft on behalf of or in furtherance of business for Evans Motor Sports LLC, and reimburses us for all operating costs of the aircraft in connection with such use. Commencing in 2004, Mr. Evans or Evans Motor Sports LLC shall make such
payments on a quarterly basis within the thirty (30) days immediately following the end of such quarter.



Mr. Evans employment will continue until (i) he resigns without good reason, disability or death, (ii) our board of directors decides to terminate
his employment with cause, (iii) our board of directors decides to terminate his employment without cause, or (iv) he terminates his employment for good reason. If his employment is terminated by us without cause or by Mr. Evans for good reason,
then we will be obligated to pay Mr. Evans one-twelfth of his annual base salary per month for a six-month period commencing on the date of termination. We have an option to extend the severance payment period (and the corresponding non-compete
period described below) for up to three additional six-month periods. Any severance payments made to Mr. Evans will be reduced by the amount of any cash compensation he earns or receives with respect to any other employment during the period in
which he is receiving severance.



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Mr. Evans agreed to limitations on his ability to disclose any of our confidential information, and
acknowledged that all inventions relating to his employment belong to us. Mr. Evans also agreed not to compete with us anywhere in the world or to solicit our employees for either the period during which he receives severance (if he is terminated
without cause or if he resigns for good reason) or for two years after his termination (if he resigns without good reason or if we terminate his employment for cause).



The senior management agreement also contains customary representations, warranties and covenants.



Others



Other members of our senior management team, including Messrs. Lawless, Kremian, Wilcock, OBrien, Nelson, Garcia,
Drexler, Mosher, Bergen Henegouwen, Corrao and Ms. Hermansen, also entered into senior management agreements pursuant to which they agreed to be employed by us under terms generally no less favorable to us than Mr. Evans terms.



Consulting Agreement



At the time of our acquisition from Verizon, we entered into a Consulting Agreement with Michael Hartmen pursuant to which
Mr. Hartman agreed to provide consulting services to us and retain the title of President for a period of one year until February 14, 2003. Mr. Hartman received consulting payments totaling $215,500 in two installments in January and February of
2003, but was not entitled to any fringe benefits.



Mr. Hartman
agreed to limitations on his ability to disclose any of our confidential information, and acknowledges that all inventions relating to his service to us belong to us. Mr. Hartman also agreed not to compete with us anywhere in the world or to solicit
our employees for a period of one year following the closing of the acquisition.



Purchase Agreements



At the time of our
acquisition from Verizon, the GTCR investors and certain co-investors acquired a strip of Class B Preferred Units and Common Units for an aggregate purchase price of $252,367,500 and $2,632,500, respectively and committed to purchase up to an
additional $25,000,000 of equity securities of Syniverse LLC. The investment of the additional $25,000,000 is conditioned upon the GTCR investors and the board of managers of Syniverse LLC approving the terms of the investment and the proposed use
of the proceeds from the investment, as well as the satisfaction of certain other conditions.



Professional Services Agreement



At the time of our acquisition from Verizon, we engaged GTCR Golder Rauner, LLC (GTCR) as a financial and management consultant, and GTCR agreed to provide financial and management consulting services to us and our subsidiaries,
all on the terms and subject to the conditions set forth in the professional services agreement.



GTCR agreed during the term of such engagement to consult with our board, the boards of directors (or similar governing body) of our affiliates and our
management and management of our affiliates in such manner and on such business and financial matters as may be reasonably requested from time to time by the Board, including but not limited to: (i) corporate strategy; (ii) budgeting of future
corporate investments; (iii) acquisition and divestiture strategies and (iv) debt and equity financings.



GTCR will provide and devote to the performance of the professional services agreement such partners, employees and agents of GTCR as GTCR deems
appropriate for the furnishing of the services required by the professional services agreement.



At the time of any purchase of equity by the Investors and/or their Affiliates pursuant to Section 1B of the unit purchase agreement, we will pay to GTCR
a placement fee in immediately available funds equal to one percent of the amount paid to Syniverse LLC in connection with such purchase. At the time of any other equity or debt financing of Syniverse LLC, Syniverse Inc., us or any of our respective
subsidiaries prior to a Public Offering (as defined in Syniverse LLCs limited liability company agreement) (other than (i) the purchase of securities of Syniverse LLC by any executive pursuant to any senior management agreement (as entered
into from time to time among Syniverse LLC, us and our executives) and (ii) any debt or equity financing provided by the seller or sellers of a target company or business in connection with the acquisition thereof), we will pay to GTCR a placement
fee in immediately available funds equal to one percent of the gross amount of such financing (including the committed amount of any revolving credit facility). If any individual payment to GTCR pursuant to this paragraph would be less than $10,000,
then such payment will be held by us until such time as the aggregate of such payments equals or exceeds $10,000.



We pay to GTCR an annual management fee of $500,000. Such management fee is payable in equal monthly installments.



We are obligated to promptly reimburse GTCR for such reasonable travel
expenses, legal fees and other out-of-pocket fees and expenses as have been or may be incurred by GTCR, its directors, officers and employees in connection with our purchase



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from Verizon, in connection with any financing of Syniverse LLC, us or any of our respective subsidiaries, and in
connection with the rendering of any other services hereunder (including, but not limited to, fees and expenses incurred in attending company-related meetings).



The professional services agreement will continue until the earlier to occur of (i) a sale in a public offering registered under the Securities Act of
1933, as amended, of equity securities of Syniverse LLC or a corporate successor to Syniverse LLC and (ii) the Investors and their Affiliates ceasing to own at least 50% of the Investor Securities (as defined in the unit purchase agreement). No
termination of the professional services agreement, whether pursuant to this paragraph or otherwise, will affect our obligations with respect to the fees, costs and expenses incurred by GTCR in rendering services hereunder and not reimbursed by us
as of the effective date of such termination.



Neither GTCR nor
any of its affiliates, partners, employees or agents shall be liable to us, Syniverse LLC, or their subsidiaries or affiliates for any loss, liability, damage or expense arising out of or in connection with the performance of services contemplated
by the professional services agreement, unless such loss, liability, damage or expense is proven to result directly from the gross negligence or willful misconduct of GTCR.



We have agreed to indemnify and hold harmless GTCR, its partners, affiliates, officers, agents and employees against and
from any and all loss, liability, suits, claims, costs, damages and expenses (including attorneys fees) arising from their performance under the professional services agreement, except as a result of their gross negligence or intentional
wrongdoing.



Neither GTCR nor we may assign our rights or
obligations under the professional services agreement without the express written consent of the other, except that GTCR may assign its rights and obligations to an affiliate of GTCR. The professional services agreement is governed by the internal
laws of the State of Delaware.



For purposes of the
professional services agreement, the following terms have the following definitions:



Affiliate of any person means any other person controlling, controlled by or under common control with such particular person or entity.



Investors means GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., and GTCR Co-Invest, L.P.



Revenue Guaranty Agreement



We have entered into an agreement with Verizon Information Services Inc.
(VIS) in which VIS has agreed, through December 31, 2005, to make quarterly payments to us if the amount of wireless revenues, as defined, for a given period is less than the revenue target for such period. In general the revenue guaranty payments
will be due if wireless revenues during each of the years in the period from February 14, 2002 to December 31, 2005 are less than 82.5% of the agreed-upon targets.



Payments due under the agreement would be calculated quarterly as equal to 61.875% of the shortfall for the each first three
quarters and 82.5% of the cumulative shortfall for each of the years covered under the agreement. The quarterly and full year targets covered under the agreement are:



| |  | $12.9 million for each fiscal quarter in 2002, $45.4 million for the period February 14, 2002 to December 31, 2002;
| | - | -------------------------------------------------------------------------------------------------------------------



| |  | $8.7 million for each fiscal quarter in 2003, $34.9 million for full year 2003;
| | - | -------------------------------------------------------------------------------



| |  | $8.4 million for each fiscal quarter in 2004, $33.5 million for full year 2004;
| | - | -------------------------------------------------------------------------------



| |  | $8.3 million for each fiscal quarter in 2005, $33.2 million for full year 2005.
| | - | -------------------------------------------------------------------------------



No payments from Verizon are due under the guaranty agreement for the period from February 14, 2002 to December 31, 2003.



Intellectual Property Agreement



Under the intellectual property agreement entered into in connection with
our acquisition from Verizon, Verizon Information Services Inc., Verizon Communications Inc. and we agreed to the following:



| |  | We and the Verizon companies each conveyed an undivided joint ownership interest to the other in certain of our respective unregistered intellectual property;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates granted a limited, royalty-free, non-exclusive, worldwide license of certain of their respective registered intellectual property to us
and our affiliates;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  | We granted a limited royalty-free, non-exclusive, worldwide license of certain of our registered intellectual property to the Verizon companies and their affiliates;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates granted a limited, royalty-free, non-exclusive, worldwide license of certain third-party intellectual property to us pursuant to their
right to sublicense such materials;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | the Verizon companies conveyed and transferred to us certain of their intellectual property; and
| | - | ------------------------------------------------------------------------------------------------



| |  | the Verizon companies and their affiliates are generally indefinitely prohibited from using any of the intellectual property that we license to them under the intellectual property
agreement to offer goods or services that compete with us, whether such goods or services are provided to third parties or used internally.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Taken together, these licenses and joint-ownership grants generally provide us and the Verizon companies the right to continue our respective use of the
others intellectual property in existence as of the closing of the acquisition to the extent that we rely upon such intellectual property to operate our respective businesses prior to the closing of the acquisition. We also agreed that, except
as required by applicable law, we will not divulge or otherwise make available to any person the intellectual property that is the subject of the agreement.



Distributed Processing Services Agreement



We entered into a Distributed Processing Services Agreement with Verizon Information Technologies Inc. (VITI) whereby VITI agreed to provide
us with data center infrastructure and technical support services in support of our distributed systems processing, including a data center network infrastructure. Furthermore, for a period not to exceed sixty (60) days from the effective date of
the Distributed Processing Services Agreement, VITI provides the six circuits that we receive from NTN on a pass-through cost basis. VITI also continued to provide us access to SAP, AP and Intranet applications for a period of sixty (60) days from
the effective date of the Distributed Processing Services Agreement.



VITI is responsible for monitoring the company-provided telecommunications network between our location and VITIs location, as well as for the purchase and maintenance of the network hardware and software at VITIs demarcation
point. We are responsible for the purchase and maintenance of any network hardware or software necessary to allow us to connect to the network at a mutually satisfactory company demarcation point.



We pay both monthly labor fees (capped at approximately $240,667 per month)
and maintenance fees. The contract rate of the maintenance fees is $3.6 million annually with $300,000 of that charge billed to us on a monthly basis. If new hardware, software or maintenance is added or service levels are increased, VITI will
charge us at rates that are consistent with those described above in this paragraph. To the extent we request VITI to transfer any third party licenses used specifically for us and not under Verizons enterprise license, VITI will transfer such
licenses, provided that we have paid all consent, license and maintenance fees.



The agreement is for 18 months. We have the right to terminate the agreement (or any services relating to specific hardware or software that we may want to remove from the environment) for convenience, in whole or in
part, by providing three months prior written notice. Appropriate adjustments to the fees will be made with respect to any termination in part. Provided that we have not been terminated for default, VITI will, upon request, provide termination
assistance to us sufficient to transfer us to another service provider. This assistance shall be provided at $125 per hour.



We have the right to purchase certain hardware from VITI upon termination or expiration of the agreement for either one dollar or book value, depending on
the type of hardware. We and VITI also entered into service level agreements, attached as an exhibit to the agreement, for existing applications and hardware and for existing hardware platforms. The parties are also obligated to negotiate new
service levels for added hardware and software within 90 days of the implementation of such additional hardware or software.



On July 8, 2003, the Distributed Processing Services Agreement with VITI was renewed for an additional 3 years. Amounts incurred under this agreement
total $4.6 million for the year ended December 31, 2003.



Equity
Sponsors Investment in Transaction Network Services, Inc.



Certain investment funds affiliated with GTCR Golder Rauner, LLC are collectively the controlling equityholder of Transaction Network Services, Inc. (TNS). We have done business with TNS in the past, and expect to continue to do
business with TNS in the future. Collin Roche, who serves as one of our directors, also serves on the board of directors of TNS. For the



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period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, we recognized revenues in the
amount of $1,617 and $2,313, respectively. For the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, we recognized expenses in the amount of $687 and $457, respectively.



Acquisition of Brience Inc.



Effective July 23, 2003, pursuant to an agreement and plan of merger dated
as of July 15, 2003, among Syniverse Networks, Syniverse Brience, LLC (Syniverse Brience), Brience, Inc. (Brience) and certain holders (the seller parties) of Series C Preferred Stock, par value $.01 per share, of
Brience, Brience was merged with and into Syniverse Brience with Syniverse Brience continuing as the surviving entity and a wholly owned subsidiary of Syniverse Networks. Historically, Brience developed and sold information access and integration
software products to large enterprises. At the time of the merger, however, Briences business was limited to selling and servicing its Mobile Processing Server product.



As a result of the merger, each share of Series C Preferred Stock of Brience outstanding as of the effective time of the
merger was converted into a right to receive a pro rata share of 1.67 shares of Class B Common Stock, par value $.01 per share, of Syniverse Networks, under the terms and subject to the conditions set forth in the merger agreement. All other
outstanding classes of stock of Brience were canceled and retired with no right to payment under the terms of the merger agreement. Concurrent with the merger, the seller parties other than GTCR Fund VII, L.P. and GTCR Co-Invest, L.P. entered into
an exchange agreement, dated as of July 23, 2003, with Syniverse LLC pursuant to which such seller parties (the exchange parties) exchanged all of the merger consideration received by the exchanging parties in the merger in exchange for
a pro rata portion of 19,775.01 common units of Syniverse LLC. Also concurrent with the merger, GTCR Fund VII, L.P. and GTCR Co-Invest L.P. (the investors) entered into a contribution agreement, dated as of July 23, 2003, with Syniverse
LLC pursuant to which the Investors agreed to contribute to Syniverse LLC all of the merger consideration received by the investors in the merger in exchange for a pro rata position of 80,224.99 common units of Syniverse LLC.



The consideration paid to holders of Series C Preferred Stock was determined
through arms-length negotiations between (i) the board of managers and officers of Syniverse LLC and the boards of directors and officers of Syniverse Networks and us and (ii) the board of directors and officers of Brience, which included
representatives of the exchanging parties. Messrs. Donnini and Roche recused themselves from all discussions by the board of managers of Syniverse LLC and the boards of directors of Syniverse Networks and us with respect to the merger. The merger
agreement was approved and adopted by the stockholders of Brience pursuant to written consents, which included a majority of the minority owners of Brience.



ITEM 14. Principal Accountant Fees and Services



The following table summarizes the aggregate fees billed to us by our independent auditor Ernst & Young LLP:



|                      |  |                             |  |                            
|--------------------- |  | --------------------------- |  | ---------------------------
|                      |  | Year EndedDecember 31, 2002 |  | Year EndedDecember 31, 2003
|Audit fees(1)         |  | 718,598                     |  | 732,787                    
|Audit-related fees(2) |  | 193,518                     |  | 109,269                    
|Tax fees(3)           |  | 77,018                      |  |                           
|All other             |  |                            |  |                           
|                      |  |                             |  |                            
|Total fees            |  | 989,134                     |  | 842,056                    
|                      |  |                             |  |                            



| | 1) | Audit fees include fees for our fiscal year-end audit, interim quarterly reviews, other SEC filings, comfort letters, consents acquisitions, and accounting consultations.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2) | Audit-related fees include fees for due diligence in connection with proposed acquisitions.
| | -- | -------------------------------------------------------------------------------------------

| | 3) | Tax fees include fees for consultation on state tax and international tax matters.
| | -- | ----------------------------------------------------------------------------------



Our Board of Directors pre-approved all of the services by Ernst & Young LLP.



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PART IV



ITEM 15. Exhibits, Financial Statement Schedules and Reports on Form 8-K





|       |  |                                                                         |  |     
|------ |  | ----------------------------------------------------------------------- |  | ----
|       |  |                                                                         |  | Page
|(a) 1. |  | Index to Financial Statements                                           |  | 59  
|       |  |                                                                        
|       |  | Report of Independent Certified Public Accountants                      |  | 60  
|       |  | Consolidated Balance Sheets                                             |  | 61  
|       |  | Consolidated Statements of Operations                                   |  | 62  
|       |  | Consolidated Statements of Changes in Shareholders/Unitholders Equity |  | 63  
|       |  | Consolidated Statements of Cash Flows                                   |  | 64  
|       |  | Notes to Consolidated Financial Statements                              |  | 65  
|       |  |                                                                        
|(a) 2. |  | Financial Statement Schedule                                            |  |     
|       |  |                                                                        
|       |  | Schedule II - Valuation and Qualifying Accounts                         |  | 98  



All other schedules have been omitted
since the required information is not present in amounts sufficient to require submission of the schedule, or because the information required is included in our consolidated financial statements or note thereto.



(b) The following reports on Form 8-K were filed during the fourth quarter of 2003:



| |  | The registrant filed a Current Report on Form 8-K on October 30, 2003, under Item 9. Regulation FD Disclosure and Item 12. Disclosure of Results of Operations and
Financial Condition reporting on Syniverse Technologies Inc.s results for the third quarter of 2003.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The registrant filed a Current Report on Form 8-K/A on November 14, 2003, under Item 5. Other Events and Regulation FD Disclosure and Item 7. Financial Statements,
Pro Forma Financial Information and Exhibits reporting the restated audited consolidated financial statements of the Ultimate Parent as of December 31, 2002 and for the period from February 14, 2002 to December 31, 2002 in lieu of the audited
pre-acquisition financial statements of Brience.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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(c) The following is a list of exhibits required by Item 601 of Regulation S-K to be filed as part of this Report. Where
so indicated by footnote, exhibits that were previously filed are incorporated by reference.



EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-K



|            |  |                                                                                                                                                                                                                                                                                                                                            
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                
|            | 
|2.1         |  | Stock Purchase Agreement, dated December 7, 2001, by and between TSI Telecommunication Holdings, Inc. and Verizon Information Services Inc.(1)                                                                                                                                                                                             
|            | 
|2.2         |  | Amended and Restated Agreement of Merger, dated December 7, 2001, as amended and restated as of January 14, 2002, by and among TSI Telecommunication Holdings, Inc., TSI Merger Sub, Inc.,
Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                    
|            | 
|2.3         |  | Asset Transfer Agreement, dated February 14, 2002, between TSI Telecommunication Services Inc. and TSI Network Services Inc.(1)                                                                                                                                                                                                            
|            | 
|3.1         |  | Restated Certificate of Incorporation of TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                            
|            | 
|*3.1.1      |  | Restated Certificate of Incorporation of Syniverse Technologies, Inc.                                                                                                                                                                                                                                                                      
|            | 
|3.2         |  | Bylaws of TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                           
|            | 
|3.3         |  | Amended and Restated Certificate of Incorporation of TSI Telecommunication Holdings, Inc.(1)                                                                                                                                                                                                                                               
|            | 
|3.4         |  | Bylaws of TSI Telecommunication Holdings, Inc.(1)                                                                                                                                                                                                                                                                                          
|            | 
|3.5         |  | Amended and Restated Certificate of Incorporation of TSI Network Services Inc.(1)                                                                                                                                                                                                                                                          
|            | 
|3.6         |  | Bylaws of TSI Network Services Inc.(1)                                                                                                                                                                                                                                                                                                     
|            | 
|3.7         |  | Certificate of Formation of TSI Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                                                                                        
|            | 
|*3.7.1      |  | Restated Certificate of Formation of Syniverse Holdings, LLC                                                                                                                                                                                                                                                                               
|            | 
|3.8         |  | Limited Liability Company Agreement of TSI Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                                                                             
|            | 
|3.9         |  | Certificate of Incorporation of TSI Finance Inc.(1)                                                                                                                                                                                                                                                                                        
|            | 
|3.10        |  | Bylaws of TSI Finance Inc.(1)                                                                                                                                                                                                                                                                                                              
|            | 
|3.11        |  | Amendment No. 1 to Amended and Restated Certificate of Incorporation of TSI Telecommunication Network Services, Inc.(6)                                                                                                                                                                                                                    
|            | 
|3.12        |  | Limited Liability Company Operating Agreement of TSI Brience, LLC.(6)                                                                                                                                                                                                                                                                      
|            | 
|4.1         |  | Purchase Agreement, dated February 5, 2002, among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc., TSI Finance Inc. and
Lehman Brothers Inc.(1)                                                                                                                         
|            | 
|4.2         |  | Indenture, dated February 14, 2002, among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc., TSI Finance Inc. and The Bank of
New York, as trustee.(1)                                                                                                                    
|            | 
|4.3         |  | Exchange and Registration Rights Agreement, dated March 27, 2001, by and among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks
Inc., TSI Finance Inc. and Lehman Brothers Inc.(1)                                                                                            
|            | 
|4.4         |  | Notation of Guarantee, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc. and TSI Finance Inc.(1)                                                                                                                                                                 
|            | 
|4.5         |  | Form of Rule 144A Global Note.(1)                                                                                                                                                                                                                                                                                                          
|            | 
|4.6         |  | Form of Regulation S Global Note.(1)                                                                                                                                                                                                                                                                                                       
|            | 
|4.7         |  | Form of Exchange Note.(1)                                                                                                                                                                                                                                                                                                                  
|            | 
|10.1        |  | Credit Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, Inc., TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc., as Borrower, the several Lenders from time to
time parties thereto, Lehman Brothers Inc., as Lead Arranger and Book Manager and Lehman Commercial Paper Inc., as Administrative Agent.(1)



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|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.2        |  | Guarantee and Collateral Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Telecommunication Services Inc. and certain
of their respective Subsidiaries, and Lehman Commercial Paper Inc., as Administrative Agent.(1)                                                                                                                                        
|            | 
|10.3        |  | Intellectual Property Security Agreement, dated February 14, 2002, between TSI Telecommunication Services Inc. and Lehman Commercial Paper Inc., as administrative agent.(1)                                                                                                                                                                                                                                                         
|            | 
|10.4        |  | Guaranty of Wireless Revenue, dated February 14, 2002, between Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                          
|            | 
|10.5       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and G. Edward Evans.(1) as amended by that certain Amendment to Senior
Management Agreement, dated April 1, 2003, by and among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and G. Edward Evans (2).                                                                               
|            | 
|10.6       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Raymond L. Lawless.(1)                                                                                                                                                                                                                                                                                     
|            | 
|10.7       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Michael O Brien.(1)                                                                                                                                                                                                                                                                                       
|            | 
|10.8       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Paul A. Wilcock.(1)                                                                                                                                                                                                                                                                                        
|            | 
|10.9       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Wayne Nelson.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.10      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Robert Clark.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.11      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Douglas Meyn.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.12      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Gilbert Mosher.(1)                                                                                                                                                                                                                                                                                         
|            | 
|10.13      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Christine Wilson Strom.(1)                                                                                                                                                                                                                                                                                 
|            | 
|10.14      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Robert Garcia, Jr.(1)                                                                                                                                                                                                                                                                                      
|            | 
|10.15      |  | Consulting Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Michael Hartman.(1)                                                                                                                                                                                                                                                                                               
|            | 
|10.16       |  | Securityholders Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest, L.P., G. Edward Evans, Raymond L.
Lawless, Robert Clark, Robert Garcia, Jr., Douglas Meyn, Gilbert Mosher, Wayne Nelson, Michael OBrien, Christine Wilson Strom, Paul Wilcock, Rajesh Shah, Christian Schiller, Arnis Kins, John Kins and Snowlake Investment Pte
Ltd.(1)
|            | 
|10.17       |  | Unit Purchase Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P. and GTCR Co-Invest, L.P.(1)                                                                                                                                                                                                                                                                  
|            | 
|10.18       |  | Stock Purchase Agreement, dated February 14, 2002, by and between TSI Communication Holdings, Inc. and TSI Communication Holdings, LLC.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.19       |  | Purchase Agreement, dated February 14, 2002, between TSI Telecommunication Holdings, LLC and Snowlake Investment Pte Ltd.(1)                                                                                                                                                                                                                                                                                                         
|            | 
|10.20       |  | Co-Interest Purchase Agreement, dated February 14, 2002, between TSI Telecommunication Holdings, LLC and Project Networks Partners LLC.(1)                                                                                                                                                                                                                                                                                           



59



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|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                      
|            | 
|10.21       |  | Purchase Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, Christian Schiller, Arnis Kins and John Kins.(1)                                                                                                                                                                                                                                                                                         
|            | 
|10.22       |  | Professional Services Agreement, dated February 14, 2002, between GTCR Golder Rauner, L.L.C. and TSI Merger Sub, Inc.(1)                                                                                                                                                                                                                                                                                                         
|            | 
|10.23       |  | Transition Services Agreement, dated February 14, 2002, between Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                     
|            | 
|10.24       |  | Registration Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest L.P., G. Edward Evans, Raymond L.
Lawless, Robert Clark, Robert Garcia, Jr., Douglas Meyn, Gilbert Mosher, Wayne Nelson, Michael OBrien, Christine Wilson Strom, Paul Wilcock, Rajesh Shah, Christian Schiller, Arnis Kins, John Kins and Snowlake Investment Pte
Ltd.(1)
|            | 
|10.25       |  | Inducement Agreement, dated February 14, 2002, among GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest, L.P., Snowlake Investment Pte Ltd, GTCR Capital Partners, L.P. and TSI
Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                      
|            | 
|10.26       |  | Termination Agreement and Release (Verizon Data Services), dated February 14, 2002, between Verizon Data Services, Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                               
|            | 
|10.27       |  | Intellectual Property Agreement, dated February 14, 2002, among Verizon Information Services, Inc., Verizon Communications Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                       
|            | 
|10.28       |  | Intellectual Property Letter Agreement, dated February 14, 2002, among Verizon Information Services, Inc., TSI Telecommunication Services Inc. and TSI Telecommunication Holdings,
Inc.(1)                                                                                                                                                                                                                                       
|            | 
|10.29       |  | Mainframe Computing Services Agreement, dated February 14, 2002, between Verizon Information Technologies Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                        
|            | 
|10.30       |  | Distributed Processing Services Agreement, dated February 14, 2002, by and between Verizon Information Technologies Inc. and TSI Telecommunications Services Inc.(1)                                                                                                                                                                                                                                                             
|            | 
|10.31      |  | TSI Telecommunication Holdings, Inc. Founders Stock Option Plan.(1)                                                                                                                                                                                                                                                                                                                                                             
|            | 
|10.32      |  | Form of Nonqualified Stock Option Plan Stock Option Agreement for Management.(1)                                                                                                                                                                                                                                                                                                                                                 
|            | 
|10.33      |  | Form of Nonqualified Stock Option Agreement for Non-Management.(1)                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.34      |  | TSI Telecommunication Holdings, Inc. Non-employee Directors Stock Option Plan (9)                                                                                                                                                                                                                                                                                                                                                
|            | 
|10.35      |  | Form of Nonqualified Stock Option Agreement for Non-employee Directors (9)                                                                                                                                                                                                                                                                                                                                                       
|            | 
|10.36      |  | Senior Management Agreement, dated June 3, 2002 among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Charles A. Drexler.(9)                                                                                                                                                                                                                                                                        
|            | 
|10.37      |  | Senior Management Agreement, dated February 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Linda Hermansen (3).                                                                                                                                                                                                                                                                    
|            | 
|10.38      |  | Senior Management Agreement, dated February 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Gilbert Mosher (3).                                                                                                                                                                                                                                                                     
|            | 
|10.39      |  | Senior Management Agreement, dated May 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Eugene Bergen Henegouwen.(2)                                                                                                                                                                                                                                                                 
|            | 
|10.40      |  | Senior Management Agreement, dated August 14, 2003, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc, and Paul Corrao(7)                                                                                                                                                                                                                                                                      
|            | 
|10.41       |  | First Amendment to Credit Agreement, dated as of September 25, 2003, by and among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Telecommunication Services
Inc., the lenders signatory thereto, and Lehman Commercial Paper Inc. (4)                                                                                                                                                            



60



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|            |  |                                                                                                                                                                                                                                    
|----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                        
|            | 
|10.42       |  | Agreement and Plan of Merger, dated as of July 15, 2003, by and among TSI Telecommunication Network Services Inc., TSI Brience, LLC, Brience, Inc., and the Seller Parties named therein.
(5)                                      
|            | 
|10.43       |  | Exchange Agreement, dates as of July 23, 2003, by and among the Parent and the persons listed on the signature page thereto under the heading Exchanging Parities.
(5)                                                           
|            | 
|10.44       |  | Contribution Agreement, dates as of July 23, 2003, by and among GTCR Fund VII, L.P., GTCR Co-Invest, L.P., and TSI Telecommunication Holdings, LLC. (5)                                                                            
|            | 
|10.45       |  | Second Amendment to Credit Agreement, dated as of March 11, 2004, by and among Syniverse Holdings, LLC, Syniverse Holdings, Inc., Syniverse Technologies, Inc., the lenders signatory thereto,
and Lehman Commercial Paper Inc. (8)
|            | 
|*10.46      |  | Agreement relating to the sale and purchase of the entire issued share capital of Softwright Holdings Limited, dated as of December 19, 2003, by and among TSI Telecommunication Services Inc.
and the Vendors named therein.      
|            | 
|*10.47     |  | Senior Management Agreement, dated December 8, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and F. Terry Kremian.                                                                          
|            | 
|*12.1       |  | Computation of ratio of earnings to fixed charges.                                                                                                                                                                                 
|            | 
|*14.1       |  | Code of Ethics of Syniverse Technologies, Inc.                                                                                                                                                                                     
|            | 
|*21.1       |  | Subsidiaries of Syniverse Holdings, LLC.                                                                                                                                                                                           
|            | 
|*31.1       |  | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer.                                                                                                                           
|            | 
|*31.2       |  | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer.                                                                                                                           
|            | 
|*32.1       |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) by the Chief Executive Officer.                                                                                                           
|            | 
|*32.2       |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) by the Chief Financial Officer.                                                                                                           

---

|(1) | Incorporated by reference to the Registrants Registration Statement on Form S-4 (Registration No. 333-88168).
|--- | --------------------------------------------------------------------------------------------------------------

|(2) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No.
333-88168-1).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (File No.
333-88168-1).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K dated September 25, 2003 (File No. 333-88168-1).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K dated July 23, 2003 (File No. 33-88168-1).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Incorporated by reference to the Registrants Post Effective Amendment No. 2 (Registration No. 333-99293).
|--- | ----------------------------------------------------------------------------------------------------------

|(7) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2003 (File
No. 333-88168-1).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K filed on March 16, 2004 (File No. 333-88168).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | Incorporated by reference to the Registrants Registration Statement on Form S-1 filed September 6, 2002 (Registration No. 333-99293).
|--- | --------------------------------------------------------------------------------------------------------------------------------------

|* | Filed herewith.
|- | ---------------

| | Compensatory plan or agreement.
|- | -------------------------------



61



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##### Table of Contents

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



SYNIVERSE HOLDINGS, LLC AND PREDECESSOR



|                                                                                                                                                                                                                                                                 |  |   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --
|Report of Independent Certified Public Accountants                                                                                                                                                                                                               |  | 63
|                                                                                                                                                                                                                                                                 | 
|Consolidated Balance Sheets at December 31, 2002 and 2003                                                                                                                                                                                                        |  | 64
|                                                                                                                                                                                                                                                                 | 
|Consolidated Statements of Operations for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002, and the year ended December 31, 2003                                   |  | 65
|                                                                                                                                                                                                                                                                 | 
|Consolidated Statements of Changes in Shareholders/Unitholders Equity for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31,
2002, and the year ended December 31, 2003 |  | 66
|                                                                                                                                                                                                                                                                 | 
|Consolidated Statements of Cash Flows for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002, and the year ended December 31, 2003                                   |  | 67
|                                                                                                                                                                                                                                                                 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                                       |  | 68



62



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##### Table of Contents

REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS



Syniverse Holdings, LLC



We have audited the
accompanying consolidated balance sheets of Syniverse Holdings, LLC (formerly TSI Telecommunication Holdings, LLC) and predecessor as of December 31, 2003 and 2002, and the related consolidated statements of operations, changes in
shareholders/unitholders equity and cash flows for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003. Our
audits also included the financial statement schedule listed in the Index at Item 15(a)(2). These financial statements and schedule are the responsibility of the Companys management. Our responsibility is to express an opinion on these
consolidated financial statements and schedule based on our audits.



We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.



In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of
Syniverse Holdings, LLC and predecessor as of December 31, 2003 and 2002, and the consolidated results of its operations and its cash flows for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from
February 14, 2002 to December 31, 2002, and the year ended December 31, 2003, in conformity with accounting principles generally accepted in the United States. Also, in our opinion, the related financial statement schedule, when considered in
relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.



/s/ Ernst & Young LLP



Tampa, Florida

March 25, 2004



63



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##### Table of Contents

SYNIVERSE HOLDINGS, LLC AND PREDECESSOR

CONSOLIDATED BALANCE SHEETS

(DOLLARS IN THOUSANDS)



|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | -------- | - | ---------------- | - | -------- | -
|                                                                                                                                                                                                                                                |  | December 31,2002 |          |   | December 31,2003 |  
|ASSETS                                                                                                                                                                                                                                          |  |                  |          |   |                  |   |          |  
|Current assets:                                                                                                                                                                                                                                 |  |                  |          |   |                  |   |          |  
|Cash                                                                                                                                                                                                                                            |  | $                | 42,190   |   |                  | $ | 8,299    |  
|Accounts receivable, net of allowances of $2,424 and $2,535, respectively                                                                                                                                                                       |  |                  | 55,193   |   |                  |   | 61,611   |  
|Deferred tax assets                                                                                                                                                                                                                             |  |                  | 2,110    |   |                  |   | 369      |  
|Prepaid and other current assets                                                                                                                                                                                                                |  |                  | 5,811    |   |                  |   | 6,284    |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total current assets                                                                                                                                                                                                                            |  |                  | 105,304  |   |                  |   | 76,563   |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|                                                                                                                                                                                                                                                |  |                 
|Property and equipment, net                                                                                                                                                                                                                     |  |                  | 33,728   |   |                  |   | 33,548   |  
|Capitalized software, net of accumulated amortization                                                                                                                                                                                           |  |                  | 73,914   |   |                  |   | 67,653   |  
|Deferred costs, net                                                                                                                                                                                                                             |  |                  | 16,015   |   |                  |   | 14,584   |  
|Goodwill                                                                                                                                                                                                                                        |  |                  | 330,559  |   |                  |   | 331,263  |  
|Identifiable intangibles:                                                                                                                                                                                                                       |  |                  |          |   |                  |   |          |  
|Customer contract, net                                                                                                                                                                                                                          |  |                  | 13,594   |   |                  |   | 9,705    |  
|Trademark                                                                                                                                                                                                                                       |  |                  | 51,700   |   |                  |   | 685      |  
|Customer base, net                                                                                                                                                                                                                              |  |                  | 207,124  |   |                  |   | 196,270  |  
|Other assets                                                                                                                                                                                                                                    |  |                  | 1,130    |   |                  |   |         |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total assets                                                                                                                                                                                                                                    |  | $                | 833,068  |   |                  | $ | 730,271  |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|LIABILITIES AND UNITHOLDERS/SHAREHOLDERS EQUITY                                                                                                                                                                                               |  |                  |          |   |                  |   |          |  
|Current liabilities:                                                                                                                                                                                                                            |  |                  |          |   |                  |   |          |  
|Accounts payable                                                                                                                                                                                                                                |  | $                | 8,204    |   |                  | $ | 4,029    |  
|Accrued payroll and related benefits                                                                                                                                                                                                            |  |                  | 6,672    |   |                  |   | 8,881    |  
|Accrued interest                                                                                                                                                                                                                                |  |                  | 14,608   |   |                  |   | 14,136   |  
|Other accrued liabilities                                                                                                                                                                                                                       |  |                  | 15,841   |   |                  |   | 17,419   |  
|Current portion of Term Note B, net of discount                                                                                                                                                                                                 |  |                  | 52,736   |   |                  |   | 33,589   |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total current liabilities                                                                                                                                                                                                                       |  |                  | 98,061   |   |                  |   | 78,054   |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Long-term liabilities:                                                                                                                                                                                                                          |  |                  |          |   |                  |   |          |  
|Deferred taxes                                                                                                                                                                                                                                  |  |                  | 10,983   |   |                  |   | 19,700   |  
|Subordinated Notes, net of discount                                                                                                                                                                                                             |  |                  | 240,257  |   |                  |   | 241,037  |  
|Term Note B, net of discountless current portion                                                                                                                                                                                               |  |                  | 211,607  |   |                  |   | 174,749  |  
|Other liabilities                                                                                                                                                                                                                               |  |                  | 1,250    |   |                  |   | 2,955    |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total long-term liabilities                                                                                                                                                                                                                     |  |                  | 464,097  |   |                  |   | 438,441  |  
|                                                                                                                                                                                                                                                |  |                 
|Redeemable preferred stock of Brience                                                                                                                                                                                                           |  |                  | 119      |   |                  |   |         |  
|                                                                                                                                                                                                                                                |  |                 
|Commitments and contingencies                                                                                                                                                                                                                   |  |                  |          |   |                  |   |          |  
|                                                                                                                                                                                                                                                |  |                 
|Unitholders/shareholders equity:                                                                                                                                                                                                              |  |                  |          |   |                  |   |          |  
|Class A Preferred Units-an unlimited number authorized, none issued or or outstanding                                                                                                                                                           |  |                  |         |   |                  |   |         |  
|Class B Preferred Units-an unlimited number authorized, 252,367.50 units issued and outstanding at December 31, 2002 and December 31, 2003;
liquidation preference of $252,367                                                                  |  |                  | 252,367  |   |                  |   | 252,367  |  
|Common Units-an unlimited number authorized, 89,099,099 and 90,505,405 units issued at December 31, 2002 and December 31, 2003, respectively
and 88,828,859 and 90,505,405 outstanding at December 31, 2002 and December 31, 2003, respectively |  |                  | 2,967    |   |                  |   | 120,351  |  
|Common stock of Brience-$.01 par value, 30,000,000 shares authorized and 72,266 issued and outstanding at December 31, 2002                                                                                                                     |  |                  | 1        |   |                  |   |         |  
|Additional paid-in capital of Brience                                                                                                                                                                                                           |  |                  | 117,219  |   |                  |   |         |  
|Notes receivable from stockholders of Brience                                                                                                                                                                                                   |  |                  | (312     | ) |                  |   |         |  
|Accumulated deficit                                                                                                                                                                                                                             |  |                  | (101,442 | ) |                  |   | (159,368 | )
|Accumulated other comprehensive income-unrealized gains on investments                                                                                                                                                                          |  |                  |         |   |                  |   | 426      |  
|Less cost of treasury units (270,270 and 0 common units at December 31, 2002 and December 31, 2003, respectively)                                                                                                                               |  |                  | (9       | ) |                  |   |         |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total unitholders/shareholders equity                                                                                                                                                                                                         |  |                  | 270,791  |   |                  |   | 213,776  |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  
|Total liabilities and unitholders/shareholders equity                                                                                                                                                                                         |  | $                | 833,068  |   |                  | $ | 730,271  |  
|                                                                                                                                                                                                                                                |  |                  |          |   |                  |   |          |  



See Notes to
Consolidated Financial Statements



64



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##### Table of Contents

SYNIVERSE HOLDINGS, LLC AND PREDECESSOR

CONSOLIDATED STATEMENTS OF OPERATIONS

(DOLLARS IN THOUSANDS)



|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|------------------------------------------------------------------------------------------------- |  | --------------------------- | ------- | - | --------------------------------------- | - | ------ | ----------------------------------------- |  | - | -------------------------- | - |  | - | ------- | -
|                                                                                                  |  | Predecessor                 |         |   | Successor                               |  
|                                                                                                  |  | Year EndedDecember 31, 2001 |         |   | Period fromJanuary 1 toFebruary 13,2002 |   |        | Period fromFebruary 14 toDecember 31,2002 |  |   | Year EndedDecember 31,2003 |  
|Revenues (including $122,397, $15,838, $1,617 and $2,313 from affiliates, respectively)           |  | $                           | 361,358 |   |                                         | $ | 39,996 |                                           |  | $ | 296,044                    |   |  | $ | 271,408 |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Costs and expenses:                                                                               |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Cost of operations (including $34,460, $4,419, $687 and $457 from affiliates, respectively)       |  |                             | 169,025 |   |                                         |   | 20,655 |                                           |  |   | 130,364                    |   |  |   | 109,744 |  
|Sales and marketing                                                                               |  |                             | 24,348  |   |                                         |   | 2,614  |                                           |  |   | 22,706                     |   |  |   | 18,631  |  
|General and administrative (including $4,511, $443, $0 and $0 from affiliates, respectively)      |  |                             | 41,245  |   |                                         |   | 3,001  |                                           |  |   | 42,630                     |   |  |   | 39,881  |  
|Provision for (recovery of) uncollectible accounts                                                |  |                             | 2,207   |   |                                         |   | 1,340  |                                           |  |   | (693                       | ) |  |   | 466     |  
|Depreciation and amortization                                                                     |  |                             | 15,203  |   |                                         |   | 1,464  |                                           |  |   | 33,285                     |   |  |   | 37,319  |  
|Restructuring                                                                                     |  |                             |        |   |                                         |   |       |                                           |  |   | 2,845                      |   |  |   | 2,164   |  
|Impairment losses on intangible assets                                                            |  |                             |        |   |                                         |   |       |                                           |  |   |                           |   |  |   | 53,712  |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|                                                                                                  |  |                             | 252,028 |   |                                         |   | 29,074 |                                           |  |   | 231,137                    |   |  |   | 261,917 |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Operating income                                                                                  |  |                             | 109,330 |   |                                         |   | 10,922 |                                           |  |   | 64,907                     |   |  |   | 9,491   |  
|                                                                                                  |  |                             |         |  
|Other income (expense), net:                                                                      |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Interest income (including $2,472, $221, $0 and $0 from affiliates, respectively)                 |  |                             | 3,903   |   |                                         |   | 432    |                                           |  |   | 965                        |   |  |   | 768     |  
|Interest expense                                                                                  |  |                             |        |   |                                         |   |       |                                           |  |   | (54,105                    | ) |  |   | (58,128 | )
|Other, net                                                                                        |  |                             | (80     | ) |                                         |   | (19    | )                                         |  |   | (275                       | ) |  |   |        |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|                                                                                                  |  |                             | 3,823   |   |                                         |   | 413    |                                           |  |   | (53,415                    | ) |  |   | (57,360 | )
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Income (loss) from continuing operations before provision for income taxes                        |  |                             | 113,153 |   |                                         |   | 11,335 |                                           |  |   | 11,492                     |   |  |   | (47,869 | )
|Provision for income taxes                                                                        |  |                             | 43,895  |   |                                         |   | 4,418  |                                           |  |   | 9,320                      |   |  |   | 10,057  |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Income (loss) from continuing operations                                                          |  |                             | 69,258  |   |                                         |   | 6,917  |                                           |  |   | 2,172                      |   |  |   | (57,926 | )
|                                                                                                  |  |                             |         |  
|Discontinued operations:                                                                          |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Loss from discontinued operations (including loss on disposal of $312, net of income taxes of $0) |  |                             |        |   |                                         |   |       |                                           |  |   | (1,541                     | ) |  |   |        |  
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Net income (loss)                                                                                 |  |                             | 69,258  |   |                                         |   | 6,917  |                                           |  |   | 631                        |   |  |   | (57,926 | )
|Preferred unit dividends                                                                          |  |                             |        |   |                                         |   |       |                                           |  |   | (22,952                    | ) |  |   | (28,581 | )
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  
|Net income (loss) attributable to common shareholders/unitholders                                 |  | $                           | 69,258  |   |                                         | $ | 6,917  |                                           |  | $ | (22,321                    | ) |  | $ | (86,507 | )
|                                                                                                  |  |                             |         |   |                                         |   |        |                                           |  |   |                            |   |  |   |         |  



See Notes to
Consolidated Financial Statements



65



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##### Table of Contents

SYNIVERSE HOLDINGS, LLC AND PREDECESSOR

CONSOLIDATED STATEMENTS OF CHANGES IN
UNITHOLDERS/SHAREHOLDERS EQUITY

(DOLLARS IN THOUSANDS)



|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|------------------------------------------------------------ |  | --------------------- | - | --------------------- | - | ----------- |  | ----------- | ------- |  | ------------------------ | -- | - | ------------------------------------- | - | -------- | ------------- |  | - | --------------------------------------- | - |  | ------------------------------------------ | -- | - | ----- | - | ---- | - |  | - | ---- | - |  | - | ------- | -
|                                                             |  | Class APreferredUnits |   | Class BPreferredUnits |   | CommonUnits |  | CommonStock |         |  | AdditionalPaid-InCapital |    |   | RetainedEarnings/(AccumulatedDeficit) |   |          | TreasuryUnits |  |   | NotesReceivablefrom BrienceStockholders |   |  | AccumulatedOtherComprehensiveIncome (Loss) |    |   | Total |  
|PREDECESSOR                                                  |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance at December 31, 2000                                 |  | $                     |  |                       | $ |            |  | $           |        |  | $                        | 1  |   |                                       | $ | 100,614  |               |  | $ | 17,038                                  |   |  | $                                          |   |   |       | $ |     |   |  | $ | (346 | ) |  | $ | 117,307 |  
|Net income                                                   |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   | 69,258                                  |   |  |                                            |    |   |       |   |      |   |  |   |     |   |  |   | 69,258  |  
|Dividends declared                                           |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   | (33,750                                 | ) |  |                                            |    |   |       |   |      |   |  |   |     |   |  |   | (33,750 | )
|Tax benefit from exercise of stock options                   |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   | 289      |               |  |   |                                        |   |  |                                            |   |   |       |   |     |   |  |   |     |   |  |   | 289     |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance at December 31, 2001                                 |  |                       |  |                       |   |            |  |             |        |  |                          | 1  |   |                                       |   | 100,903  |               |  |   | 52,546                                  |   |  |                                            |   |   |       |   |     |   |  |   | (346 | ) |  |   | 153,104 |  
|Net income                                                   |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   | 6,917                                   |   |  |                                            |    |   |       |   |      |   |  |   |     |   |  |   | 6,917   |  
|Dividends declared                                           |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   | (26,514                                 | ) |  |                                            |    |   |       |   |      |   |  |   |     |   |  |   | (26,514 | )
|Tax benefit from exercise of stock options                   |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   | 3        |               |  |   |                                        |   |  |                                            |   |   |       |   |     |   |  |   |     |   |  |   | 3       |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance at February 13, 2002                                 |  | $                     |  |                       | $ |            |  | $           |        |  | $                        | 1  |   |                                       | $ | 100,906  |               |  | $ | 32,949                                  |   |  | $                                          |   |   |       | $ |     |   |  | $ | (346 | ) |  | $ | 133,510 |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|SUCCESSOR                                                    |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance at February 14, 2002                                 |  | $                     |  |                       | $ | 252,367     |  | $           | 2,967   |  | $                        | 1  |   |                                       | $ | 117,219  |               |  | $ | (102,073                                | ) |  | $                                          |   |   |       | $ | (312 | ) |  | $ |     |   |  | $ | 270,169 |  
|Net income                                                   |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   | 631                                     |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   | 631     |  
|Cost of treasury units (270,270 common units)                |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   |                                        |   |  |                                            | (9 | ) |       |   |     |   |  |   |     |   |  |   | (9      | )
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance, December 31, 2002                                   |  |                       |  |                       |   | 252,367     |  |             | 2,967   |  |                          | 1  |   |                                       |   | 117,219  |               |  |   | (101,442                                | ) |  |                                            | (9 | ) |       |   | (312 | ) |  |   |     |   |  |   | 270,791 |  
|Net loss                                                     |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   | (57,926                                 | ) |  |                                            |   |   |       |   |     |   |  |   |     |   |  |   | (57,926 | )
|Other comprehensive income - unrealized gains on investments |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   |                                        |   |  |                                            |   |   |       |   |     |   |  |   | 426  |   |  |   | 426     |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Comprehensive income                                         |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   |                                        |   |  |                                            |   |   |       |   |     |   |  |   |     |   |  |   | (57,500 | )
|Issuance of common units                                     |  |                       |  |                       |   |            |  |             | 47      |  |                          |   |   |                                       |   |         |               |  |   |                                        |   |  |                                            |   |   |       |   |     |   |  |   |     |   |  |   | 47      |  
|Acquisition of Brience, Inc. in common control merger        |  |                       |   |                       |   |             |  |             | 117,337 |  |                          | (1 | ) |                                       |   | (117,219 | )             |  |   |                                        |   |  |                                            |   |   |       |   | 312  |   |  |   |     |   |  |   | 429     |  
|Cost of treasury units (270,270 common units)                |  |                       |  |                       |   |            |  |             |        |  |                          |   |   |                                       |   |         |               |  |   |                                        |   |  |                                            | 9  |   |       |   |     |   |  |   |     |   |  |   | 9       |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  
|Balance, December 31, 2003                                   |  | $                     |  |                       | $ | 252,367     |  | $           | 120,351 |  | $                        |   |   |                                       | $ |         |               |  | $ | (159,368                                | ) |  | $                                          |   |   |       | $ |     |   |  | $ | 426  |   |  | $ | 213,776 |  
|                                                             |  |                       |   |                       |   |             |  |             |         |  |                          |    |   |                                       |   |          |               |  |   |                                         |   |  |                                            |    |   |       |   |      |   |  |   |      |   |  |   |         |  



See Notes to
Consolidated Financial Statements



66



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##### Table of Contents

SYNIVERSE HOLDINGS, LLC AND PREDECESSOR

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLARS IN THOUSANDS)



|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|---------------------------------------------------------------------------------------------------- |  | -------------------------- | ------- | - | --------------------------------------- | - | ------- | ------------------------------------------ |  | - | -------------------------- | - |  | - | ------- | -
|                                                                                                     |  | Predecessor                |         |   | Successor                               |  
|                                                                                                     |  | Year EndedDecember 31,2001 |         |   | Period fromJanuary 1 toFebruary 13,2002 |   |         | Period fromFebruary 14 to December 31,2002 |  |   | Year EndedDecember 31,2003 |  
|Cash flows from operating activities                                                                 |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Net income (loss)                                                                                    |  | $                          | 69,258  |   |                                         | $ | 6,917   |                                            |  | $ | 631                        |   |  | $ | (57,926 | )
|Adjustments to reconcile net income (loss) to net cash provided by operating activities:             |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Depreciation and amortization                                                                        |  |                            | 15,203  |   |                                         |   | 1,464   |                                            |  |   | 41,962                     |   |  |   | 49,265  |  
|Provision for (recovery of) uncollectible accounts                                                   |  |                            | 2,207   |   |                                         |   | 1,340   |                                            |  |   | (693                       | ) |  |   | 466     |  
|Deferred income tax benefit (expense)                                                                |  |                            | (4,748  | ) |                                         |   | (586    | )                                          |  |   | 8,873                      |   |  |   | 10,458  |  
|Pension and other employee retirement benefits                                                       |  |                            | 3,861   |   |                                         |   | 546     |                                            |  |   |                           |   |  |   |        |  
|Deferred charges                                                                                     |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | (2,000  | )
|Gain on forgiveness of debt                                                                          |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | (1,250  | )
|Loss on disposition of property                                                                      |  |                            |        |   |                                         |   |        |                                            |  |   | 1,472                      |   |  |   | 327     |  
|Impairment losses on intangible assets                                                               |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | 53,712  |  
|Changes in operating assets and liabilities:                                                         |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Accounts receivable                                                                                  |  |                            | 30,498  |   |                                         |   | 14,682  |                                            |  |   | 7,475                      |   |  |   | (6,644  | )
|Other current assets                                                                                 |  |                            | 3,912   |   |                                         |   | (1,641  | )                                          |  |   | (1,814                     | ) |  |   | 1       |  
|Accounts payable                                                                                     |  |                            | (7,146  | ) |                                         |   | 2,732   |                                            |  |   | (4,350                     | ) |  |   | (1,874  | )
|Other current liabilities                                                                            |  |                            | 18,236  |   |                                         |   | (24,269 | )                                          |  |   | 6,602                      |   |  |   | (254    | )
|Other assets                                                                                         |  |                            |        |   |                                         |   |        |                                            |  |   | (393                       | ) |  |   | 1,130   |  
|Other liabilities                                                                                    |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | 2,955   |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Net cash provided by operating activities                                                            |  |                            | 131,281 |   |                                         |   | 1,185   |                                            |  |   | 59,765                     |   |  |   | 48,366  |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Cash flows from investing activities                                                                 |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Capital expenditures                                                                                 |  |                            | (10,406 | ) |                                         |   | (606    | )                                          |  |   | (12,278                    | ) |  |   | (18,280 | )
|Acquisition of Softwright Holdings Limited net of cash acquired                                      |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | (603    | )
|(Increase) decrease in note receivable-affiliate                                                     |  |                            | (89,425 | ) |                                         |   | 35,387  |                                            |  |   |                           |   |  |   |        |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Net cash provided by (used in) investing activities                                                  |  |                            | (99,831 | ) |                                         |   | 34,781  |                                            |  |   | (12,278                    | ) |  |   | (18,883 | )
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Cash flows from financing activities                                                                 |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Dividends paid                                                                                       |  |                            | (33,750 | ) |                                         |   | (11,250 | )                                          |  |   |                           |   |  |   |        |  
|Debt issue fees paid                                                                                 |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | (1,683  | )
|Excess cash received at purchase date                                                                |  |                            |        |   |                                         |   |        |                                            |  |   | 1,884                      |   |  |   |        |  
|Principal payments on long-term debt                                                                 |  |                            |        |   |                                         |   |        |                                            |  |   | (15,641                    | ) |  |   | (62,059 | )
|Retirement of short-term debt                                                                        |  |                            |        |   |                                         |   |        |                                            |  |   | (30,430                    | ) |  |   |        |  
|Issuance of common units                                                                             |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | 65      |  
|Repurchase of common units                                                                           |  |                            |        |   |                                         |   |        |                                            |  |   | (9                         | ) |  |   | (9      | )
|Notes receivable from stockholders of Brience                                                        |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | 312     |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Net cash used in financing activities                                                                |  |                            | (33,750 | ) |                                         |   | (11,250 | )                                          |  |   | (44,196                    | ) |  |   | (63,374 | )
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Net increase (decrease) in cash                                                                      |  |                            | (2,300  | ) |                                         |   | 24,716  |                                            |  |   | 3,291                      |   |  |   | (33,891 | )
|Cash at beginning of period                                                                          |  |                            | 2,584   |   |                                         |   | 284     |                                            |  |   | 38,899                     |   |  |   | 42,190  |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Cash at end of period                                                                                |  | $                          | 284     |   |                                         | $ | 25,000  |                                            |  | $ | 42,190                     |   |  | $ | 8,299   |  
|                                                                                                     |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Supplemental cash flow information                                                                   |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Interest paid                                                                                        |  | $                          |        |   |                                         | $ |        |                                            |  | $ | 30,187                     |   |  | $ | 46,152  |  
|Income taxes paid                                                                                    |  |                            | 24,019  |   |                                         |   | 22,554  |                                            |  |   | 1,605                      |   |  |   |        |  
|                                                                                                     |  |                            |         |  
|Supplemental non-cash transactions                                                                   |  |                            |         |   |                                         |   |         |                                            |  |   |                            |   |  |   |         |  
|Note receivable of $63,525 and accrued liabilities of $48,261 distributed as dividend to stockholder |  |                            |        |   |                                         |   | 15,264  |                                            |  |   |                           |   |  |   |        |  
|Reduction of goodwill and restructuring reserve accrual                                              |  |                            |        |   |                                         |   |        |                                            |  |   | 666                        |   |  |   | 284     |  
|Acquisition of Brience with 100,000 common units of LLC                                              |  |                            |        |   |                                         |   |        |                                            |  |   |                           |   |  |   | 3       |  



See Notes to
Consolidated Financial Statements



67



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##### Table of Contents

SYNIVERSE HOLDINGS, LLC AND PREDECESSOR

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(DOLLARS IN THOUSANDS)



1. Description of Business



We are a global communications technology company specializing in innovative business and network engineering solutions that manage and interconnect voice
and data systems throughout the world. Our services include transaction-based technology interoperability, network, number portability and call processing services that simplify the interconnection and management of complex voice and data networks.
We address technology interoperability complexities as the largest clearinghouse in the United States for the billing and settlement of wireless roaming telephone calls, with an estimated market share of approximately 60% in 2003 based on wireless
subscribers. We also own one of the largest unaffiliated Signaling System 7 (SS7) networks in the United States. SS7 is the telecommunication industrys standard network signaling protocol used by nearly all carriers to enable the setup and
delivery of wireless and wireline telephone calls. Our network services also allow our customers to access intelligent network services and monitor network performance and subscriber activity on a real-time basis. In addition, we are the
industrys leading developer and provider of call processing solutions that enable seamless regional, national and international wireless roaming telephone service.



On March 1, 2004, we changed our corporate name from TSI Telecommunication Holdings, LLC to Syniverse Holdings, LLC. In
addition, we changed the names of each of our subsidiaries, as detailed in Note 2 below.



2. Summary of Significant Accounting Policies



Basis of Presentation and Principles of Consolidation



The consolidated financial statements include the accounts of Syniverse Holdings, LLC (Syniverse LLC, formerly TSI Telecommunication Holdings LLC), Syniverse Holdings, Inc. (Syniverse Inc., formerly TSI
Telecommunication Holdings Inc.), Syniverse Technologies, Inc. (Syniverse, formerly TSI Telecommunication Services Inc.), Syniverse Finance, Inc. (Syniverse Finance, formerly TSI Finance Company), Syniverse Networks, Inc. (Syniverse Networks,
formerly TSI Telecommunication Networks Inc.), Syniverse Technologies, BV (formerly TSI Telecommunication Services, BV), for periods beginning on and after February 14, 2002, Syniverse Brience, LLC (Syniverse Brience, formerly TSI Brience, LLC) and
Softwright Holdings Limited (Softwright). References to the Company or we include all of the consolidated companies. All significant intercompany balances and transactions have been eliminated.



Syniverse, previously known as GTE Telecommunication Services, Inc., was
incorporated in 1987, as an indirect wholly owned subsidiary of GTE Corporation (GTE). As a result of the merger of Bell Atlantic Corporation (Bell Atlantic) and GTE in June 2000, Syniverse became an indirect wholly owned subsidiary of Verizon
Communications Inc. (Verizon). The merger of Bell Atlantic and GTE was accounted for as a pooling of interests business combination. Accordingly, references to affiliates and related parties include Verizon and its predecessor companies for all
periods presented.



On February 14, 2002, Syniverse Inc.
acquired all of the outstanding stock of Syniverse from Verizon Information Services Inc, a subsidiary of Verizon Communications Inc. (collectively, Verizon). A majority of the common and preferred units issued by Syniverse LLC at the acquisition
date and outstanding at December 31, 2002 and 2003 are owned by certain funds or individuals affiliated with GTCR Golder Rauner, LLC (GTCR), a private equity investment fund. As of February 14, 2002, Verizon is no longer an affiliate or related
party.



As described more fully in Note 5, Syniverse LLC
acquired Brience, Inc. (Brience) in July 2003. Due to common control of both Syniverse LLC and Brience since February 14, 2002 by funds associated with GTCR, the acquisition was accounted for in a manner similar to a pooling of interests. Therefore,
all historical financial statements of Syniverse LLC since that date have been restated herein to include Briences historical financial results.



As described more fully in Note 6, Syniverse LLC acquired Softwright Holdings Limited on December 19, 2003. The acquisition was accounted for using the
purchase method of accounting.



The term successor
refers to Syniverse Holdings, LLC (Syniverse LLC) and all of its subsidiaries, including Syniverse, following the acquisition of Syniverse on February 14, 2002. The term predecessor refers to Syniverse prior to being acquired by
Syniverse Inc. on February 14, 2002.



68



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Use of Estimates



We prepare our financial statements using accounting principles generally accepted in the United States, which require
management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.



Revenue Recognition



We derive revenues from five primary categories: Network Services, Number Porting Services, Technology Interoperability Services, Call Processing
Services, and Other Outsourcing Services. The revenue recognition policy for each of these areas is as follows:



| |  | Network Services primarily generate revenue by charging per-transaction processing fees, circuit fees and port fees. The monthly SS7 connection fee is based on the
number of links as well as the number of switches to which a customer signals and is recognized in the period when the service is rendered. The per-transaction fees are based on the number of subscriber events and database queries made through our
network and are recognized as revenues at the time the transactions are performed. Software revenues are generated through license fees, maintenance agreements and professional services. License fee revenues consist principally of revenue from the
licensing of our software and are generally recognized when a contract is executed, all delivery obligations have been met, the fee is fixed or determinable, and collectibility is probable. Generally, these policies have resulted in our recognition
of revenue from the software license fee on a straight-line basis over the period beginning with the completion of implementation and customer acceptance and ending with conclusion of the first maintenance period. Maintenance agreements call for us
to provide technical support and software enhancements to customers. Revenue on technical support and software enhancement rights is recognized ratably over the term of the support agreement.Professional services include consulting, training
and installation services to our customers. Revenue from such services is generally recognized on a straight-line basis over the same period as the software license fee.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Number Porting Servicesprimarily generate revenues by charging per-transaction processing fees, monthly fixed fees, and fees for customer implementations. We defer
revenues related to customer implementations, and recognize these fees on a straight-line basis over the life of the initial customer agreements. We recognize processing revenues at the time the transactions and services are performed.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Technology Interoperability Services primarily generate revenues by charging per-transaction processing fees. For our wireless roaming, wireline and SMS clearinghouse
services, revenues vary based on the number of data/messaging records provided to us by telecommunications carriers for aggregation, translation and distribution among carriers. These revenues are based on the number of wireless roaming subscriber
telephone calls and messages that take place on our customers networks. We recognize revenues at the time the transactions are performed.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Call Processing Services primarily generate revenue by charging per-transaction processing fees and software licensing fees. The per-transaction fee is based on the
number of validation, authorization, and other call processing messages generated by wireless subscribers. These revenues are recognized at the time the transactions are performed. We provide turnkey software solutions for which we charge customers
a software licensing fee. For turnkey software, we recognize revenue when accepted by the customer.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other Outsourcing Services primarily generate revenue by charging per-subscriber fees. We recognize revenues at the time the service is performed.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------



Due to our billing cycles, which for some
products lag as much as 60 days after services are rendered, we estimate the amounts of unbilled revenue each reporting period.



Advertising Costs



We expense advertising costs as they are incurred. Advertising costs charged to expense amounted to $186, $22, $217 and $108 for the year ended December
31, 2001, the periods from January 1, 2002 to February 13, 2002, and February 14, 2002 to December 31, 2002, and the year ended December 31, 2003, respectively.



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Research and Development



Research and development costs are charged to expense as incurred. Research and development costs which are included in
general and administrative expense in the consolidated statements of operations amounted to $26,658, $2,527, $22,494, and $15,616 for the year ended December 31, 2001, the periods from January 1, 2002 to February 13, 2002, and February 14, 2002 to
December 31, 2002, and the year ended December 31, 2003, respectively.



Stock-Based Compensation



We participated in
stock-based employee compensation plans sponsored by Verizon for the periods ending 2000, 2001 and the period from January 1, 2002 to February 13, 2002. We participated in a stock-based employee compensation plan sponsored by Brience for the period
from February 14, 2002 to December 31, 2002.



On May 16, 2002,
Syniverse Inc.s Board of Directors adopted a Founders Stock Option Plan for non-employee directors, executives and other key employees of Syniverse Inc. In addition, the Board of Directors adopted a Directors Stock Option Plan on
August 2, 2002.



We account for these plans and related grants
there under using the intrinsic value method prescribed in APB Opinion No. 25, Accounting for Stock Issued to Employees. However, pro forma information regarding net income and earnings per share as required by Statement of Financial
Accounting Standards No. 123, Accounting for Stock Based Compensation, (SFAS 123) is determined as if we had accounted for our employee and non-employee director stock options under the fair value method of SFAS 123. Pro forma fair value
method amounts are not materially different from the intrinsic value method and hence are not disclosed.



Employee Benefit Plans



We participated in Verizon benefit plans in 2001, and the period from January 1, 2002 to February 13, 2002. Under these plans, pension and postretirement
health care and life insurance benefits earned during the year as well as interest on projected benefit obligations were accrued currently. Prior service costs and credits resulting from changes in plan benefits were amortized over the average
remaining service period of the employees expected to receive benefits.



Cash



We consider all highly liquid
investments of operating cash with original maturities of three months or less to be a cash or cash equivalent. Cash and cash equivalents include money market funds, commercial paper and various deposit accounts and are stated at cost, which
approximates fair value.



Trade Receivables



Trade receivables are recorded at net realizable value or the amount that
we expect to collect on our gross customer trade receivables. We establish a general reserve based on historical experience, in addition to a reserve for specific receivables with known collection problems due to circumstances such as liquidity or
bankruptcy. Collection problems are identified using an aging of receivables analysis based on invoice due dates. Items that are deemed uncollectible are written off against the allowance for collection losses. We do not require deposits or other
collateral from our customers and hence we are at risk for all accounts receivable.



We charge interest on overdue receivables, but do not recognize interest income until collected. At December 31, 2002 and 2003, accounts receivable includes interest receivable totaling $2,927 and $3,900,
respectively, related to finance charges to customers, but the entire amount is offset by a contra account.



Income Taxes



Syniverse LLC is treated as partnership for income tax purposes, and accordingly, partnership income or loss is passed through to the unitholders.
However, Syniverse LLC owns all of the outstanding stock of Syniverse, Inc. which files a consolidated income tax return with its wholly-owned subsidiaries and therefore the accompanying financial statements include a provision for income taxes
related to Syniverse Inc. and its subsidiaries using Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. Brience, Inc. will file a separate consolidated income tax return for periods prior to its
acquisition by Syniverse LLC (see Note 5).



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Property and Equipment, Net



Property and equipment consist primarily of hardware and software equipment necessary to operate our SS7 network, leasehold
improvements and furniture in our headquarter facilities, which are recorded at cost and depreciated using the straight-line method over the estimated remaining lives.



The asset lives used are presented in the following table:



|                       |  |                                         
|---------------------- |  | ----------------------------------------
|                       |  | Average Lives (In Years)                
|Equipment              |  | 5-10                                    
|Furniture and fixtures |  | 6                                       
|Leasehold improvements |  | Shorter of term oflease or life of asset



When the depreciable
assets are replaced, retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the respective accounts and any gains or losses on disposition are recognized in income.



Betterments, renewals and extraordinary repairs which increase the value or
extend the life of the asset are capitalized. Repairs and maintenance costs are expensed as incurred.



Computer Software Costs



We capitalize the cost of internal-use software, which has a useful life in excess of one year in accordance with Statement of Position (SOP) No. 98-1,
Accounting for the Costs of Computer Software Developed or Obtained for Internal Use. Subsequent additions, modifications or upgrades to internal-use software are capitalized only to the extent that they allow the software to perform a task
it previously did not perform. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized computer software costs are amortized using the straight-line method over a period of three years. Amortization
of capitalized software costs included in depreciation and amortization in the consolidated statements of income was $7,186, $524, $9,801, and $11,007 for the periods 2001, January 1, 2002 to February 13, 2002, and February 14, 2002 to December 31,
2002, and December 31, 2003, respectively.



Deferred
Financing Costs



We amortize deferred financing costs
using the effective interest method and record such amortization as interest expense. Amortization of debt discount and annual commitment fees for unused portions of available borrowings are also recorded as interest expense.



Identifiable Intangible Assets



We amortize identifiable intangible assets with other than indefinite lives
over their contractual or estimated useful lives using the straight-line method. As of December 31, 2002 and 2003, accumulated amortization totaled $13,282 and $28,545, respectively. There were no identifiable intangible assets prior to February 14,
2002.



Impairment Losses



We evaluate our depreciable and amortizable long-lived assets for
impairments under Statement of Financial Accounting Standards No. 144 (SFAS 144), Accounting for the Impairment or Disposal of Long Lived Assets. Consistent with prior guidance, SFAS 144 requires a three-step approach for
recognizing and measuring the impairment of assets to be held and used. We recognize impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by
those assets are less than the assets carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. Fair value is estimated based on discounted future cash flows. Assets to be sold must be
stated at the lower of the assets carrying amount or fair value and depreciation is no longer recognized. SFAS 144 was adopted on January 1, 2002. Prior to SFAS 144s adoption, we accounted for impairments under Statement of Financial
Accounting Standards No. 121 (SFAS 121), Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.



Derivatives



Financial Accounting Standards Board Statement No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133),
requires companies to recognize all of its derivative instruments as either assets or liabilities in the statement of



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financial position at fair value. To protect against interest rate risk, we acquired an interest rate cap during the year
ended December 31, 2003. Because the interest rate cap did not meet the criteria for hedge accounting, all changes in fair value are immediately recognized in earnings (see Note 14).



Comprehensive income



Accumulated other comprehensive income relates entirely to unrealized gains on available-for-sale securities. Accumulated unrealized gains on
available-for-sale securities were $426 for the year ended December 31, 2003.



Available-for-Sale Securities



Our investments in equity securities are composed of a less than 10% ownership in a small publicly held company, and are categorized as available-for-sale as defined by Statement of Financial Accounting Standards (SFAS) No. 115,
Accounting for Certain Investments in Debt and Equity Securities. These equity securities are included in other current assets in the accompanying consolidated balance sheets and are recorded at fair value based on quoted market
prices. The cost of each equity security is determined primarily on a specific identification method. Unrealized holding gains and losses are reflected, net of income tax, as a separate component of accumulated other comprehensive income (loss). At
December 31, 2003 and 2002, available-for-sale securities had a fair value of $426 and $0, respectively. Because the cost of these securities had previously been written off due to other-than temporary declines in value, the fair value of these
securities reflects unrealized holding gains of $426 at December 31, 2003.



Segment Reporting



For
all periods reported, we operated as a single segment.



Earnings Per Share



We do not present earnings
per share since Syniverse LLCs units are not publicly traded and the calculation would be meaningless due to the small number of units outstanding.



Reclassifications



Certain prior year balances have been reclassified to conform to 2003 presentation.



Critical Accounting Estimates



The following summarizes our most significant accounting estimates.



Allowance for Doubtful Accounts



We maintain allowances for doubtful accounts for estimated losses resulting
from the inability of our customers to pay their invoices in full. We regularly review the adequacy of the accounts receivable allowance after considering the size of the accounts receivable balance, each customers expected ability to pay and
our collection history with each customer. We review significant invoices that are past due to determine if an allowance is necessary based on the risk category using the factors described above. In addition, we maintain a general reserve for
doubtful accounts by applying a percentage based on the aging category. If our customers financial conditions or the economy in general deteriorates, we may need to increase these allowances for doubtful accounts.



Credit Memos



We maintain a general reserve based on our historical credit memo activity.
In addition, we establish credit memos resulting from specific customer matters. This allowance is recorded as a direct reduction of accounts receivable. If our billing errors or discrepancies are not resolved satisfactorily, or our customers
disputes over billing are not resolved satisfactorily, increases to the allowance would be required.



Impairment



We review long-lived assets including intangibles for impairment when events or changes in circumstances indicate the



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carrying value of such assets may not be recoverable and will review goodwill and intangibles at least annually for
impairment. We also evaluate the useful life of assets periodically. The review consists of a comparison of the carrying value of the assets with the assets expected future undiscounted cash flows without interest costs. Estimates of expected
future cash flows represent managements best estimate based on reasonable and supportable assumptions and projections. If actual market conditions are less favorable than those projected by management, asset write-downs may be required.
Management will continue to evaluate overall industry and company specific circumstances and conditions as necessary.



Restructuring



We have made estimates of the costs to be incurred as a part of our initial restructuring plan arising from our acquisition. These amounts were accrued as
a part of our purchase accounting adjustments. These estimates include the amount of severance and other costs expected to be paid between April 2002 and the first quarter of 2003. We have also made estimates of the costs to be incurred as a part of
our August 29, 2002, February 28, 2003, and July 2003 restructurings. These estimates relate to severance related costs expected to be incurred between August 2002 and November 2003. The payments related to these restructurings were completed in
2003.



Purchase Accounting



We have made estimates of the fair values of the assets acquired as of
February 14, 2002 based on appraisals from third parties and also based on certain internally generated information. We have made similar estimates of the fair values of the assets acquired as of December 19, 2003 as part of our purchase of
Softwright based on internally prepared analyses. In addition, we have estimated the economic lives of certain of these assets and these lives were used to calculate depreciation and amortization expense.



Income Taxes



We review our deferred tax assets on a regular basis to evaluate their
recoverability based on projections of the turnaround timing of our deferred tax liabilities, projections of future taxable income, and tax planning strategies that we might employ to utilize such assets, including net operating loss carryforwards.
Unless it is more likely than not that we will recover such assets through the above means, we establish a valuation allowance. The effective tax rate differs from the statutory tax rate due primarily to the pooling of Briences
results, impairment losses on intangible assets, and to a lesser extent to state and local taxes. Brience had incurred net operating losses since inception and hence was unable to recognize the benefit of these losses in its financial
statements tax provision. As a result of a review undertaken at December 31, 2003, we concluded that it was appropriate to establish a full valuation allowance for our deferred tax assets.



3. Recent Accounting Pronouncements



In January 2003, the FASB issued FASB Interpretation No. 46
Consolidation of Variable Interest Entities.This interpretation of Accounting Research Bulletin No. 51, Consolidated Financial Statements,(FIN 46) addresses consolidation by business enterprises of
variable interest entities. Under current practice, two enterprises generally have been included in consolidated financial statements because one enterprise controls the other through voting interests. This interpretation defines the concept of
variable interests and requires existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse the risks among the parties involved. This interpretation
applies immediately to variable interest entities created after January 31, 2003, and to variable interest entities in which an enterprise obtains an interest after that date. Nonpublic entities with an interest in an entity that is subject to this
Interpretation and that is created after December 31, 2003, shall apply this Interpretation to that entity immediately. Nonpublic enterprises shall apply this Interpretation to all entities that are subject to this Interpretation by the
beginning of the first annual period beginning after December 15, 2004. If it is reasonably possible that an enterprise will consolidate or disclose information about a variable interest entity when this interpretation becomes effective, the
enterprise shall disclose information about those entities in all financial statements issued after January 31, 2003. The interpretation may be applied prospectively with a cumulative-effect adjustment as of the date on which it is first applied or
by restating previously issued financial statements for one or more years with a cumulative-effect adjustment as of the beginning of the first year restated. We do not believe that FIN 46 has any impact on our financial statements currently.
However, if we enter into certain types of transactions in the future, including special purpose entities, then consolidation of that entity might be required.



In April 2003, the FASB issued Statement No. 149, Accounting for Amendment of Statement 133 on Derivative Instruments and Hedging
Activities,(SFAS 149). The Statement amends and clarifies accounting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities under Statement 133. This Statement is
effective for contracts entered into or modified after June 30, 2003. The adoption of this statement has not had a material impact on our financial statements.



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In May 2003, the FASB issued Statement No. 150, Accounting for Certain Financial Instruments
with Characteristics of both Liabilities and Equity, (SFAS 150). This statement establishes standards for how an issuer classifies and measures financial instruments with characteristics of both liabilities and equity. This Statement is
effective for financial instruments entered into or modified after May 31, 2003. The adoption of this statement has not had a material impact on our financial statements.



4. Acquisition of Syniverse



On February 14, 2002, Syniverse Inc. acquired Syniverse by merging its wholly owned subsidiary, TSI Merger Sub, Inc., with and into Syniverse (the
acquisition). Pursuant to the merger agreement, Verizon Information Services Inc. received merger consideration equal to $770,000 in cash. Fees and expenses of approximately $37,300 were paid. A working capital adjustment of $1,400 was
paid to Verizon in May 2002. Syniverse Inc. is a corporation formed by Syniverse LLC, which is owned by GTCR Fund VII, L.P., certain of its affiliates and co-investors, G. Edward Evans (Syniverses chief executive officer) and certain other
members of Syniverses management. Syniverse is a leading provider of mission-critical transaction processing services to wireless telecommunications carriers throughout the world. As a result of the acquisition, the ultimate Parent expects to
increase market share due to independence from Verizon.



The
acquisition was funded as follows:



|                                                                                      |  |   |        
|------------------------------------------------------------------------------------- |  | - | -------
|Equity contribution                                                                   |  | $ | 255,335
|Cash held by Syniverse                                                                |  |   | 25,000 
|Working capital adjustment paid in May 2002                                           |  |   | 1,400  
|Acquisition fees and expenses paid after closing using cash generated from operations |  |   | 6,948  
|Senior credit facility                                                                |  |   |        
|Revolving credit facility                                                             |  |   | 5,430  
|Term loan, net of discount                                                            |  |   | 275,000
|Senior Notes, net of discount                                                         |  |   | 239,570
|                                                                                      |  |   |        
|                                                                                      |  | $ | 808,683
|                                                                                      |  |   |        



The following table
summarizes the fair values of the assets acquired and liabilities assumed at February 14, 2002, the date of the acquisition.



|                                                                                 |  |   |          |  
|-------------------------------------------------------------------------------- |  | - | -------- | -
|Cash and other current assets                                                    |  | $ | 92,499   |  
|Property and equipment                                                           |  |   | 35,049   |  
|Intangible assets not subject to amortization -                                  |  |   |          |  
|Trademarks                                                                       |  |   | 51,700   |  
|Intangible assets subject to amortization(19 year weighted-average useful life) |  |   |          |  
|Software (11 year weighted-average useful life)                                  |  |   | 78,532   |  
|Contracts (4 year weighted-average useful life)                                  |  |   | 17,400   |  
|Customer Base (20 year weighted-average useful life)                             |  |   | 216,600  |  
|Deferred financing costs                                                         |  |   | 19,269   |  
|Goodwill                                                                         |  |   | 330,559  |  
|                                                                                 |  |   |          |  
|Total assets acquired                                                            |  |   | 841,608  |  
|Current liabilities, excluding long-term debt                                    |  |   | (62,940  | )
|Restructuring                                                                    |  |   | (3,333   | )
|Long-term debt                                                                   |  |   | (520,000 | )
|                                                                                 |  |   |          |  
|Total liabilities assumed                                                        |  |   | (586,273 | )
|                                                                                 |  |   |          |  
|Net assets acquired                                                              |  | $ | 255,335  |  
|                                                                                 |  |   |          |  



The acquisition was
accounted for as a purchase in accordance with Statement of Financial Accounting Standards (SFAS) No. 141, Business Combinations, and EITF 88-16, Basis in Leveraged Buyout Transactions.



The purchase accounting adjustments have been recorded in the condensed
consolidated balance sheet as of February 14, 2002 and are reflected in all periods subsequent to February 13, 2002. The excess purchase price we paid over the fair market value of the tangible assets and liabilities of Syniverse as of the date of
the



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acquisition was approximately $330,559 and is reflected as goodwill in the accompanying condensed consolidated balance
sheet. The purchase price resulted in the recognition of goodwill due to additional value attributable to Syniverses market share, enterprise product development capabilities and management team.



In accordance with SFAS No. 142, Goodwill and Other Intangible Assets,
the new intangible asset balance has been allocated between identifiable intangible assets and remaining goodwill. Goodwill will not be amortized, but is subject to an ongoing assessment for impairment. As a part of the transactions, we have elected
for income tax purposes to treat the acquisition as an asset purchase resulting in a step-up in tax basis equal to the new book basis. As a result, all deferred taxes were eliminated in purchase accounting. Goodwill is being deducted for tax
purposes over a 15-year period beginning February 14, 2002.



The unaudited pro forma results presented below include the effects of the acquisition as if it had been consummated at the beginning of year and the period prior to acquisition. Pro forma adjustments arise due to the asset revaluation and
debt incurred. The unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated at the beginning of the year prior
to acquisition.



|                                                     |  |                            |         |                                         |   |        |  
|---------------------------------------------------- |  | -------------------------- | ------- | --------------------------------------- | - | ------ | -
|                                                     |  | Predecessor                |        
|                                                     |  | Year EndedDecember 31,2001 |         | Period fromJanuary 1 toFebruary 13,2002 |  
|Pro Forma:                                           |  |                            |         |                                         |   |        |  
|Revenues                                             |  | $                          | 361,358 |                                         | $ | 39,996 |  
|Net income                                           |  |                            | 25,464  |                                         |   | 1,133  |  
|Net income (loss) attributable to common unitholders |  | $                          | 227     |                                         | $ | (1,909 | )



5. Acquisition of Brience



On July 23, 2003, we acquired Brience by merging Brience
with and into Syniverse Brience, a newly formed wholly owned subsidiary of Syniverse Networks with Syniverse Brience continuing as the surviving entity and a wholly owned subsidiary of Syniverse Networks. Historically, Brience developed and sold
information access and integration software products to large enterprises. At the time of the merger, however, Briences business was limited to selling and servicing its Mobile Processing Server product.



As a result of the merger, each share of Series C Preferred Stock of Brience
outstanding as of the effective time of the merger was converted into a right to receive a pro rata share of 1.67 shares of Class B Common Stock, par value $.01 per share (the merger consideration), of Syniverse Networks, under the terms
and subject to the conditions set forth in the merger agreement. All other outstanding classes of stock of Brience were canceled and retired with no right to payment under the terms of the merger agreement. Concurrent with the merger, the holders of
Series C Preferred Stock other than GTCR Fund VII, L.P. and GTCR Co-Invest, L.P. entered into an exchange agreement with Syniverse LLC pursuant to which such parties (the exchanging parties) exchanged all of the merger consideration
received by the exchanging parties in the merger in exchange for a pro rata portion of 19,775.01 Common Units of Syniverse LLC. Also concurrent with the merger, GTCR Fund VII, L.P. and GTCR Co-Invest, L.P. (the investors) entered into a
contribution agreement pursuant to which the investors agreed to contribute to Syniverse LLC all of the merger consideration received by the investors in the merger in exchange for a pro rata portion of 80,224.99 Common Units of Syniverse LLC.



At the time of the merger, GTCR Fund VII, L.P. and GTCR
Co-Invest, L.P. collectively were majority owners of Brience and owned approximately 64% of the outstanding common stock of Brience on a fully diluted basis. GTCR Fund VII, L.P. and GTCR Co-Invest, L.P. collectively own approximately 52% of the
outstanding common units of Syniverse LLC and their affiliate, GTCR Fund VII/A, L.P., owns approximately 26% of the common units of Syniverse LLC. Since funds associated with GTCR had a controlling interest in both Brience and Syniverse LLC at the
time of the merger, the transaction is accounted for as a combination of entities under common control, similar to a pooling of interests, whereby the assets and liabilities of Brience were combined at their historical amounts as of the date that
GTCR had control of both entities (February 14, 2002). For historical accounting purposes, the historical financial results of Brience have only been combined for the periods during which Syniverse LLC and Brience were under common control of funds
associated with GTCR. Accordingly, our historical consolidated financial statements have been restated to include the financial results of Brience beginning on the date when funds associated with GTCR had common control of both entities (February
14, 2002). For the minority interest of Brience not owned by GTCR affiliates at the time of the combination, purchase accounting has been applied. However, the effects of the fair value adjustments relating to this purchase accounting were deemed to
be insignificant, and therefore, recorded at zero for purposes of these financial statements.



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The accompanying financial statements for the period beginning February 14, 2002 have been restated to
give effect to the combination, accounted for similar to a pooling of interests.



6. Acquisition of Softwright Holdings Limited



On December 19, 2003, we acquired for cash the outstanding stock of Softwright Holdings Limited. Softwright develops licensed software products and services for mobile operators and enterprise customers in Europe. Softwrights product
portfolio focuses on number portability, technical support and hosting services, and other advanced technology solutions. Pursuant to the purchase agreement, we paid consideration equal to $775 in cash including acquisition costs of $156.
Preliminary estimates of the fair value of liabilities assumed in connection with the acquisition totaled approximately $1,268. Total assets, which were recorded at preliminary estimates of fair value, related to the acquisition were approximately
$2,043, including goodwill of approximately $704, customer contracts of $520 and capitalized software of $273. The acquisition was accounted for as a purchase in accordance with Statement of Financial Accounting Standards (SFAS) No. 141,
Business Combinations,and is included in our results of operations from the date of the acquisition.



Under the terms of the acquisition agreement, we agreed to make an additional payment not to exceed 2.0 million British pounds to the former owners of the
acquired company no later than March 31, 2005 if this operation achieves a certain pre-determined profitability as measured by EBITDA (earnings before interest, taxes, depreciation and amortization). No amounts have been accrued for this additional
earn-out as, of December 31, 2003.



7. Concentration of Business



Financial instruments that subject us to concentrations
of credit risk are limited to our trade receivables from major customers. We generated revenues from services provided to Verizon and its predecessors of $122,397, $15,838, $87,989, and $62,866 for the year ended December 31, 2001, the period from
January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002, and the year ended December 31, 2003, respectively. No other customer represented more than 10% of revenues in the year ended December 31, 2001, the
periods from January 1, 2002 to February 13, 2002, and February 14, 2002 to December 31, 2002, and the year ended December 31, 2003, although a significant amount of our remaining revenues was generated from services provided to a small number of
other wireless providers.



8. Fair Value of Financial Instruments



Cash, receivables, accounts payable and revolving line of
credit are reflected in the financial statements at their carrying value, which approximate their fair value due to the short maturity.



Available-for-sale securities are carried at fair value based on quoted market prices and are included in other current assets in the accompanying
consolidated balance sheets. The cost of each equity security is determined primarily on a specific identification method. Unrealized holding gains and losses are reflected, net of income tax, as a separate component of accumulated other
comprehensive income (loss). At December 31, 2003 and 2002, available-for-sale securities had a fair value of $426 and $0, respectively. Because the cost of these securities had previously been written off due to other-than temporary declines in
value, the fair value of these securities reflects unrealized holding gains of $426 at December 31, 2003.



The estimated fair values of our Term Note B and Subordinated Notes are based on prices prevailing in the market.



The carrying amounts and fair values of our long-term debt as of December 31,
2002 and 2003 are as follows:



|                   |  |                   |         |                   |   |               |  |            |         |  |   |        
|------------------ |  | ----------------- | ------- | ----------------- | - | ------------- |  | ---------- | ------- |  | - | -------
|                   |  | December 31, 2002 |         | December 31, 2003
|                   |  | CarryingValue     |         | Fair Value        |   | CarryingValue |  | Fair Value
|Term Note B        |  | $                 | 264,343 |                   | $ | 258,850       |  | $          | 208,338 |  | $ | 216,005
|Subordinated Notes |  |                   | 240,257 |                   |   | 218,050       |  |            | 241,037 |  |   | 268,581



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9. Property and Equipment



Property and equipment, net consist of the following:



|                                          |  |                  |         |   |                  |   |         |  
|----------------------------------------- |  | ---------------- | ------- | - | ---------------- | - | ------- | -
|                                          |  | December 31,2002 |         |   | December 31,2003 |  
|Equipment                                 |  | $                | 42,042  |   |                  | $ | 49,700  |  
|Furniture and fixtures                    |  |                  | 1,630   |   |                  |   | 2,314   |  
|Leasehold improvements                    |  |                  | 1,707   |   |                  |   | 1,699   |  
|                                          |  |                  |         |   |                  |   |         |  
|                                          |  |                  | 45,379  |   |                  |   | 53,713  |  
|Accumulated depreciation and amortization |  |                  | (11,651 | ) |                  |   | (20,165 | )
|                                          |  |                  |         |   |                  |   |         |  
|Total                                     |  | $                | 33,728  |   |                  | $ | 33,548  |  
|                                          |  |                  |         |   |                  |   |         |  



Depreciation expense
related to property and equipment was $8,017, $940, $10,201 and $11,049 for the year ended December 31, 2001, the period from January 1, 2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002, and the year ended December
31, 2003, respectively.



10. Capitalized Software



Capitalized software development costs, net consist of the following:



|                                          |  |                  |        |   |                  |   |         |  
|----------------------------------------- |  | ---------------- | ------ | - | ---------------- | - | ------- | -
|                                          |  | December 31,2002 |        |   | December 31,2003 |  
|Software                                  |  | $                | 83,712 |   |                  | $ | 87,958  |  
|Accumulated depreciation and amortization |  |                  | (9,798 | ) |                  |   | (20,305 | )
|                                          |  |                  |        |   |                  |   |         |  
|Total                                     |  | $                | 73,914 |   |                  | $ | 67,653  |  
|                                          |  |                  |        |   |                  |   |         |  



We recognized
impairment charges of $2.7 million in 2003 primarily related to the discontinuation of prepaid wireless services. The carrying value was determined by discounted cash flow analysis. These impairment charges are classified in the caption
Impairment losses on intangible assets in the consolidated statement of operations.



Amortization expense related to capitalized software was $7,186, $524, $9,801 and $11,007 for the year ended December 31, 2001, the period from January 1,
2002 to February 13, 2002, the period from February 14, 2002 to December 31, 2002, and the year ended December 31, 2003, respectively.



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11. Identifiable Intangible Assets



Identifiable intangible assets consist of the following:



|                                   |  |                  |         |   |                  |   |         |  
|---------------------------------- |  | ---------------- | ------- | - | ---------------- | - | ------- | -
|                                   |  | December 31,2002 |         |   | December 31,2003 |  
|Indefinite lived intangible assets |  |                  |         |   |                  |   |         |  
|Trademark                          |  | $                | 51,700  |   |                  | $ | 685     |  
|Definite lived intangible assets   |  |                  |         |   |                  |   |         |  
|Customer contracts                 |  |                  | 17,400  |   |                  |   | 17,920  |  
|Less accumulated amortization      |  |                  | (3,806  | ) |                  |   | (8,215  | )
|                                   |  |                  |         |   |                  |   |         |  
|Customer contract, net             |  |                  | 13,594  |   |                  |   | 9,705   |  
|                                   |  |                 
|Customer base                      |  |                  | 216,600 |   |                  |   | 216,600 |  
|Less accumulated amortization      |  |                  | (9,476  | ) |                  |   | (20,330 | )
|                                   |  |                  |         |   |                  |   |         |  
|Customer base, net                 |  |                  | 207,124 |   |                  |   | 196,270 |  
|                                   |  |                  |         |   |                  |   |         |  
|Total intangibles                  |  | $                | 272,418 |   |                  | $ | 206,660 |  
|                                   |  |                  |         |   |                  |   |         |  



On March 1, 2004, we
announced the re-naming and re-branding of our company as Syniverse Technologies, Inc. Our new name will enable us to establish a stronger brand and identity in the marketplace. As a result, we recognized an impairment loss of $51,015 related to the
TSI Telecommunication Services Inc. trademark. The carrying value of the remaining trademark intangible was determined by discounted cash flow analysis. The remaining intangible of $685 will be amortized in the first quarter of 2004. The impairment
charge is classified in the caption Impairment losses on intangible assets in the consolidated statement of operations.



Definite lived intangible assets are amortized over their useful lives, which are 4 years for the Verizon contract and 20 years for customer base.
Amortization expense related to identifiable intangibles was $13,282 and $15,263 for the period from February 14, 2002 to December 31, 2002 and for the year ended December 31, 2003, respectively. Expected amortization expenses for each of the next
five years are the following: 2004$15,366, 2005$15,366, 2006$11,325, 2007$10,958, and 2008$10,958.



12. Leasing Arrangements



We lease certain facilities, equipment and an aircraft for use in our operations, all of which are operating leases. Total rent expense under operating
leases amounted to $3,087 in 2001, $394 for the period January 1, 2002 to February 13, 2002, $5,763 for the period February 14, 2002 to December 31, 2002, and $5,809 in 2003. These leases contain various renewal options that could extend the terms
of the leases beyond 2009.



Effective March 1, 2002, we entered
into an operating lease for the use of an executive aircraft. The lease is for seven years, ending March 1, 2009, and requires monthly payments plus actual expenses for maintenance, fuel and other usage related charges. We have an option to purchase
the aircraft 36 months after the commencement date of the lease at a price of $6,650. Our CEO and one of his affiliates is entitled to use the aircraft and an affiliate entity owned by the CEO will pay 25% of the monthly lease and other fixed costs
for the aircraft and will reimburse us for all operating costs of the aircraft in connection with such use. Effective January 1, 2003, our CEO is required to pay for the actual use of the aircraft related to the affiliate entity. As of December 31,
2002 and 2003, $274 and $159, respectively, was owed to us under this arrangement. These amounts have been paid. Amounts incurred, net of the estimated amount due from our CEO, are included in rent expense above.



As of December 31, 2003, the aggregate future minimum lease commitments under
all of these leases are as follows:



|                             |  |   |       
|---------------------------- |  | - | ------
|Year ended December 31, 2004 |  | $ | 5,722 
|Year ended December 31, 2005 |  |   | 5,425 
|Year ended December 31, 2006 |  |   | 4,771 
|Year ended December 31, 2007 |  |   | 1,516 
|Year ended December 31, 2008 |  |   | 1,052 
|Thereafter                   |  |   | 262   
|                             |  |   |       
|                             |  | $ | 18,748
|                             |  |   |       



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13. Debt



As a part of the financing of the acquisition described in Note 4 above, Syniverse entered into various debt agreements all of which are guaranteed by
Syniverse LLC, Syniverse Inc., Syniverse Finance and Syniverse Networks. The following are the amounts outstanding at December 31, 2002 and 2003:



|                                                                                                                                                                                                                   |  |                  |         |   |                  |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------- | ------- | - | ---------------- | - | ------- | -
|                                                                                                                                                                                                                   |  | December 31,2002 |         |   | December 31,2003 |  
|Term note due December 2006, interest payable quarterly, principal payable quarterly beginning September 2002 - net of discount of $13,990 and
$7,937, respectively (a)                                            |  |                  | 264,343 |   |                  |   | 208,338 |  
|$245,000 Senior Notes due February 2009, bearing interest at 12.75%, interest payable semi-annully beginning August 2002, principal payable
upon maturity - net of discount of $4,743 and $3,963, respectively (b) |  |                  | 240,257 |   |                  |   | 241,037 |  
|                                                                                                                                                                                                                   |  |                  |         |   |                  |   |         |  
|Total                                                                                                                                                                                                              |  |                  | 504,600 |   |                  |   | 449,375 |  
|Less current portion                                                                                                                                                                                               |  |                  | (52,736 | ) |                  |   | (33,589 | )
|                                                                                                                                                                                                                   |  |                  |         |   |                  |   |         |  
|Long-term debt                                                                                                                                                                                                     |  | $                | 451,864 |   |                  | $ | 415,786 |  
|                                                                                                                                                                                                                   |  |                  |         |   |                  |   |         |  

---

|(a) | The senior credit facility provides for aggregate borrowings by Syniverse of up to $328,333 maturing December 2006 (with net proceeds to us on February 14, 2002 of up to $310,000)
as follows:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a revolving credit facility of up to $35,000 in revolving credit loans and letters of credit; available for general corporate purposes including working capital, capital
expenditures and acquisitions (funding for acquisitions from the revolving credit facility is limited to an aggregate amount of $15,000. The outstanding balance of the revolving line of credit is $0 as of December 31, 2002 and 2003; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a term loan B facility of $293,333 in term loans. Principal outstanding as of December 31, 2003 and 2002 was $216,275 and $278,333, respectively.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------



The revolving line of credit and the term note each bear interest at variable
rates, at Syniverses option:



| |  | a base rate generally defined as the sum of (i) the higher of (x) the prime rate (as quoted on the British Banking Association Telerate Page 5) and (y) the federal fund effective
rate, plus one half percent (0.50%) per annum) and (ii) an applicable margin (initially 3.50%); or
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a LIBOR rate generally defined as the sum of (i) the rate at which eurodollar deposits for one, two, three or six months and, if available to the lenders under the applicable credit
facility, nine or twelve months (as selected by Syniverse) are offered in the interbank eurodollar market and (ii) an applicable margin (initially 4.50%).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In March 2003, we entered into an interest rate protection agreement that effectively caps the LIBOR exposure of $100 million of our senior credit facility at 3.0% for a period of
two years. As a result of this interest rate protection agreement, approximately 75% of funded debt now bears interest that is effectively fixed as to rate.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The term loan B facilities are subject to equal quarterly installments of principal as set forth in the table below:



|      |  |             |        
|----- |  | ----------- | -------
|Year  |  | Term Loan B
|2004  |  | $           | 37,222 
|2005  |  |             | 44,026 
|2006  |  |             | 135,027
|      |  |             |        
|Total |  | $           | 216,275
|      |  |             |        



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Voluntary prepayments of principal outstanding under the revolving loans are permitted at any time
without premium or penalty, upon the giving of proper notice. In addition, Syniverse is required to prepay amounts outstanding under the senior credit facility in an amount equal to:



| |  | 100% of the net cash proceeds from any sale or issuance of equity by Syniverse LLC or any of its direct or indirect subsidiaries, subject to certain baskets and exceptions;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 100% of the net cash proceeds from any incurrence of additional indebtedness (excluding certain permitted debt);
| | - | ----------------------------------------------------------------------------------------------------------------



| |  | 100% of the net cash proceeds from any sale or other disposition by Syniverse LLC, or any of its direct or indirect subsidiaries of any assets, subject to certain reinvestment
provisions and excluding certain dispositions in the ordinary course; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 100% of excess cash flow prior to March 11, 2004 and 75% thereafter, as defined, for each fiscal year. At December 31, 2002 and 2003, we have classified $37,725 and $2,979,
respectively, as current representing the excess cash flow prepayment required, as described above.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, any prepayment of the term loan B facility (other than from excess cash flow) shall be accompanied by a prepayment premium equal to 2.00% of
the principal amount of such prepayment (if such prepayment is made on or prior to the first anniversary of the closing date) and 1.00% of the principal amount of such prepayment (if such prepayment is made after the first anniversary of the closing
date and through the second anniversary of the closing date).



Syniverse is required to pay a commitment fee on the difference between committed amounts and amounts actually utilized under the revolving credit facility, which is 0.50% per annum. We incurred $149 and $178 in commitment fees in the
period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, respectively.



Under the terms of the senior credit facility at least 45% of our funded debt must bear interest that is effectively fixed. To that extent, we may be
required to enter into interest rate protection agreements establishing a fixed maximum interest rate with respect to a portion of our total indebtedness. As of December 31, 2002 and 2003, we were not required to enter into interest rate protection
agreements.



The loans and other obligations under the senior
credit facility are guaranteed by Syniverse LLC, Syniverse Inc., and each of Syniverse LLCs direct and indirect subsidiaries (other than certain foreign subsidiaries).



Our obligations under the senior credit facility and the guarantees are secured by:



| |  | a perfected first priority security interest in all of our tangible and intangible assets and all of the tangible and intangible assets of Syniverse LLC and each of its direct and
indirect subsidiaries, subject to certain customary exceptions, and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | a pledge of (i) all of the capital stock of Syniverse Inc. owned by Syniverse LLC, all of our capital stock and that of any of Syniverse LLCs direct and indirect domestic
subsidiaries and (ii) two-thirds of the capital stock of certain first-tier foreign subsidiaries, if any.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On September 25, 2003, we entered into the First Amendment to Credit Agreement (the First Amendment) with our lenders (Term Note B and
Revolving Credit) signatory thereto and Lehman Commercial Paper Inc., as administrative agent for the lenders (the Agent). The First Amendment amends our senior credit facility covenants by (i) increasing the maximum consolidated
leverage and consolidated senior debt ratios, (ii) reducing the minimum consolidated interest coverage ratios beginning with the third and fourth fiscal quarters of 2003 and the four fiscal quarters of 2004, 2005 and beyond and (iii) reducing the
minimum consolidated fixed charge coverage ratio. In addition, the First Amendment increases the permitted level of capital expenditures for fiscal years 2004 and 2005. The First Amendment also evidences the agreement of the lenders that,
notwithstanding any contrary accounting treatment under GAAP necessitated by the acquisition of Brience on July 23, 2003, the consolidated net income and consolidated EBITDA of Brience prior to July 23, 2003 will be excluded from any determination
of consolidated net income or consolidated EBITDA of Syniverse LLC and its subsidiaries for purposes of our senior credit facility.



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On March 11, 2004, we entered into the Second Amendment (the Second Amendment) with our
lenders (Term Loan B and Revolving Credit) signatory thereto and Lehman Commercial Paper Inc., as administrative agent for the lenders (the Agent). The Second Amendment amends our senior credit facility by (i) providing for the
incurrence under our senior credit facility of new Additional Tranche B Term Loans, which will refinance, in full, all remaining outstanding Tranche B Term Loans and (ii) reduces the percentage of Excess Cash Flow which must be applied to
prepay the loans to 75%. The Applicable Margin with respect to Additional Tranche B Term Loans is 2.5% for Base Rate Loans and 3.5% for Eurodollar Loans.



|(b) | The Subordinated Notes are general unsecured obligations of Syniverse, and are unconditionally guaranteed by Syniverse Inc. and Syniverse LLC, and each of the domestic subsidiaries
of Syniverse. At any time prior to February 1, 2005, Syniverse may on any one or more occasions redeem up to 35% of the aggregate principal amount of notes issued under the indenture (including additional notes, if any) at a redemption price of
112.75% of the principal amount, plus accrued and unpaid interest and liquidated damages, if any, to the redemption date, with the net cash proceeds of one or more equity offerings by Syniverse or a contribution to Syniverses common equity
capital made with the net cash proceeds of a concurrent equity offering by Syniverse Inc. or Syniverse LLC (but excluding any Excluded Capital Contribution, as defined, and any Reserved Contribution, as defined) provided that:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | At least 65% of the aggregate principal amount of notes issued under the indenture (including additional notes, if any) remains outstanding immediately after the occurrence of such
redemption; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The redemption occurs within 60 days of the date of the closing of such equity offering.
| | - | ----------------------------------------------------------------------------------------



Except pursuant to the preceding paragraph, the notes will not be redeemable at Syniverses option prior to February 1,
2006. After February 1, 2006, Syniverse may redeem all or a part of the notes upon not less than 30 nor more than 60 days notice, at the redemption prices (expressed as percentages of principal amount), set forth below plus accrued and unpaid
interest and liquidated damages, if any, on the notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on February 1 of the years indicated below:



|     |  |            |  
|---- |  | ---------- | -
|Year |  | Percentage |  
|2006 |  | 106.375    | %
|2007 |  | 103.188    | %
|2008 |  | 100.000    | %



Syniverse is not
required to make mandatory redemption or sinking fund payments with respect to the notes.



The notes contain various other provisions in the event of a change in control or asset sales, and they also contain certain covenants related to dividend payments, equity repurchases, debt repurchases, restrictions
on investments, incurrence of indebtedness, issuance of preferred stock, sale and leaseback transactions, and require the maintenance of certain financial conditions related to leverage ratios.



14. Derivatives



The portion of the interest rate associated with our term loan B that is based on the three month LIBOR rate is subject to
variability. To protect against interest rate risk, we acquired an interest rate cap agreement during the year ended December 31, 2003. The cap has a term of two years, a notional amount of $100,000 and provides an interest rate cap of 3%. We paid a
premium of $390 to obtain the cap and any amounts due to us as a result of LIBOR exceeding the strike rate are to be paid quarterly. As of December 31, 2003, the fair value of the cap was $34, and this is reflected as an asset within other current
assets in the accompanying consolidated balance sheet. The decline in fair value associated with the cap has been recorded as interest expense in the income statement for the period ended December 31, 2003.



15. Unitholders Interests



The Ultimate Parent is organized as a limited liability company under the
laws of Delaware.



The ownership interests in Syniverse LLC
consist of Class A Preferred Units, Class B Preferred Units and Common Units. Holders of the Class A Preferred Units and Class B Preferred Units have no voting rights except as required by law. The holders of the Common Units are entitled to one
vote per unit on all matters to be voted upon by the unitholders of Syniverse LLC.



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The Class A Preferred Units are entitled to a cumulative preferred yield of 10.0% per annum, compounded
quarterly. Class A Preferred Units may be used as consideration for the repurchase by Syniverse LLC of Class B Preferred Units and Common Units held by members of our management team who cease to be employed by Syniverse LLC, Syniverse Inc. or their
respective subsidiaries. At December 31, 2002 and 2003, no Class A Preferred Units were outstanding.



The Class B Preferred Units are entitled to an annual cumulative preferred yield of 10.0%, compounded quarterly. At December 31, 2002 and 2003, there were
252,367.50 of Class B Preferred Units outstanding. For the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, undeclared and unpaid preferred dividends totaled $22,952 and $51,535, respectively. These amounts
are not recorded as liabilities until declared.



The Common
Units represent the common equity of Syniverse LLC. At December 31, 2002 and 2003, there were 88,828,859 and 90,505,405 Common Units outstanding, respectively.



Pursuant to the limited liability company agreement, distributions of property of Syniverse LLC shall be made in the following order:



| |  | First, holders of Class A Preferred Units, if any, will receive a preferred yield on their invested capital of 10% per annum, compounded quarterly;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Second, holders of Class A Preferred Units, if any, will receive a return of their invested capital;
| | - | ----------------------------------------------------------------------------------------------------



| |  | Third, holders of Class B Preferred Units will receive a preferred yield on their invested capital of 10% per annum, compounded quarterly;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------



| |  | Fourth, holders of Class B Preferred Units will receive a return of their invested capital; and
| | - | -----------------------------------------------------------------------------------------------



| |  | Thereafter, holders of the Common Units will receive all remaining distributions.
| | - | ---------------------------------------------------------------------------------



Under the purchase agreements entered into in connection with the acquisition, the GTCR investors and certain co-investors
acquired a strip of Class B Preferred Units and Common Units and committed to purchase up to an additional $25,000 of equity securities of Syniverse LLC. The investment of the additional $25,000 is conditioned upon the GTCR investors and the board
of managers of Syniverse LLC approving the terms of the investment and the proposed use of the proceeds from the investment, as well as the satisfaction of certain other conditions.



16. Redeemable Preferred Stock of Brience



The following is a summary of Briences series of redeemable preferred stock and the amounts authorized and outstanding as of December 31, 2002.
All series were canceled as part of Syniverses acquisition of Brience, described in Note 5.



|                                                                                                                                                        |  |                   |    
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ---
|Description                                                                                                                                             |  | December 31, 2002
|Series A redeemable preferred stock-$.01 par value, 8,663,355 shares authorized and 7,463,355 issued and outstanding; liquidation preference
of $50,000 |  | $                 | 75 
|Series A-1 redeemable preferred stock-$.01 par value, 676,791 shares authorized and 676,791 issued and outstanding; liquidation preference of
$4,029    |  |                   | 7  
|Series B redeemable preferred stock-$.01 par value, 1,545,414 shares authorized and 1,545,413 issued and outstanding; liquidation preference
of $9,200  |  |                   | 15 
|Series B-1 redeemable preferred stock-$.01 par value, 870,969 shares authorized and 840,192 issued and outstanding; liquidation preference of
$5,629    |  |                   | 8  
|Series C redeemable preferred stock-$.01 par value, 2,700,000 shares authorized and 1,447,205 issued and outstanding; liquidation preference
of $9,695  |  |                   | 14 
|                                                                                                                                                        |  |                   |    
|Total                                                                                                                                                   |  | $                 | 119
|                                                                                                                                                        |  |                   |    



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Each holder of outstanding preferred stock was entitled to receive each fiscal year, when, as and if
declared by the Board of Directors, out of any assets at the time legally available therefor, a dividend at the rate of 6% per annum on the aggregate liquidation value thereof. Such dividends were payable only when, as and if declared by the Board
of Directors and were noncumulative. No dividends were ever declared by the Brience Board of Directors.



In the event that that Brience declared or paid any dividends upon the common stock (whether payable in cash, securities or other property) other than
dividends payable solely in shares of common stock, Brience was required to also declare and pay to the holders of the preferred stock at the same time that it declared and paid such dividends to the holders of the common stock, the dividends which
would have been declared and paid with respect to its common stock issuable upon conversion of the preferred stock had all of the outstanding preferred stock been converted immediately prior to the record date for such dividend, or if no record date
was fixed, the date as of which the record holders of common stock entitled to such dividends were to be determined.



Upon any liquidation, dissolution or winding up of Brience (whether voluntary or involuntary), each holder of preferred stock was to be paid in the
following order:



| |  | First, holders of Series C Preferred Stock were to receive an amount in cash equal to the aggregate liquidation value of all shares of Series C Preferred Stock held by such holders,
plus all declared and unpaid dividends thereon;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Second, holders of Series B Preferred Stock and Series B-1 Preferred Stock were to receive an amount in cash equal to the aggregate liquidation value of all shares of Series B
Preferred Stock and Series B-1 Preferred Stock held by such holders, plus all declared and unpaid dividends thereon;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Third, holders of Series A Preferred Stock and Series A-1 Preferred Stock were to receive an amount in cash equal to the aggregate liquidation value of all shares of Series A
Preferred Stock and Series A-1 Preferred Stock held by such holders, plus all declared and unpaid dividends thereon; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Thereafter, all of the remaining assets of Brience available for distribution to stockholders were to be distributed among the holders of preferred stock and common stock pro rata
based on the number of shares of common stock held by each (assuming full conversion of all such shares of preferred stock).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The holders of preferred stock were entitled to vote on all matters submitted to the stockholders for a vote together with the holders of the common stock
voting together as a single class with each share of common stock entitled to one vote per share and each share of preferred stock entitled to one vote for each share of common stock issuable upon conversion of such share of preferred stock at the
time the vote was taken.



At any time after January 1, 2007,
the holders of a majority of the outstanding preferred stock (voting together as a single class) could have requested redemption of all of the outstanding shares of preferred stock by delivering written notice of such request to Brience. For each
share of preferred stock which was to be redeemed, Brience would have been obligated on each redemption date to pay to the holder an amount in immediately available funds equal to the liquidation value of such share (plus all declared and unpaid
dividends).



At any time, holders of preferred stock could have
converted all or any portion of their preferred stock into a number of shares of Brience common stock computed by multiplying the number of shares to be converted by $6.6994 for Series A, B-1 and C Preferred Stock, and $5.9531 for Series A-1, and B
Preferred Stock, and dividing the result by the conversion price then in effect.



17. Stock Options



Syniverse Inc.
(Successor)



On May 16, 2002, Syniverse Inc.s Board
of Directors adopted a Founders Stock Option Plan for non-employee directors, executives and other key employees of Syniverse Inc. In addition, the Board of Directors adopted a Directors Stock Option Plan on August 2, 2002, which
provides for grants to independent directors to purchase 50,000 shares upon election to the board. The plans have a term of five years and provide for the granting of options to purchase shares of Syniverse Inc.s non-voting common stock.



Under the plans, the options have or will have an initial
exercise price based on the fair value of each share, as determined by



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the Board. The per share exercise price of each stock option is not less than the fair market value of the stock on the
date of the grant or, in the case of an equity holder owning more than 10% of the outstanding stock of Syniverse Inc., the price for incentive stock options is not less than 110% of such fair market value. The Board of Syniverse Inc. reserved
1,000,000 shares of non-voting common stock, par value $.001 per share for issuance under the Founders plan and 300,000 shares under the Directors plan. As of December 31, 2003, there were options to purchase 293,750 shares outstanding
under the Founders Stock Option Plan and options to purchase 100,000 shares outstanding under the Directors Stock Option Plan.



All options to be issued under the plans shall be presumed to be nonqualified stock options unless otherwise indicated in the option agreement. Each
option will have exercisable life of no more than 10 years from the date of grant for both nonqualified and incentive stock options in the case of grants under the Founders Stock Option Plan and under the Directors Stock Option Plan.
Vesting will vary by grant and will be indicated in the option agreement.



The following table summarizes the transactions for the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003 relating to the combined Founders Option Plan and Non-Employee
Directors Plan:



|                                 |  |                                   |   |  |                         |     
|-------------------------------- |  | --------------------------------- | - |  | ----------------------- | ----
|                                 |  | Number of SharesSubject to Option |   |  | Per ShareExercise Price
|Outstanding, February 14, 2002   |  |                                  |   |  |                         |     
|Granted                          |  | 371,300                           |   |  | $                       | 5.00
|Exercised                        |  |                                  |   |  |                         |     
|Canceled/Forfeited               |  | (26,600                           | ) |  |                         | 5.00
|                                 |  |                                   |   |  |                         |     
|                                 |  |                                  
|Outstanding, December 31, 2002   |  | 344,700                           |   |  |                         | 5.00
|Granted                          |  | 96,300                            |   |  |                         | 5.00
|Exercised                        |  |                                  |   |  |                         |     
|Canceled/Forfeited               |  | (47,250                           | ) |  |                         | 5.00
|                                 |  |                                   |   |  |                         |     
|Outstanding, December 31, 2003   |  | 393,750                           |   |  | $                       | 5.00
|                                 |  |                                   |   |  |                         |     
|Exercisable at December 31, 2003 |  | 87,200                            |   |  | $                       | 5.00
|                                 |  |                                   |   |  |                         |     



No options were
exercisable at December 31, 2002.



The following table
summarizes significant ranges of outstanding and exercisable stock options at December 31, 2003:



|                |  |           |  |                                |  |                               |  |        |      |                               |        |  |   |     
|--------------- |  | --------- |  | ------------------------------ |  | ----------------------------- |  | ------ | ---- | ----------------------------- | ------ |  | - | ----
|Exercise Prices |  | GrantDate |  | Options Outstanding            |  | Options Exercisable          
|                |  | Number    |  | WeightedAverageRemaining Years |  | WeightedAverageExercise Price |  | Number |      | WeightedAverageExercise Price
|$  5.00         |  | 06/01/02  |  | 248,650                        |  | 8.4                           |  | $      | 5.00 |                               | 74,700 |  | $ | 5.00
|5.00            |  | 08/01/02  |  | 50,000                         |  | 8.6                           |  |        | 5.00 |                               | 12,500 |  |   | 5.00
|5.00            |  | 03/12/03  |  | 50,000                         |  | 9.2                           |  |        | 5.00 |                               |       |  |   | 5.00
|5.00            |  | 07/01/03  |  | 31,300                         |  | 9.5                           |  |        | 5.00 |                               |       |  |   | 5.00
|5.00            |  | 10/01/03  |  | 13,800                         |  | 9.8                           |  |        | 5.00 |                               |       |  |   | 5.00
|                |  |           |  |                                |  |                               |  |        |      |                               |        |  |   |     
|                |  |           |  | 393,750                        |  | 8.7                           |  | $      | 5.00 |                               | 87,200 |  | $ | 5.00
|                |  |           |  |                                |  |                               |  |        |      |                               |        |  |   |     



We account for these
plans and related grants thereunder using the intrinsic value method prescribed in APB Opinion No. 25, Accounting for Stock Issued to Employees. However, pro forma information, for disclosure purposes, regarding net income and
earnings per share as required by Statement of Financial Accounting Standards No. 123, Accounting for Stock Based Compensation, (SFAS 123) is determined as if we had accounted for our employee and non-employee director stock
options under the fair value method of SFAS 123.



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Outstanding options as of December 31, 2003 and 2002 had a weighted average remaining contractual life of
8.7 and 9.4 years, respectively. The per share weighted average fair value of options granted during the years ended December 31, 2003, was negligible.



Pro forma information regarding net income and earnings per share is required by SFAS 123, which also requires that the information be determined as if we
had accounted for its employee stock options granted subsequent to December 31, 1994 under the fair value method set forth in SFAS 123. The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model
with the following weighted-average assumptions:



|                                          |  |                  |   |  |                  |  
|----------------------------------------- |  | ---------------- | - |  | ---------------- | -
|                                          |  | December 31,2002 |   |  | December 31,2003 |  
|Risk-free interest rate                   |  | 4.93             | % |  | 4.30             | %
|Volatility factor                         |  |                 |   |  |                 |  
|Dividend yield                            |  |                 |   |  |                 |  
|Weighted average expected life of options |  | 5                |   |  | 5                |  



The Black-Scholes
option valuation model was developed for use in estimating the fair value of traded options which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions
including the expected stock price volatility. Since Syniverse, Inc.s common stock does not trade on public markets, a volatility of 0% was entered into the Black-Scholes option valuation model. Because our stock options have characteristics
significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in managements opinion, the existing models do not necessarily provide a reliable
single measure of the fair value of our employee stock options. Our pro forma amounts are not materially different from the reported net income amounts and hence are not disclosed.



Verizon Stock Incentive Plans (Predecessor)



We participated in Verizons stock-based compensation plans that include a fixed stock option plan. GTE options were
granted separately or in conjunction with stock appreciation rights (SARs). The granting of SARs was discontinued prior to 1999. We have recognized no compensation expense for our fixed stock option plans. If we had elected to recognize compensation
expense based on the fair value at the grant dates for 1998 and subsequent fixed and performance-based plan awards consistent with the provisions of SFAS No. 123, net income would have been changed to the pro forma amounts indicated below:



|            |  |                            |        |                                         |   |      
|----------- |  | -------------------------- | ------ | --------------------------------------- | - | -----
|            |  | Year EndedDecember 31,2001 |        | Period fromJanuary 1 toFebruary 13,2002
|Net income: |  |                            |        |                                         |   |      
|As reported |  | $                          | 69,258 |                                         | $ | 6,917
|Pro forma   |  |                            | 66,150 |                                         |   | 6,621



These results may not
be representative of the effects on net income for future years.



We determined the pro forma amounts using the Black-Scholes option-pricing model based on the following weighted-average assumptions:



|                          |  |                  |   |  |                                         |  
|------------------------- |  | ---------------- | - |  | --------------------------------------- | -
|                          |  | December 31,2001 |   |  | Period fromJanuary 1 toFebruary 13,2002 |  
|Dividend yield            |  | 2.75             | % |  | 2.75                                    | %
|Expected volatility       |  | 29.07            | % |  | 29.07                                   | %
|Risk-free interest rate   |  | 4.80             | % |  | 4.80                                    | %
|Expected lives (in years) |  | 6                |   |  | 5                                       |  



The weighted-average
value per share of options granted during 2001 was $15.20. No options were granted under this plan in the period ended February 13, 2002.



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Stock Options of Brience



Brience adopted the 2000 Stock Plan under which incentive stock options and nonstatutory stock options aggregating 15 million shares may have been
granted to employees, directors and consultants of Brience. The number of authorized shares was reduced to 4 million during 2002. The exercise price was required to be at least 100 percent of the fair market value on the date of grant. Options
generally expired in 10 years. Options were immediately exercisable, but shares so purchased vested over periods determined by the Board of Directors, generally five years. Upon termination of employment, Brience could have repurchased unvested
shares for the original purchase price. Brience had a loan program whereby all employees with options were able to exercise their options with the aid of a company-sponsored full recourse loan. Interest on the loans was due annually and the
principal balance was due approximately two years after the date of the loan. These loans were offered at the applicable prescribed federal rate for the month of the commencement of the loan. No new loans were entered into during the year ended
December 31, 2002 and 2003. At December 31, 2002 and 2003, Brience had $312 and $0, respectively, in notes receivable from employees related to these loans.



The following table summarizes the stock option plan activity.



|                                         |  |                          |   |  |                    |   |  |                               |     
|---------------------------------------- |  | ------------------------ | - |  | ------------------ | - |  | ----------------------------- | ----
|                                         |  | SharesAvailablefor Grant |   |  | OptionsOutstanding |   |  | WeightedAverageExercise Price
|Outstanding, February 14, 2002           |  | 1,508,729                |   |  | 2,491,271          |   |  | $                             | 0.95
|Authorized                               |  |                         |   |  |                   |   |  |                               |    
|Granted                                  |  |                         |   |  |                   |   |  |                               |    
|Exercised                                |  |                         |   |  |                   |   |  |                               |    
|Canceled                                 |  |                         |   |  | (1,269,753         | ) |  |                               | 0.95
|Other                                    |  |                         |   |  |                   |   |  |                               |    
|                                         |  |                          |   |  |                    |   |  |                               |     
|Outstanding, December 31, 2002           |  | 1,508,729                |   |  | 1,221,518          |   |  | $                             | 0.95
|                                         |  |                          |   |  |                    |   |  |                               |     
|Vested and excercisable at end of period |  |                          |   |  | 497,735            |   |  | $                             | 0.95
|                                         |  |                          |   |  |                    |   |  |                               |     
|                                         |  |                          |  
|                                         |  | SharesAvailablefor Grant |   |  | OptionsOutstanding |   |  | WeightedAverageExercise Price
|Outstanding, January 1, 2003             |  | 1,508,729                |   |  | 1,221,518          |   |  | $                             | 0.95
|Authorized                               |  |                         |   |  |                   |   |  |                               |    
|Granted                                  |  |                         |   |  |                   |   |  |                               |    
|Exercised                                |  |                         |   |  |                   |   |  |                               |    
|Canceled                                 |  | (1,508,729               | ) |  | (1,221,518         | ) |  |                               | 0.95
|Other                                    |  |                         |   |  |                   |   |  |                               |    
|                                         |  |                          |   |  |                    |   |  |                               |     
|Outstanding, December 31, 2003           |  |                         |   |  |                   |   |  | $                             |    
|                                         |  |                          |   |  |                    |   |  |                               |     
|Vested and excercisable at end of period |  |                          |   |  |                   |   |  | $                             |    
|                                         |  |                          |   |  |                    |   |  |                               |     



The following table
summarizes the options outstanding at December 31, 2002.



|                         |  |                     |  |                                |  |                               |      |        |         |                               |   |     
|------------------------ |  | ------------------- |  | ------------------------------ |  | ----------------------------- | ---- | ------ | ------- | ----------------------------- | - | ----
|                         |  | Options Outstanding |  | Options Vested and Exercisable
|Range of Exercise Prices |  | Number              |  | WeightedAverageRemaining Years |  | WeightedAverageExercise Price |      | Number |         | WeightedAverageExercise Price
|$0.95                    |  | 1,221,518           |  | 9.13                           |  | $                             | 0.95 |        | 497,735 |                               | $ | 0.95



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No options were outstanding or exercisable at December 31, 2003.



We account for these plans and related grants thereunder using the intrinsic
value method prescribed in APB Opinion No. 25, Accounting for Stock Issued to Employees. However, pro forma information, for disclosure purposes, regarding net income and earnings per share as required by Statement of Financial
Accounting Standards No. 123, Accounting for Stock Based Compensation, (SFAS 123) is determined as if we had accounted for our stock options under the fair value method of SFAS 123.



The per share weighted average fair value of options granted during the year
ended December 31, 2002, was negligible.



Pro forma information
regarding net income and earnings per share is required by SFAS 123, which also requires that the information be determined as if we had accounted for its employee stock options granted subsequent to December 31, 1994 under the fair value method set
forth in SFAS 123. The fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:



|                                          |  |                  |  
|----------------------------------------- |  | ---------------- | -
|                                          |  | December 31,2002 |  
|Risk-free interest rate                   |  | 5.00             | %
|Volatility factor                         |  | 1                |  
|Dividend yield                            |  |                 |  
|Weighted average expected life of options |  | 10               |  



The Black-Scholes
option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions
including the expected stock price volatility. Since Briences common stock did not trade on public markets, a volatility of 1.0% was entered into the Black-Scholes option valuation model. Because our stock options have characteristics
significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in managements opinion, the existing models do not necessarily provide a reliable
single measure of the fair value of our employee stock options. Our pro forma amounts are not materially different from the reported net income amounts and hence are not disclosed.



18. Restructurings



As a part of the Syniverse acquisition in February 2002, we developed a restructuring plan to react to competitive pressures and to increase operational
efficiency. The plan included the termination of approximately 78 employees in Tampa and Dallas, or 6% of our workforce and the closure of the Dallas office. As a result, we accrued $3,333 of expenses in relation to this plan as of February 14, 2002
including $2,948 for severance related to the reduction in workforce and $385 for costs to relocate employees added as a part of the restructuring. All charges were recognized in purchase accounting.



On August 29, 2002, we completed a restructuring plan resulting in the
termination of 73 employees or approximately 10% of our workforce. As a result, we accrued $2,845 in severance related costs in August. The payments related to this restructuring were completed in May 2003.



On February 28, 2003, we completed a restructuring plan resulting in the
termination of 71 employees or approximately 10.6% of our workforce. As a result, we accrued $1,841 in severance related costs in February 2003. The payments related to this restructuring were completed in November 2003. We expect this
reorganization to result in reduced annual expenses of approximately $5,838.



On July 23, 2003, we completed a restructuring plan in connection with our acquisition of Brience resulting in the termination of 5 employees. As a result, we incurred $607 in severance related costs in July 2003. The
payments related to this restructuring were incurred through September 2003. We expect this reorganization to result in reduced annual expenses of approximately $800. Further restructuring may be necessary in light of current economic conditions.



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For the year ended December 31, 2002, we had the following activity in our restructuring accruals:



|                                              |  |                      |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |      
|--------------------------------------------- |  | -------------------- | ----- | --------- | - | -------- |  | - | ---------- | - |  | ------------------------- | ---- | - |  | - | -----
|                                              |  | Feb 14, 2002 Balance |       | Additions |   | Payments |  |   | Reductions |   |  | December 31, 2002 Balance
|February 2002 Restructuring Termination costs |  | $                    | 3,333 |           | $ |         |  | $ | (2,200     | ) |  | $                         | (666 | ) |  | $ | 467  
|August 2002 Restructuring Termination costs   |  |                      |      |           |   | 2,845    |  |   | (1,701     | ) |  |                           |     |   |  |   | 1,144
|                                              |  |                      |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |      
|Total                                         |  | $                    | 3,333 |           | $ | 2,845    |  | $ | (3,901     | ) |  | $                         | (666 | ) |  | $ | 1,611
|                                              |  |                      |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |      



For the year ended
December 31, 2003, we had the following activity in our restructuring accruals:



|                                                  |  |                        |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |  
|------------------------------------------------- |  | ---------------------- | ----- | --------- | - | -------- |  | - | ---------- | - |  | ------------------------- | ---- | - |  | - | -
|                                                  |  | January 1, 2003Balance |       | Additions |   | Payments |  |   | Reductions |   |  | December 31, 2003 Balance
|February 2002 Restructuring Termination costs     |  | $                      | 467   |           | $ |         |  | $ | (372       | ) |  | $                         | (95  | ) |  | $ | 
|August 2002 Restructuring Termination costs       |  |                        | 1,144 |           |   |         |  |   | (1,007     | ) |  |                           | (137 | ) |  |   | 
|February 2003 Restructuring Termination costs     |  |                        |      |           |   | 1,841    |  |   | (1,789     | ) |  |                           | (52  | ) |  |   | 
|July 2003 Brience Restructuring Termination costs |  |                        |      |           |   | 607      |  |   | (607       | ) |  |                           |     |   |  |   | 
|                                                  |  |                        |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |  
|Total                                             |  | $                      | 1,611 |           | $ | 2,448    |  | $ | (3,775     | ) |  | $                         | (284 | ) |  | $ | 
|                                                  |  |                        |       |           |   |          |  |   |            |   |  |                           |      |   |  |   |  



19. Employee Benefits



Savings Plans (Successor)



During the period from February 14, 2002 to December 31, 2002, we adopted a
401(k) plan covering all employees subject to certain eligibility requirements. Under this plan, a certain percentage of eligible employee contributions are matched. We incurred total savings plan costs of $2,045 and $1,998 in the period from
February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, respectively.



Savings Plans (Brience)



For the period from February 14, 2002 to December 31, 2002 and the period from January 1, 2003 to July 23, 2003, Brience had a 401(k) plan available to all employees. Employees were eligible to participate in the 401(k) at any time
beginning with their first day of employment. Each participant could elect to contribute an amount up to 15 percent of his or her annual base salary plus commissions and bonuses, but not to exceed the statutory limit as prescribed by the Internal
Revenue Code. While Brience was allowed to make discretionary contributions to the 401(k), no discretionary contributions to the 401(k) were made by Brience. This plan was discontinued after July 23, 2003, the date of the merger.



Employee Benefits (Predecessor)



We participated in the Verizon benefit plans for the period ending December
31, 2001, and the period from January 1, 2002 to February 13, 2002. Verizon maintains noncontributory defined benefit pension plans for substantially all employees. The postretirement healthcare and life insurance plans for our retirees and their
dependents are both contributory and noncontributory and include a limit on our share of cost for recent and future retirees. Verizon also sponsors a defined contribution savings plans in which we participated to provide opportunities for our
eligible employees to save for retirement on a tax-deferred basis and to encourage employees to acquire and maintain an equity interest in Verizon.



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The structure of Verizons benefit plans does not provide for the separate determination of certain
disclosures for us. The required information is provided on a consolidated basis in Verizons Annual Report on Form 10-K for the year ended December 31, 2002.



Pension and Other Postretirement Benefits (Predecessor)



Verizon may periodically amend the benefits in our pension and other
postretirement benefit plans.



Benefit Cost



Amounts reported in the Consolidated Statements of Operations consist of:



|                          |  |                            |       |                                         |   |                            |  |                                         |     |  |   |    
|------------------------- |  | -------------------------- | ----- | --------------------------------------- | - | -------------------------- |  | --------------------------------------- | --- |  | - | ---
|                          |  | Predecessor                |       | Predecessor                            
|                          |  | Pension                    |       | Healthcare and Life                    
|                          |  | Year EndedDecember 31,2001 |       | Period fromJanuary 1 toFebruary 13,2002 |   | Year EndedDecember 31,2001 |  | Period fromJanuary 1 toFebruary 13,2002
|Net periodic benefit cost |  | $                          | 3,161 |                                         | $ | 430                        |  | $                                       | 700 |  | $ | 129



There are no amounts
recognized on the consolidated balance sheets.



The changes in
benefit obligations from year to year were caused by a number of factors, including changes in actuarial assumptions (see Assumptions below) and plan amendments.



Assumptions



The actuarial assumptions used are based on market interest rates, past experience, and managements best estimate of future economic conditions.
Changes in these assumptions may impact future benefit costs and obligations. The weighted-average assumptions used in determining expense and benefit obligations are as follows:



|                                                        |  |                            |   |  |                                         |   |  |                            |   |  |                                         |  
|------------------------------------------------------- |  | -------------------------- | - |  | --------------------------------------- | - |  | -------------------------- | - |  | --------------------------------------- | -
|                                                        |  | Predecessor                |   |  | Predecessor                             |  
|                                                        |  | Pension                    |   |  | Healthcare and Life                     |  
|                                                        |  | Year EndedDecember 31,2001 |   |  | Period fromJanuary 1 toFebruary 13,2002 |   |  | Year EndedDecember 31,2001 |   |  | Period fromJanuary 1 toFebruary 13,2002 |  
|Discount rate at end of year                            |  | 7.25                       | % |  | 7.25                                    | % |  | 7.25                       | % |  | 7.25                                    | %
|Long-term rate of return on plan assets for the year    |  | 9.25                       |   |  | 9.25                                    |   |  | 9.10                       |   |  | 9.10                                    |  
|Rate of future increases in compensation at end of year |  | 5.00                       |   |  | 5.00                                    |   |  | 4.00                       |   |  | 4.00                                    |  
|Medical cost trend rate at end of year                  |  |                            |   |  |                                         |   |  | 10.00                      |   |  | 10.00                                   |  
|Ultimate                                                |  |                            |   |  |                                         |   |  | 5.00                       |   |  | 5.00                                    |  



Savings Plans and Employee Stock
Ownership Plans (Predecessor)



For the period ending
December 31, 2001, and the period from January 1, 2002 to February 13, 2002, substantially all of our employees were eligible to participate in savings plans maintained by Verizon. Verizon maintains a leveraged employee stock ownership plan (ESOP)
for its management employees of the former GTE Companies. Under this plan, a certain percentage of eligible employee contributions are matched with shares of Verizon common stock. Verizon recognizes leveraged ESOP cost based on the modified shares
allocated method for this leveraged ESOP that held shares before December 31, 1989. We recognize savings plan costs based on our matching obligation attributed to our participating management employees. We recorded total savings plan costs of $1,834
in 2001, and $299 in the period from January 1, 2002 to February 13, 2002.



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20. Income Taxes



The components of income tax expense (benefit) are as follows:



|                           |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|-------------------------- |  | -------------------------- | ------ | - | --------------------------------------- | - | ----- | ----------------------------------------- |  | -------------------------- | ----- |  | - | ------ | -
|                           |  | Predecessor                |        |   | Successor                               |  
|                           |  | Year EndedDecember 31,2001 |        |   | Period fromJanuary 1 toFebruary 13,2002 |   |       | Period fromFebruary 14 toDecember 31,2002 |  | Year EndedDecember 31,2003 |      
|Current:                   |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|Federal                    |  | $                          | 41,055 |   |                                         | $ | 4,221 |                                           |  | $                          | 120   |  | $ | (127   | )
|Foreign                    |  |                            | 19     |   |                                         |   | 4     |                                           |  |                            | 21    |  |   | 41     |  
|State and local            |  |                            | 7,569  |   |                                         |   | 779   |                                           |  |                            | 306   |  |   | (315   | )
|                           |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|                           |  |                            | 48,643 |   |                                         |   | 5,004 |                                           |  |                            | 447   |  |   | (401   | )
|Deferred                   |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|Federal                    |  |                            | (4,017 | ) |                                         |   | (496  | )                                         |  |                            | 7,973 |  |   | 9,397  |  
|State and local            |  |                            | (731   | ) |                                         |   | (90   | )                                         |  |                            | 900   |  |   | 1,061  |  
|                           |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|                           |  |                            | (4,748 | ) |                                         |   | (586  | )                                         |  |                            | 8,873 |  |   | 10,458 |  
|                           |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  
|Provision for income taxes |  | $                          | 43,895 |   |                                         | $ | 4,418 |                                           |  | $                          | 9,320 |  | $ | 10,057 |  
|                           |  |                            |        |   |                                         |   |       |                                           |  |                            |       |  |   |        |  



Prior to the July 23,
2003 acquisition of Brience, Brience filed separate income tax returns and its losses were not available to us in those tax periods. The Brience loss does not generate a current tax benefit due to the history of earnings and losses, uncertainty of
the realization of our deferred tax assets, and the absence of sufficient taxable income in prior carryback years. The reconciliation of the income tax provision (benefit) based on the U.S statutory rate (35%) to our income tax provision is as
follows:



|                                   |  |                            |   |  |                                         |   |  |                                           |   |  |                            |   
|---------------------------------- |  | -------------------------- | - |  | --------------------------------------- | - |  | ----------------------------------------- | - |  | -------------------------- | --
|                                   |  | Predecessor                |   |  | Successor                               |  
|                                   |  | Year EndedDecember 31,2001 |   |  | Period fromJanuary 1 toFebruary 13,2002 |   |  | Period fromFebruary 14 toDecember 31,2002 |   |  | Year EndedDecember 31,2003 |   
|Statutory federal income tax rate  |  | 35.0                       | % |  | 35.0                                    | % |  | 35.0                                      | % |  | (35.0                      | )%
|State and local income tax, net of |  | 3.8                        |   |  | 4.0                                     |   |  | 2.2                                       |   |  | (3.9                       | ) 
|Impact of foreign tax rates        |  |                           |   |  |                                        |   |  |                                          |   |  | 1.1                        |   
|Other, net                         |  |                           |   |  |                                        |   |  | 0.5                                       |   |  | 1.5                        |   
|Valuation allowance                |  |                           |   |  |                                        |   |  | 43.4                                      |   |  | 57.3                       |   
|                                   |  |                            |   |  |                                         |   |  |                                           |   |  |                            |   
|                                   |  | 38.8                       | % |  | 39.0                                    | % |  | 81.1                                      | % |  | 21.0                       | % 
|                                   |  |                            |   |  |                                         |   |  |                                           |   |  |                            |   



Deferred income tax
assets and liabilities are recorded due to different carrying amounts for financial and income tax reporting purposes arising from cumulative temporary differences. Significant components of deferred tax (liabilities) assets are shown in the
following table:



|                                                   |  |                   |       |   |                   |   |         |         |  |   |             |   |  |   |         |  
|-------------------------------------------------- |  | ----------------- | ----- | - | ----------------- | - | ------- | ------- |  | - | ----------- | - |  | - | ------- | -
|                                                   |  | December 31, 2002 |       |   | December 31, 2003 |  
|                                                   |  | Current           |       |   | Non-Current       |   |         | Current |  |   | Non-Current |  
|Accrued expenses                                   |  | $                 |      |   |                   | $ |        |         |  | $ | 1,762       |   |  | $ |        |  
|Intangible assets                                  |  |                   |      |   |                   |   | (10,312 | )       |  |   |            |   |  |   | (19,330 | )
|Property and equipment                             |  |                   |      |   |                   |   | (27     | )       |  |   |            |   |  |   | (1,968  | )
|Employee benefits                                  |  |                   | 1,173 |   |                   |   |        |         |  |   | 2,256       |   |  |   |        |  
|Accounts receivable                                |  |                   | 979   |   |                   |   |        |         |  |   | 1,527       |   |  |   |        |  
|Intangible asset impairment                        |  |                   |      |   |                   |   |        |         |  |   |            |   |  |   | 19,845  |  
|R&E Credit                                         |  |                   |      |   |                   |   | 632     |         |  |   |            |   |  |   | 607     |  
|Federal and state net operating loss carryforwards |  |                   |      |   |                   |   | 37,411  |         |  |   |            |   |  |   | 48,822  |  
|Other-net                                          |  |                   | 282   |   |                   |   | 268     |         |  |   | 144         |   |  |   |        |  
|                                                   |  |                   |       |   |                   |   |         |         |  |   |             |   |  |   |         |  
|Deferred tax asset/(liability)                     |  |                   | 2,434 |   |                   |   | 27,972  |         |  |   | 5,689       |   |  |   | 47,976  |  
|Valuation allowance                                |  |                   | (324  | ) |                   |   | (38,955 | )       |  |   | (5,320      | ) |  |   | (67,676 | )
|                                                   |  |                   |       |   |                   |   |         |         |  |   |             |   |  |   |         |  
|Net deferred tax asset/(liability)                 |  | $                 | 2,110 |   |                   | $ | (10,983 | )       |  | $ | 369         |   |  | $ | (19,700 | )
|                                                   |  |                   |       |   |                   |   |         |         |  |   |             |   |  |   |         |  



SFAS No. 109,
Accounting for Income Taxes, requires a valuation allowance to reduce the deferred tax assets reported if, based upon the weight of evidence, it more likely than not that some portion or all of the deferred tax assets will not be
realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences and NOLs (net operating losses) become deductible or are utilized. As a result of
our impairment



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losses recognized in the fourth quarter of 2003, we concluded that it was appropriate to establish a full valuation
allowance against our net deferred tax assets, excluding deferred tax liabilities related to goodwill. The net deferred tax assets arise primarily from accumulated federal and state net operating losses of approximately $113,413 and $230,042,
respectively, which expire between 2006 and 2023, and the impairment of intangible assets. These losses relate primarily to Briences operations in periods prior to the February 14, 2002 date when those results have been included in our
financial statements. In addition, because we do not amortize goodwill for financial reporting purposes, we are unable to consider the associated deferred tax liabilities of approximately $19.3 million in this analysis.



The Tax Reform Act of 1986 and the California Conformity Act of 1987 impose
restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change, as defined by the Internal Revenue Code. Our ability to utilize net operating loss and tax credit carryforwards may
be subject to restrictions pursuant to these provisions. A portion of the Brience net operating losses may be subject to these restrictions.



21. Discontinued Operations of Brience



On July 31, 2001, Brience determined that it would divest itself of its subsidiary Hello Asia, Inc. that operated in several Asian countries. The
operations of Hello Asia, Inc. were sold or liquidated following this date and were concluded by December 31, 2002. Hello Asia, Inc. conducted an e-marketing customer rewards program. There were no Hello Asia assets or liabilities remaining at
December 31, 2002.



Results of operations of Hello Asia, Inc.
for the period from February 14, 2002 to December 31, 2002 are as follows:



|                                       |  |                                                 |        |  
|-------------------------------------- |  | ----------------------------------------------- | ------ | -
|                                       |  | Period fromFebruary 14, 2002to December 31,2002 |       
|Revenues                               |  | $                                               | 715    |  
|                                       |  |                                                 |        |  
|Costs and expenses:                    |  |                                                 |        |  
|Cost of operations                     |  |                                                 | 462    |  
|Sales and marketing                    |  |                                                 | 878    |  
|General and administrative             |  |                                                 | 983    |  
|                                       |  |                                                 |        |  
|                                       |  |                                                 | 2,323  |  
|                                       |  |                                                 |        |  
|Operating loss                         |  |                                                 | (1,608 | )
|Other income (expense), net:           |  |                                                 | 67     |  
|                                       |  |                                                 |        |  
|                                       |  |                                                 | 67     |  
|                                       |  |                                                 |        |  
|Loss before provision for income taxes |  |                                                 | (1,541 | )
|Provision for income taxes             |  |                                                 |       |  
|                                       |  |                                                 |        |  
|Net loss                               |  | $                                               | (1,541 | )
|                                       |  |                                                 |        |  



22. Commitments and Contingencies



We are currently a party to various claims and legal
actions that arise in the ordinary course of business. We believe such claims and legal actions, individually and in the aggregate, will not have a material adverse effect on our business, financial condition or results of operations. As of December
31, 2003, we have considered all of the claims and disputes of which we are aware and accrued amounts in our analysis of doubtful accounts or probable loss accruals.



The most significant of these claims, in terms of dollars sought, is described below.



SBC Communications, Inc. d/b/a SBC Ameritech, SBC southwestern Bell and SBC
Pacific Bell (collectively, SBC), have asserted claims against us in the total principal sum of $7,281, based on alleged overcharging for QRS and CNAM hubbing and transport services we provided. They have also declined to pay us an additional $1.9
million related to these same services. We deny the claims and believe they are unfounded and intend to vigorously defend ourselves. On April 15, 2003, we filed suit against SBC Southwestern Bell and SBC Pacific Bell in Hillsborough County Circuit
Court seeking monetary damages and a determination that SBC is not entitled to any sum they claim is owed. Our lawsuit was removed to Federal Court by SBC on the grounds of diversity jurisdiction. We disputed the grounds for removal and moved to
remand the action to state court. The Federal Court granted our motion to remand and the action is now pending in state court in Florida. SBC also filed a motion to dismiss on the grounds of a lack of jurisdiction. We dispute this claim. On October
6, 2003 Southwestern Bell Telephone, L.P. filed a breach of contract claim against us in state court in Texas seeking approximately $2.0 million. We have retained Texas counsel to seek a stay of the Texas proceedings pending disposition of the
matter in Florida. We are also denying this claim and intend to vigorously defend ourselves.



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23. Related Party Transactions



Successor



On February 14, 2002, we entered into several agreements to enable us to conduct its business on a stand-alone basis separate from Verizon, and for other
business reasons.



Professional Services Agreement



We have agreed to pay GTCR an annual fee of $500 for its ongoing services as
our financial and management consultant. We incurred $417 and $500 in the period from February 14, 2002 to December 31, 2002 and December 31, 2003, respectively.



Transition Services Agreement



Verizon agreed to provide us with services for accounts payable, general ledger/SAP, employee health benefits/COBRA, and payroll services for a period of
six months following February 14, 2002 for a total monthly fee of approximately $129. The transition services were completed in 2002. Verizon charged us $425 under this agreement from February 14, 2002 to December 31, 2002. This agreement has now
expired.



Distributed Processing Services Agreement



Verizon agreed to provide us with data center infrastructure and technical
support services in support of our distributed systems processing, including a data center network infrastructure, for a period of 18 months. We agreed to pay both monthly labor fees (capped at approximately $241 per month) and maintenance fees
(capped at $300 per month). If additional hardware, software or maintenance was added, Verizon charged us additional amounts. Amounts incurred under these agreements total $4,595 from February 14, 2002 to December 31, 2002.



On July 8, 2003, the Distributed Processing Services Agreement with VITI was
renewed for an additional 3 years. Amounts incurred under this agreement total $4,637 for the year ended December 31, 2003.



Mainframe Computing Services Agreement



Verizon agreed to provide certain mainframe computing and help desk services to us, for a period of six months, beginning February 14, 2002. We paid
Verizon a per service fee depending on the type of service provided. Therefore, monthly payments vary with usage. Typical services included CPU processing time, disk and tape storage, and tape mounts. There were no stated minimum fees. Amounts
incurred under these agreements total $3,888 from February 14, 2002 to December 31, 2002. This total excludes $564 in costs incurred during the period from February 14, 2002 to December 31, 2002 to transition our data to a new service provider. This
agreement has now expired.



Revenue Guaranty Agreement



Verizon agreed, through December 31, 2005, to make quarterly payments to us
if the amount of wireless revenues, as defined, for a given period is less than the revenue target for such period. In general the revenue guaranty payments will be due if wireless revenues during each of the years in the period from February 14,
2002 to December 31, 2005 are less than 82.5% of the agreed-upon targets. The payments due would be calculated as equal to 61.875% of the quarterly shortfall. No payments from Verizon are due under the guaranty agreement for the period from February
14, 2002 to December 31, 2002 or the year ended December 31, 2003.



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Other



GTCR Capital Partners, L.P., an investment fund affiliated with our controlling equityholder, purchased $30,000,000 face value amount of our Senior
Subordinated Notes in 2002. These notes were sold in the fourth quarter of 2003. In addition, Verizon purchased $75 million face value of our term loan B of the senior credit facility but had sold them by May 2002.



GTCR Fund VII, L.P., investment fund affiliated with our controlling
equityholder, has loaned Mr. Evans approximately $1,000,000 to fund a portion of the purchase price for his purchase of Co-Invest Units and Carried Units. This loan bears interest at a rate of 10% per annum. This loan is not recorded in our
financial statements.



We transact business and recognize
revenues and expenses from Transaction Network Services, Inc., a company affiliated with our controlling unitholder. For the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, we recognized revenues in the
amount of $1,617 and $2,313, respectively. For the period from February 14, 2002 to December 31, 2002 and the year ended December 31, 2003, we recognized expenses in the amount of $687 and $457, respectively.



See Notes 5 and 12 for other related party transactions.



Predecessor



We recognized revenues from Verizon Wireless for providing wireless
solutions that allow operators to communicate with each other regardless of the network technology, signaling standard or billing protocol deployed. We also recognized revenues from Verizon Network Services for providing data base services.



We had arrangements with Verizon Services for the provision of
various centralized services. These costs include corporate governance, corporate finance, external affairs, legal, media relations, employee communications, corporate advertising, human resources, and treasury. These costs were allocated to us
based on functional reviews of the work performed.



Verizon
Data Services provided data processing services, software application development and maintenance. We were charged for these affiliated transactions based on proportional cost allocation methodologies.



Verizon Realty provided us with office space and various facilities for
housing our equipment. We paid market rates for these facilities. The cost of leasing these facilities was included in cost of operations and general and administrative expenses.



In the opinion of management, the costs allocated for services and facilities were reasonable and represented our cost of
doing business.



We recognized interest income and expense in
connection with arrangements with Verizon (Parent) to provide short-term financing, investing and cash management services. We also declared and paid dividends to our parent, which is a wholly owned subsidiary of Verizon.



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Transactions with affiliates (including Verizon and its predecessors) are summarized as follows:



|                                     |  |                            |         |                                         |   |       
|------------------------------------ |  | -------------------------- | ------- | --------------------------------------- | - | ------
|                                     |  | Predecessor               
|                                     |  | Year EndedDecember 31,2001 |         | Period fromJanuary 1 toFebruary 13,2002
|Revenues                             |  |                            |         |                                         |   |       
|Verizon Wireless                     |  | $                          | 83,321  |                                         | $ | 8,591 
|Verizon Network Services             |  |                            | 33,884  |                                         |   | 6,496 
|Other Affiliates                     |  |                            | 5,192   |                                         |   | 751   
|                                     |  |                            |         |                                         |   |       
|                                     |  |                            | 122,397 |                                         |   | 15,838
|                                     |  |                            |         |                                         |   |       
|Cost of Operations:                  |  |                            |         |                                         |   |       
|Verizon Data Services                |  |                            | 25,311  |                                         |   | 2,903 
|Verizon Realty                       |  |                            | 2,173   |                                         |   | 277   
|Other Affiliates                     |  |                            | 6,976   |                                         |   | 1,239 
|                                     |  |                            |         |                                         |   |       
|                                     |  |                            | 34,460  |                                         |   | 4,419 
|General and Administrative Expenses: |  |                            |         |                                         |   |       
|Service Corporation Prorate          |  |                            | 3,597   |                                         |   | 326   
|Rent Expense                         |  |                            | 914     |                                         |   | 117   
|                                     |  |                            |         |                                         |   |       
|                                     |  |                            | 4,511   |                                         |   | 443   
|Interest income - Verizon (Parent)   |  |                            | 2,472   |                                         |   | 221   
|Interest expense - Verizon (Parent)  |  |                            |        |                                         |   |      



24. Quarterly Financial Information
(Unaudited)



The following presents quarterly financial
results for the year ended December 31, 2003. Previously reported quarters have been restated to give effect to the Brience, Inc. acquisition, accounted for similar to a pooling of interests (see Note 5).



|                                                                  |  |                                         |         |   |                    |   |        |                   |  |   |                    |   |  |   |         |  
|----------------------------------------------------------------- |  | --------------------------------------- | ------- | - | ------------------ | - | ------ | ----------------- |  | - | ------------------ | - |  | - | ------- | -
|                                                                  |  | Successor                               |        
|                                                                  |  | As Restated by Syniverse LLC            |        
|                                                                  |  | First Quarter2003                       |         |   | Second Quarter2003 |   |        | Third Quarter2003 |  |   | Fourth Quarter2003 |  
|Revenues                                                          |  | $                                       | 64,312  |   |                    | $ | 67,476 |                   |  | $ | 69,448             |   |  | $ | 70,172  |  
|Operating income (loss)                                           |  |                                         | 12,288  |   |                    |   | 16,883 |                   |  |   | 18,765             |   |  |   | (38,445 | )
|Net income (loss)                                                 |  |                                         | (3,179  | ) |                    |   | 1,287  |                   |  |   | 3,114              |   |  |   | (59,148 | )
|Net income (loss) attributable to common shareholders/unitholders |  |                                         | (10,061 | ) |                    |   | (5,769 | )                 |  |   | (4,116             | ) |  |   | (66,561 | )
|                                                                  | 
|                                                                  |  |                                         |         |  
|                                                                  |  | Brience, Inc.                           |        
|                                                                  |  | First Quarter2003                       |         |   | Second Quarter2003 |   |        | Third Quarter2003 |  |   | Fourth Quarter2003 |  
|Revenues                                                          |  | $                                       | 1,513   |   |                    | $ | 1,468  |                   |  | $ |                   |   |  | $ |        |  
|Operating income (loss)                                           |  |                                         | (849    | ) |                    |   | (486   | )                 |  |   |                   |   |  |   |        |  
|Net income (loss)                                                 |  |                                         | (842    | ) |                    |   | (508   | )                 |  |   |                   |   |  |   |        |  
|Net income (loss) attributable to common shareholders/unitholders |  |                                         | (842    | ) |                    |   | (508   | )                 |  |   |                   |   |  |   |        |  
|                                                                  | 
|                                                                  |  | Successor                               |        
|                                                                  |  | As Previously Reported by Syniverse LLC |        
|                                                                  |  | First Quarter2003                       |         |   | Second Quarter2003 |   |        | Third Quarter2003 |  |   | Fourth Quarter2003 |  
|Revenues                                                          |  | $                                       | 62,799  |   |                    | $ | 66,008 |                   |  | $ | 69,448             |   |  | $ | 70,172  |  
|Operating income (loss)                                           |  |                                         | 13,137  |   |                    |   | 17,369 |                   |  |   | 18,765             |   |  |   | (38,445 | )
|Net income (loss)                                                 |  |                                         | (2,337  | ) |                    |   | 1,795  |                   |  |   | 3,114              |   |  |   | (59,148 | )
|Net income (loss) attributable to common shareholders/unitholders |  |                                         | (9,219  | ) |                    |   | (5,261 | )                 |  |   | (4,116             | ) |  |   | (66,561 | )



The following presents
quarterly financial results for the year ended December 31, 2002.



|                                                                  |  |                                         |        |                                        |   |        |                   |  |   |                  |   |  |                   |        |   |  |   |        |  
|----------------------------------------------------------------- |  | --------------------------------------- | ------ | -------------------------------------- | - | ------ | ----------------- |  | - | ---------------- | - |  | ----------------- | ------ | - |  | - | ------ | -
|                                                                  |  | Predecessor                             |        | Successor                              |  
|                                                                  |  | Period fromJanuary 1 toFebruary 13,2002 |        | Period fromFebruary 14 toMarch 31,2002 |   |        | SecondQuarter2002 |  |   | ThirdQuarter2002 |   |  | FourthQuarter2002 |       
|Revenues                                                          |  | $                                       | 39,996 |                                        | $ | 44,027 |                   |  | $ | 88,645           |   |  | $                 | 87,060 |   |  | $ | 76,312 |  
|Operating income                                                  |  |                                         | 10,922 |                                        |   | 8,487  |                   |  |   | 16,511           |   |  |                   | 21,410 |   |  |   | 18,499 |  
|Net income (loss)                                                 |  |                                         | 6,917  |                                        |   | (1,249 | )                 |  |   | (1,710           | ) |  |                   | 1,646  |   |  |   | 1,944  |  
|Income (loss) from continuing operations                          |  |                                         |       |                                        |   | (388   | )                 |  |   | (1,127           | ) |  |                   | 2,390  |   |  |   | 1,297  |  
|Loss from discontinued operations                                 |  |                                         |       |                                        |   | (861   | )                 |  |   | (583             | ) |  |                   | (744   | ) |  |   | 647    |  
|Net income (loss) attributable to common shareholders/unitholders |  |                                         | 6,917  |                                        |   | (4,404 | )                 |  |   | (8,160           | ) |  |                   | (4,987 | ) |  |   | (4,770 | )



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25. Supplemental Consolidating Financial Information



Syniverses payment obligations under the senior notes, described in
Note 13 above, are guaranteed by Syniverse LLC, Syniverse Inc., and all domestic subsidiaries of Syniverse including Syniverse Finance, Syniverse Networks, and Syniverse Brience (collectively, the Guarantors). Such guarantees are full, unconditional
and joint and several. The following supplemental financial information sets forth, on an unconsolidated basis, balance sheets, statements of income, and statements of cash flows information for Syniverse LLC (parent only), Syniverse Inc., and for
the guarantor subsidiaries. The supplemental financial information reflects the investments of Syniverse LLC and Syniverse, Inc. using the equity method of accounting.



CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2003



|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|-------------------------------------------------------- |  | ------------ | -------- | - | ------------- | - | -------- | --------- |  | - | ----------------- | - |  | ---------------- | -------- | - | ---------------- | - | -------- | ------------ |  | - | ------------ | - |  | - | ---------- | - |  | - | -------- | -
|                                                         |  | SyniverseLLC |          |   | SyniverseInc. |   |          | Syniverse |  |   | SyniverseNetworks |   |  | SyniverseBrience |          |   | SyniverseFinance |   |          | Eliminations |  |   | Consolidated |  
|ASSETS                                                   |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Current assets:                                          |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Cash                                                     |  | $            |         |   |               | $ |         |           |  | $ | 8,293             |   |  | $                |         |   |                  | $ | 3        |              |  | $ | 3            |   |  | $ |           |   |  | $ | 8,299    |  
|Accounts receivable, net of allowances                   |  |              |         |   |               |   |         |           |  |   | 29,843            |   |  |                  | 30,789   |   |                  |   | 979      |              |  |   |             |   |  |   |           |   |  |   | 61,611   |  
|Accounts receivable - affiliates                         |  |              | 43       |   |               |   |         |           |  |   | 22,728            |   |  |                  | 493      |   |                  |   |         |              |  |   | 21,909       |   |  |   | (45,173    | ) |  |   |         |  
|Deferred tax assets                                      |  |              |         |   |               |   |         |           |  |   |                  |   |  |                  | 369      |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 369      |  
|Prepaid and other current assets                         |  |              |         |   |               |   |         |           |  |   | 5,795             |   |  |                  |         |   |                  |   | 489      |              |  |   |             |   |  |   |           |   |  |   | 6,284    |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total current assets                                     |  |              | 43       |   |               |   |         |           |  |   | 66,659            |   |  |                  | 31,651   |   |                  |   | 1,471    |              |  |   | 21,912       |   |  |   | (45,173    | ) |  |   | 76,563   |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Property and equipment, net                              |  |              |         |   |               |   |         |           |  |   | 13,867            |   |  |                  | 19,681   |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 33,548   |  
|Capitalized software, net of accumulated amortization    |  |              |         |   |               |   |         |           |  |   | 55,274            |   |  |                  | 12,379   |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 67,653   |  
|Deferred finance costs                                   |  |              |         |   |               |   |         |           |  |   | 14,584            |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 14,584   |  
|Goodwill                                                 |  |              |         |   |               |   |         |           |  |   | 59,861            |   |  |                  | 271,402  |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 331,263  |  
|Identifiable intangibles, net:                           |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Customer contract, net                                   |  |              |         |   |               |   |         |           |  |   | 5,880             |   |  |                  | 3,825    |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 9,705    |  
|Trademark                                                |  |              |         |   |               |   |         |           |  |   | 327               |   |  |                  | 358      |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 685      |  
|Customer base, net                                       |  |              |         |   |               |   |         |           |  |   | 107,820           |   |  |                  | 88,450   |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 196,270  |  
|Notes receivable-affiliates                              |  |              |         |   |               |   |         |           |  |   |                  |   |  |                  | 1,985    |   |                  |   |         |              |  |   | 656,520      |   |  |   | (658,505   | ) |  |   |         |  
|Investment in subsidiaries                               |  |              | 213,733  |   |               |   | 211,748  |           |  |   | 787,536           |   |  |                  | 469      |   |                  |   |         |              |  |   |             |   |  |   | (1,213,486 | ) |  |   |         |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total assets                                             |  | $            | 213,776  |   |               | $ | 211,748  |           |  | $ | 1,111,808         |   |  | $                | 430,200  |   |                  | $ | 1,471    |              |  | $ | 678,432      |   |  | $ | (1,917,164 | ) |  | $ | 730,271  |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|LIABILITIES AND UNITHOLDERS/ SHAREHOLDERS EQUITY       |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Current liabilities:                                     |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Accounts payable                                         |  | $            |         |   |               | $ |         |           |  | $ | 4,029             |   |  | $                |         |   |                  | $ |         |              |  | $ |             |   |  | $ |           |   |  | $ | 4,029    |  
|Accounts payable - affiliates                            |  |              |         |   |               |   |         |           |  |   |                  |   |  |                  | 773      |   |                  |   | 674      |              |  |   | 43,727       |   |  |   | (45,174    | ) |  |   |         |  
|Accrued payroll and related benefits                     |  |              |         |   |               |   |         |           |  |   | 8,879             |   |  |                  |         |   |                  |   | 2        |              |  |   |             |   |  |   |           |   |  |   | 8,881    |  
|Accrued interest                                         |  |              |         |   |               |   |         |           |  |   | 14,136            |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 14,136   |  
|Other accrued liabilities                                |  |              |         |   |               |   |         |           |  |   | 17,093            |   |  |                  |         |   |                  |   | 326      |              |  |   |             |   |  |   |           |   |  |   | 17,419   |  
|Current portion of Term Note B, net of discount          |  |              |         |   |               |   |         |           |  |   | 33,589            |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 33,589   |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total current liabilities                                |  |              |         |   |               |   |         |           |  |   | 77,726            |   |  |                  | 773      |   |                  |   | 1,002    |              |  |   | 43,727       |   |  |   | (45,174    | ) |  |   | 78,054   |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Long-term liabilities:                                   |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Deferred taxes                                           |  |              |         |   |               |   |         |           |  |   | 1,609             |   |  |                  | 18,091   |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 19,700   |  
|Payable to affiliate                                     |  |              |         |   |               |   |         |           |  |   | 401,984           |   |  |                  | 256,520  |   |                  |   |         |              |  |   |             |   |  |   | (658,504   | ) |  |   |         |  
|Subordinated Notes, net of discount                      |  |              |         |   |               |   |         |           |  |   | 241,037           |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 241,037  |  
|Term Note B, net of discount-less current portion        |  |              |         |   |               |   |         |           |  |   | 174,749           |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 174,749  |  
|Other liabilities                                        |  |              |         |   |               |   |         |           |  |   | 2,955             |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 2,955    |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total long-term liabilities                              |  |              |         |   |               |   |         |           |  |   | 822,334           |   |  |                  | 274,611  |   |                  |   |         |              |  |   |             |   |  |   | (658,504   | ) |  |   | 438,441  |  
|Unitholders/shareholders equity:                       |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Class A Preferred Units                                  |  |              |         |   |               |   |         |           |  |   |                  |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   |         |  
|Class B Preferred Units                                  |  |              | 252,367  |   |               |   |         |           |  |   |                  |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 252,367  |  
|Common Units                                             |  |              | 120,351  |   |               |   |         |           |  |   |                  |   |  |                  |         |   |                  |   | 117,340  |              |  |   |             |   |  |   | (117,340   | ) |  |   | 120,351  |  
|Common Stock                                             |  |              |         |   |               |   | 99       |           |  |   |                  |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   | (99        | ) |  |   |         |  
|Preferred Stock                                          |  |              |         |   |               |   | 3        |           |  |   |                  |   |  |                  |         |   |                  |   |         |              |  |   |             |   |  |   | (3         | ) |  |   |         |  
|Additional paid-in capital                               |  |              |         |   |               |   | 370,588  |           |  |   | 370,690           |   |  |                  | 315,820  |   |                  |   |         |              |  |   | 686,436      |   |  |   | (1,743,534 | ) |  |   |         |  
|Retained earnings (accumulated deficit)                  |  |              | (159,368 | ) |               |   | (159,368 | )         |  |   | (159,368          | ) |  |                  | (161,430 | ) |                  |   | (117,297 | )            |  |   | (51,731      | ) |  |   | 649,194    |   |  |   | (159,368 | )
|Accumulated other comprehensive income                   |  |              | 426      |   |               |   | 426      |           |  |   | 426               |   |  |                  | 426      |   |                  |   | 426      |              |  |   |             |   |  |   | (1,704     | ) |  |   | 426      |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total unitholders/shareholders equity                  |  |              | 213,776  |   |               |   | 211,748  |           |  |   | 211,748           |   |  |                  | 154,816  |   |                  |   | 469      |              |  |   | 634,705      |   |  |   | (1,213,486 | ) |  |   | 213,776  |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total liabilities and unitholders/ shareholders equity |  | $            | 213,776  |   |               | $ | 211,748  |           |  | $ | 1,111,808         |   |  | $                | 430,200  |   |                  | $ | 1,471    |              |  | $ | 678,432      |   |  | $ | (1,917,164 | ) |  | $ | 730,271  |  
|                                                         |  |              |          |   |               |   |          |           |  |   |                   |   |  |                  |          |   |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  



95



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##### Table of Contents

CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2003



|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|-------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------- | - | ------- | --------- |  | - | ----------------- | - |  | ---------------- | ------- | - | ---------------- | - | ------ | ------------ |  | - | ------------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                           |  | SyniverseLLC |         |   | SyniverseInc. |   |         | Syniverse |  |   | SyniverseNetworks |   |  | SyniverseBrience |         |   | SyniverseFinance |   |        | Eliminations |  |   | Consolidated |  
|Revenues                                                                   |  | $            |        |   |               | $ |        |           |  | $ | 136,399           |   |  | $                | 130,532 |   |                  | $ | 4,477  |              |  | $ |             |   |  | $ |        |   |  | $ | 271,408 |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Costs and expenses:                                                        |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cost of operations                                                         |  |              |        |   |               |   |        |           |  |   | 40,603            |   |  |                  | 67,970  |   |                  |   | 1,171  |              |  |   |             |   |  |   |        |   |  |   | 109,744 |  
|Sales and marketing                                                        |  |              |        |   |               |   |        |           |  |   | 10,411            |   |  |                  | 7,724   |   |                  |   | 496    |              |  |   |             |   |  |   |        |   |  |   | 18,631  |  
|General and administrative                                                 |  |              |        |   |               |   |        |           |  |   | 20,521            |   |  |                  | 15,333  |   |                  |   | 3,999  |              |  |   | 28           |   |  |   |        |   |  |   | 39,881  |  
|Provision for (recovery of) uncollectible accounts                         |  |              |        |   |               |   |        |           |  |   | (273              | ) |  |                  | 652     |   |                  |   | 87     |              |  |   |             |   |  |   |        |   |  |   | 466     |  
|Depreciation and amortization                                              |  |              |        |   |               |   |        |           |  |   | 22,855            |   |  |                  | 14,416  |   |                  |   | 48     |              |  |   |             |   |  |   |        |   |  |   | 37,319  |  
|Restructuring                                                              |  |              |        |   |               |   |        |           |  |   | 1,014             |   |  |                  | 1,051   |   |                  |   | 99     |              |  |   |             |   |  |   |        |   |  |   | 2,164   |  
|Impairment loss on intangible assets                                       |  |              |        |   |               |   |        |           |  |   | 27,070            |   |  |                  | 26,642  |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | 53,712  |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|                                                                           |  |              |        |   |               |   |        |           |  |   | 122,201           |   |  |                  | 133,788 |   |                  |   | 5,900  |              |  |   | 28           |   |  |   |        |   |  |   | 261,917 |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Operating income                                                           |  |              |        |   |               |   |        |           |  |   | 14,198            |   |  |                  | (3,256  | ) |                  |   | (1,423 | )            |  |   | (28          | ) |  |   |        |   |  |   | 9,491   |  
|                                                                           |  |              |         |   |               |   |         |          
|Other income (expense), net                                                |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Income from equity investment                                              |  |              | (57,926 | ) |               |   | (47,869 | )         |  |   | 40,130            |   |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   | 65,665  |   |  |   |        |  
|Interest income                                                            |  |              |        |   |               |   |        |           |  |   | 8,870             |   |  |                  | 263     |   |                  |   | 8      |              |  |   | 78,551       |   |  |   | (86,924 | ) |  |   | 768     |  
|Interest expense                                                           |  |              |        |   |               |   |        |           |  |   | (111,066          | ) |  |                  | (33,963 | ) |                  |   | (23    | )            |  |   |             |   |  |   | 86,924  |   |  |   | (58,128 | )
|Other, net                                                                 |  |              |        |   |               |   |        |           |  |   | (1                | ) |  |                  |        |   |                  |   | 1      |              |  |   |             |   |  |   |        |   |  |   |        |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|                                                                           |  |              | (57,926 | ) |               |   | (47,869 | )         |  |   | (62,067           | ) |  |                  | (33,700 | ) |                  |   | (14    | )            |  |   | 78,551       |   |  |   | 65,665  |   |  |   | (57,360 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Income (loss) from continuing operations before provision for income taxes |  |              | (57,926 | ) |               |   | (47,869 | )         |  |   | (47,869           | ) |  |                  | (36,956 | ) |                  |   | (1,437 | )            |  |   | 78,523       |   |  |   | 65,665  |   |  |   | (47,869 | )
|Provision for income taxes                                                 |  |              |        |   |               |   | 10,057  |           |  |   | 10,057            |   |  |                  | 9,220   |   |                  |   |       |              |  |   | 27,483       |   |  |   | (46,760 | ) |  |   | 10,057  |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss)                                                          |  |              | (57,926 | ) |               |   | (57,926 | )         |  |   | (57,926           | ) |  |                  | (46,176 | ) |                  |   | (1,437 | )            |  |   | 51,040       |   |  |   | 112,425 |   |  |   | (57,926 | )
|Preferred unit dividends                                                   |  |              | (28,581 | ) |               |   | (30,230 | )         |  |   |                  |   |  |                  | (20,889 | ) |                  |   |       |              |  |   |             |   |  |   | 51,119  |   |  |   | (28,581 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss) attributable to common unitholders/shareholders          |  | $            | (86,507 | ) |               | $ | (88,156 | )         |  | $ | (57,926           | ) |  | $                | (67,065 | ) |                  | $ | (1,437 | )            |  | $ | 51,040       |   |  | $ | 163,544 |   |  | $ | (86,507 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  



96



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##### Table of Contents

CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2003



|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|-------------------------------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------- | - | ------- | --------- |  | - | ----------------- | - |  | ---------------- | ------- | - | ---------------- | - | ------ | ------------ |  | - | ------------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                                                   |  | SyniverseLLC |         |   | SyniverseInc. |   |         | Syniverse |  |   | SyniverseNetworks |   |  | SyniverseBrience |         |   | SyniverseFinance |   |        | Eliminations |  |   | Consolidated |  
|Cash flows from operating activities                                                               |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss)                                                                                  |  | $            | (57,926 | ) |               | $ | (57,926 | )         |  | $ | (57,926           | ) |  | $                | (46,176 | ) |                  | $ | (1,437 | )            |  | $ | 51,040       |   |  | $ | 112,425 |   |  | $ | (57,926 | )
|Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Depreciation and amortization                                                                      |  |              |        |   |               |   |        |           |  |   | 34,801            |   |  |                  | 14,416  |   |                  |   | 48     |              |  |   |             |   |  |   |        |   |  |   | 49,265  |  
|Provision for uncollectible accounts                                                               |  |              |        |   |               |   |        |           |  |   | (273              | ) |  |                  | 652     |   |                  |   | 87     |              |  |   |             |   |  |   |        |   |  |   | 466     |  
|Deferred income tax benefit                                                                        |  |              |        |   |               |   |        |           |  |   | (4,675            | ) |  |                  | 15,133  |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | 10,458  |  
|Income from equity investment                                                                      |  |              | 57,926  |   |               |   | 47,869  |           |  |   | (40,130           | ) |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   | (65,665 | ) |  |   |        |  
|Deferred charges                                                                                   |  |              |        |   |               |   |        |           |  |   | (2,000            | ) |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (2,000  | )
|Gain on forgiveness of debt                                                                        |  |              |        |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   | (1,250 | )            |  |   |             |   |  |   |        |   |  |   | (1,250  | )
|Loss on disposition of property                                                                    |  |              |        |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   | 327    |              |  |   |             |   |  |   |        |   |  |   | 327     |  
|Impairment losses on intangible assets                                                             |  |              |        |   |               |   |        |           |  |   | 27,070            |   |  |                  | 26,642  |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | 53,712  |  
|Changes in operating assets and liabilities:                                                       |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Accounts receivable                                                                                |  |              |        |   |               |   |        |           |  |   | (9,989            | ) |  |                  | 3,828   |   |                  |   | (483   | )            |  |   | 21,308       |   |  |   | (21,308 | ) |  |   | (6,644  | )
|Other current assets                                                                               |  |              |        |   |               |   |        |           |  |   | (1,920            | ) |  |                  |        |   |                  |   | 1,921  |              |  |   |             |   |  |   |        |   |  |   | 1       |  
|Accounts payable                                                                                   |  |              |        |   |               |   |        |           |  |   | (15,244           | ) |  |                  | 772     |   |                  |   | 561    |              |  |   | 27,483       |   |  |   | (15,446 | ) |  |   | (1,874  | )
|Other current liabilities                                                                          |  |              | (56     | ) |               |   | 10,057  |           |  |   | 3,570             |   |  |                  |        |   |                  |   | (3,821 | )            |  |   | (1           | ) |  |   | (10,003 | ) |  |   | (254    | )
|Other assets                                                                                       |  |              |         |   |               |   |         |           |  |   |                  |   |  |                  |        |   |                  |   | 1,130  |              |  |   |             |   |  |   |        |   |  |   | 1,130   |  
|Other liabilities                                                                                  |  |              |        |   |               |   |        |           |  |   | 2,955             |   |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | 2,955   |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash provided by (used in) operating activities                                                |  |              | (56     | ) |               |   |        |           |  |   | (63,761           | ) |  |                  | 15,267  |   |                  |   | (2,917 | )            |  |   | 99,830       |   |  |   | 3       |   |  |   | 48,366  |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash flows from investing activities                                                               |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Capital expenditures                                                                               |  |              |        |   |               |   |        |           |  |   | (3,013            | ) |  |                  | (15,267 | ) |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (18,280 | )
|Acquisition of Softwright Holdings, net of cash acquired                                           |  |              |        |   |               |   |        |           |  |   | (603              | ) |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (603    | )
|Dividends received from equity investment                                                          |  |              |        |   |               |   |        |           |  |   | 99,858            |   |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   | (99,858 | ) |  |   |        |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash provided by (used in) investing activities                                                |  |              |        |   |               |   |        |           |  |   | 96,242            |   |  |                  | (15,267 | ) |                  |   |       |              |  |   |             |   |  |   | (99,858 | ) |  |   | (18,883 | )
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash flows from financing activities                                                               |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Dividends paid                                                                                     |  |              |        |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   |       |              |  |   | (99,855      | ) |  |   | 99,855  |   |  |   |        |  
|Debt issue fees paid                                                                               |  |              |        |   |               |   |        |           |  |   | (1,683            | ) |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (1,683  | )
|Principal payments on long-term debt                                                               |  |              |        |   |               |   |        |           |  |   | (62,059           | ) |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (62,059 | )
|Issuance of common units                                                                           |  |              | 65      |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | 65      |  
|Repurchase of common units                                                                         |  |              | (9      | ) |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   |       |              |  |   |             |   |  |   |        |   |  |   | (9      | )
|Notes receivable from stockholders of Brience                                                      |  |              |        |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   | 312    |              |  |   |             |   |  |   |        |   |  |   | 312     |  
|Capital contribution                                                                               |  |              |        |   |               |   |        |           |  |   | (22               | ) |  |                  |        |   |                  |   |       |              |  |   | 22           |   |  |   |        |   |  |   |        |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash provided by (used in) financing activities                                                |  |              | 56      |   |               |   |        |           |  |   | (63,764           | ) |  |                  |        |   |                  |   | 312    |              |  |   | (99,833      | ) |  |   | 99,855  |   |  |   | (63,374 | )
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net increase in cash                                                                               |  |              |        |   |               |   |        |           |  |   | (31,283           | ) |  |                  |        |   |                  |   | (2,605 | )            |  |   | (3           | ) |  |   |        |   |  |   | (33,891 | )
|Cash at beginning of period                                                                        |  |              |        |   |               |   |        |           |  |   | 39,576            |   |  |                  |        |   |                  |   | 2,608  |              |  |   | 6            |   |  |   |        |   |  |   | 42,190  |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash at end of period                                                                              |  | $            |        |   |               | $ |        |           |  | $ | 8,293             |   |  | $                |        |   |                  | $ | 3      |              |  | $ | 3            |   |  | $ |        |   |  | $ | 8,299   |  
|                                                                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |        |              |  |   |              |   |  |   |         |   |  |   |         |  



97



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##### Table of Contents

CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2002



|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|-------------------------------------------------------- |  | ------------ | ------- | - | ------------- | - | --------- |  | ----------------- | --------- | ---------------- | - | ------- | ---------------- | - | -------- | ------------ |  | - | ------------ | - |  | - | ---------- | - |  | - | -------- | -
|                                                         |  | SyniverseLLC |         |   | SyniverseInc. |   | Syniverse |  | SyniverseNetworks |           | SyniverseBrience |   |         | SyniverseFinance |   |          | Eliminations |  |   | Consolidated |  
|ASSETS                                                   |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Current assets:                                          |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Cash                                                     |  | $            |        |   |               | $ |          |  | $                 | 39,576    |                  | $ |        |                  | $ | 2,608    |              |  | $ | 6            |   |  | $ |           |   |  | $ | 42,190   |  
|Accounts receivable, net of allowances                   |  |              |        |   |               |   |          |  |                   | 28,808    |                  |   | 25,811  |                  |   | 583      |              |  |   |             |   |  |   | (9         | ) |  |   | 55,193   |  
|Accounts receivable - affiliates                         |  |              |        |   |               |   |          |  |                   | 6,546     |                  |   | 9,698   |                  |   |         |              |  |   |             |   |  |   | (16,244    | ) |  |   |         |  
|Deferred tax assets                                      |  |              |        |   |               |   |          |  |                   | 1,872     |                  |   | 238     |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 2,110    |  
|Prepaid and other current assets                         |  |              |        |   |               |   |          |  |                   | 3,827     |                  |   |        |                  |   | 1,984    |              |  |   |             |   |  |   |           |   |  |   | 5,811    |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total current assets                                     |  |              |        |   |               |   |          |  |                   | 80,629    |                  |   | 35,747  |                  |   | 5,175    |              |  |   | 6            |   |  |   | (16,253    | ) |  |   | 105,304  |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Property and equipment, net                              |  |              |        |   |               |   |          |  |                   | 16,762    |                  |   | 16,591  |                  |   | 375      |              |  |   |             |   |  |   |           |   |  |   | 33,728   |  
|Capitalized software, net of accumulated amortization    |  |              |        |   |               |   |          |  |                   | 65,722    |                  |   | 8,192   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 73,914   |  
|Deferred finance costs                                   |  |              |        |   |               |   |          |  |                   | 16,015    |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 16,015   |  
|Goodwill                                                 |  |              |        |   |               |   |          |  |                   | 59,157    |                  |   | 271,402 |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 330,559  |  
|Identifiable intangibles, net:                           |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Customer contract, net                                   |  |              |        |   |               |   |          |  |                   | 7,969     |                  |   | 5,625   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 13,594   |  
|Trademark                                                |  |              |        |   |               |   |          |  |                   | 24,700    |                  |   | 27,000  |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 51,700   |  
|Customer base, net                                       |  |              |        |   |               |   |          |  |                   | 113,794   |                  |   | 93,330  |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 207,124  |  
|Notes receivable-affiliates                              |  |              |        |   |               |   |          |  |                   | 256,520   |                  |   | 1,985   |                  |   |         |              |  |   | 400,000      |   |  |   | (658,505   | ) |  |   |         |  
|Other assets                                             |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   | 1,130    |              |  |   |             |   |  |   |           |   |  |   | 1,130    |  
|Investment in subsidiary                                 |  |              | 269,752 |   |               |   | 267,768   |  |                   | 595,650   |                  |   |        |                  |   |         |              |  |   |             |   |  |   | (1,133,170 | ) |  |   |         |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total assets                                             |  | $            | 269,752 |   |               | $ | 267,768   |  | $                 | 1,236,918 |                  | $ | 459,872 |                  | $ | 6,680    |              |  | $ | 400,006      |   |  | $ | (1,807,928 | ) |  | $ | 833,068  |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|LIABILITIES AND UNITHOLDERS/ SHAREHOLDERS EQUITY       |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Current liabilities:                                     |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Accounts payable                                         |  | $            |        |   |               | $ |          |  | $                 | 8,089     |                  | $ |        |                  | $ | 115      |              |  | $ |             |   |  | $ |           |   |  | $ | 8,204    |  
|Accounts payable -affiliates                             |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   |         |              |  |   | 2,896        |   |  |   | (2,896     | ) |  |   |         |  
|Accrued payroll and related benefits                     |  |              |        |   |               |   |          |  |                   | 6,672     |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 6,672    |  
|Accrued interest                                         |  |              |        |   |               |   |          |  |                   | 27,956    |                  |   |        |                  |   |         |              |  |   |             |   |  |   | (13,348    | ) |  |   | 14,608   |  
|Other accrued liabilities                                |  |              |        |   |               |   |          |  |                   | 11,692    |                  |   |        |                  |   | 4,148    |              |  |   | 1            |   |  |   |           |   |  |   | 15,841   |  
|Current portion of Term Note B, net of discount          |  |              |        |   |               |   |          |  |                   | 52,736    |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 52,736   |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total current liabilities                                |  |              |        |   |               |   |          |  |                   | 107,145   |                  |   |        |                  |   | 4,263    |              |  |   | 2,897        |   |  |   | (16,244    | ) |  |   | 98,061   |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Long-term liabilities:                                   |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Deferred taxes                                           |  |              |        |   |               |   |          |  |                   | 8,156     |                  |   | 2,827   |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 10,983   |  
|Payable to affiliate                                     |  |              | 9       |   |               |   |          |  |                   | 401,985   |                  |   | 256,520 |                  |   |         |              |  |   |             |   |  |   | (658,514   | ) |  |   |         |  
|Subordinated Notes, net of discount                      |  |              |        |   |               |   |          |  |                   | 240,257   |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 240,257  |  
|Term Note B, net of discount less current portion        |  |              |        |   |               |   |          |  |                   | 211,607   |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 211,607  |  
|Other liabilities                                        |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   | 1,250    |              |  |   |             |   |  |   |           |   |  |   | 1,250    |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total long-term liabilities                              |  |              | 9       |   |               |   |          |  |                   | 862,005   |                  |   | 259,347 |                  |   | 1,250    |              |  |   |             |   |  |   | (658,514   | ) |  |   | 464,097  |  
|                                                         |  |              |         |   |               |   |           | 
|Commitments and contingencies:                           |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Redeemable preferred stock                               |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   | 119      |              |  |   |             |   |  |   |           |   |  |   | 119      |  
|                                                         |  |              |         |   |               |   |           | 
|Unitholders/shareholders equity:                       |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Class A Preferred Units                                  |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   |         |  
|Class B Preferred Units                                  |  |              | 252,367 |   |               |   |          |  |                   |          |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 252,367  |  
|Common Units                                             |  |              | 2,967   |   |               |   |          |  |                   |          |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | 2,967    |  
|Common Stock                                             |  |              |        |   |               |   | 99        |  |                   |          |                  |   |        |                  |   | 1        |              |  |   |             |   |  |   | (99        | ) |  |   | 1        |  
|Preferred Stock                                          |  |              |        |   |               |   | 3         |  |                   |          |                  |   |        |                  |   |         |              |  |   |             |   |  |   | (3         | ) |  |   |         |  
|Additional paid-in capital                               |  |              |        |   |               |   | 253,248   |  |                   | 253,350   |                  |   | 198,480 |                  |   | 117,219  |              |  |   | 400,025      |   |  |   | (1,105,103 | ) |  |   | 117,219  |  
|Notes receivable from shareholders                       |  |              |        |   |               |   |          |  |                   |          |                  |   |        |                  |   | (312     | )            |  |   |             |   |  |   |           |   |  |   | (312     | )
|Retained earnings (accumulated deficit)                  |  |              | 14,418  |   |               |   | 14,418    |  |                   | 14,418    |                  |   | 2,045   |                  |   | (115,860 | )            |  |   | (2,916       | ) |  |   | (27,965    | ) |  |   | (101,442 | )
|Less cost of treasury units (270,270 common units)       |  |              | (9      | ) |               |   |          |  |                   |          |                  |   |        |                  |   |         |              |  |   |             |   |  |   |           |   |  |   | (9       | )
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total unitholders/shareholders equity                  |  |              | 269,743 |   |               |   | 267,768   |  |                   | 267,768   |                  |   | 200,525 |                  |   | 1,048    |              |  |   | 397,109      |   |  |   | (1,133,170 | ) |  |   | 270,791  |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  
|Total liabilities and unitholders/ shareholders equity |  | $            | 269,752 |   |               | $ | 267,768   |  | $                 | 1,236,918 |                  | $ | 459,872 |                  | $ | 6,680    |              |  | $ | 400,006      |   |  | $ | (1,807,928 | ) |  | $ | 833,068  |  
|                                                         |  |              |         |   |               |   |           |  |                   |           |                  |   |         |                  |   |          |              |  |   |              |   |  |   |            |   |  |   |          |  



98



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##### Table of Contents

CONSOLIDATING STATEMENT OF OPERATIONS

PERIOD FROM FEBRUARY 14, 2002 TO DECEMBER 31, 2002



|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|-------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------- | - | ------- | --------- |  | - | ----------------- | - |  | ---------------- | ------- | - | ---------------- | - | ------- | ------------ |  | - | ------------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                           |  | SyniverseLLC |         |   | SyniverseInc. |   |         | Syniverse |  |   | SyniverseNetworks |   |  | SyniverseBrience |         |   | SyniverseFinance |   |         | Eliminations |  |   | Consolidated |  
|Revenues                                                                   |  | $            |        |   |               | $ |        |           |  |   | 188,221           |   |  | $                | 102,995 |   |                  | $ | 4,828   |              |  | $ |             |   |  | $ |        |   |  | $ | 296,044 |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Costs and expenses:                                                        |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cost of operations                                                         |  |              |        |   |               |   |        |           |  |   | 70,541            |   |  |                  | 56,710  |   |                  |   | 3,113   |              |  |   |             |   |  |   |        |   |  |   | 130,364 |  
|Sales and marketing                                                        |  |              |        |   |               |   |        |           |  |   | 14,529            |   |  |                  | 4,875   |   |                  |   | 3,302   |              |  |   |             |   |  |   |        |   |  |   | 22,706  |  
|General and administrative                                                 |  |              |        |   |               |   |        |           |  |   | 26,136            |   |  |                  | 7,159   |   |                  |   | 9,314   |              |  |   | 21           |   |  |   |        |   |  |   | 42,630  |  
|Provision for (recovery of) uncollectible accounts                         |  |              |        |   |               |   |        |           |  |   | (319              | ) |  |                  | (284    | ) |                  |   | (90     | )            |  |   |             |   |  |   |        |   |  |   | (693    | )
|Depreciation and amortization                                              |  |              |        |   |               |   |        |           |  |   | 23,247            |   |  |                  | 8,863   |   |                  |   | 1,175   |              |  |   |             |   |  |   |        |   |  |   | 33,285  |  
|Restructuring                                                              |  |              |        |   |               |   |        |           |  |   | 1,788             |   |  |                  | 1,057   |   |                  |   |        |              |  |   |             |   |  |   |        |   |  |   | 2,845   |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|                                                                           |  |              |        |   |               |   |        |           |  |   | 135,922           |   |  |                  | 78,380  |   |                  |   | 16,814  |              |  |   | 21           |   |  |   |        |   |  |   | 231,137 |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Operating income                                                           |  |              |        |   |               |   |        |           |  |   | 52,299            |   |  |                  | 24,615  |   |                  |   | (11,986 | )            |  |   | (21          | ) |  |   |        |   |  |   | 64,907  |  
|                                                                           |  |              |         |   |               |   |         |          
|Other income (expense), net                                                |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Income from equity investment                                              |  |              | 631     |   |               |   | 9,951   |           |  |   | 35,974            |   |  |                  |        |   |                  |   |        |              |  |   |             |   |  |   | (46,556 | ) |  |   |        |  
|Interest income                                                            |  |              |        |   |               |   |        |           |  |   | 22,130            |   |  |                  | 230     |   |                  |   | 100     |              |  |   | 46,432       |   |  |   | (67,927 | ) |  |   | 965     |  
|Interest expense                                                           |  |              |        |   |               |   |        |           |  |   | (100,444          | ) |  |                  | (21,495 | ) |                  |   | (93     | )            |  |   |             |   |  |   | 67,927  |   |  |   | (54,105 | )
|Other, net                                                                 |  |              |        |   |               |   |        |           |  |   | (8                | ) |  |                  |        |   |                  |   | (267    | )            |  |   |             |   |  |   |        |   |  |   | (275    | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|                                                                           |  |              | 631     |   |               |   | 9,951   |           |  |   | (42,348           | ) |  |                  | (21,265 | ) |                  |   | (260    | )            |  |   | 46,432       |   |  |   | (46,556 | ) |  |   | (53,415 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Income (loss) from continuing operations before provision for income taxes |  |              | 631     |   |               |   | 9,951   |           |  |   | 9,951             |   |  |                  | 3,350   |   |                  |   | (12,246 | )            |  |   | 46,411       |   |  |   | (46,556 | ) |  |   | 11,492  |  
|Provision for income taxes                                                 |  |              |        |   |               |   | 9,320   |           |  |   | 9,320             |   |  |                  | 1,305   |   |                  |   |        |              |  |   | 16,244       |   |  |   | (26,869 | ) |  |   | 9,320   |  
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Income (loss) from continuing operations                                   |  |              | 631     |   |               |   | 631     |           |  |   | 631               |   |  |                  | 2,045   |   |                  |   | (12,246 | )            |  |   | 30,167       |   |  |   | (19,687 | ) |  |   | 2,172   |  
|                                                                           |  |              |         |   |               |   |         |          
|Discontinued operations:                                                   |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Loss from discontinued operations, net of taxes                            |  |              |        |   |               |   |        |           |  |   |                  |   |  |                  |        |   |                  |   | (1,541  | )            |  |   |             |   |  |   |        |   |  |   | (1,541  | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss)                                                          |  |              | 631     |   |               |   | 631     |           |  |   | 631               |   |  |                  | 2,045   |   |                  |   | (13,787 | )            |  |   | 30,167       |   |  |   | (19,687 | ) |  |   | 631     |  
|Preferred unit dividends                                                   |  |              | (22,952 | ) |               |   | (33,340 | )         |  |   |                  |   |  |                  | (12,390 | ) |                  |   |        |              |  |   |             |   |  |   | 45,730  |   |  |   | (22,952 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss) attributable to common unitholders/shareholders          |  | $            | (22,321 | ) |               | $ | (32,709 | )         |  | $ | 631               |   |  | $                | (10,345 | ) |                  | $ | (13,787 | )            |  | $ | 30,167       |   |  | $ | 26,043  |   |  | $ | (22,321 | )
|                                                                           |  |              |         |   |               |   |         |           |  |   |                   |   |  |                  |         |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  



99



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CONSOLIDATING STATEMENT OF CASH FLOWS

PERIOD FROM FEBRUARY 14, 2002 TO DECEMBER 31, 2002



|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|--------------------------------------------------------------------------------- |  | ------------ | ---- | - | ------------- | - | ------ | --------- |  | - | ----------------- | - |  | ---------------- | ------ | - | ---------------- | - | ------- | ------------ |  | - | ------------ | - |  | - | ------- | - |  | - | ------- | -
|                                                                                  |  | SyniverseLLC |      |   | SyniverseInc. |   |        | Syniverse |  |   | SyniverseNetworks |   |  | SyniverseBrience |        |   | SyniverseFinance |   |         | Eliminations |  |   | Consolidated |  
|Cash flows from operating activities                                              |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net income (loss)                                                                 |  | $            | 631  |   |               | $ | 631    |           |  | $ | 631               |   |  | $                | 2,045  |   |                  | $ | (13,787 | )            |  | $ | 30,167       |   |  | $ | (19,687 | ) |  | $ | 631     |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Depreciation and amortization                                                     |  |              |     |   |               |   |       |           |  |   | 31,924            |   |  |                  | 8,863  |   |                  |   | 1,175   |              |  |   |             |   |  |   |        |   |  |   | 41,962  |  
|Recovery of uncollectible accounts                                                |  |              |     |   |               |   |       |           |  |   | (319              | ) |  |                  | (284   | ) |                  |   | (90     | )            |  |   |             |   |  |   |        |   |  |   | (693    | )
|Deferred income tax benefit                                                       |  |              |     |   |               |   |       |           |  |   | 6,284             |   |  |                  | 2,589  |   |                  |   |        |              |  |   |             |   |  |   |        |   |  |   | 8,873   |  
|Income from equity investment                                                     |  |              | (631 | ) |               |   | (9,951 | )         |  |   | (35,974           | ) |  |                  |       |   |                  |   |        |              |  |   |             |   |  |   | 46,556  |   |  |   |        |  
|Loss on disposition of property                                                   |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |       |   |                  |   | 1,472   |              |  |   |             |   |  |   |        |   |  |   | 1,472   |  
|Changes in operating assets and liabilities:                                      |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Accounts receivable                                                               |  |              |     |   |               |   |       |           |  |   | 13,200            |   |  |                  | (7,989 | ) |                  |   | 2,264   |              |  |   |             |   |  |   |        |   |  |   | 7,475   |  
|Other current assets                                                              |  |              |     |   |               |   |       |           |  |   | (701              | ) |  |                  |       |   |                  |   | (1,113  | )            |  |   |             |   |  |   |        |   |  |   | (1,814  | )
|Accounts payable                                                                  |  |              |     |   |               |   |       |           |  |   | 9,182             |   |  |                  |       |   |                  |   | (183    | )            |  |   | 2,895        |   |  |   | (16,244 | ) |  |   | (4,350  | )
|Other current liabilities                                                         |  |              |     |   |               |   | 9,320  |           |  |   | 7,901             |   |  |                  |       |   |                  |   | 5       |              |  |   | 1            |   |  |   | (10,625 | ) |  |   | 6,602   |  
|Other assets                                                                      |  |              |     |   |               |   |       |           |  |   |                  |   |  |                  |       |   |                  |   | (393    | )            |  |   |             |   |  |   |        |   |  |   | (393    | )
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash provided by operating activities                                         |  |              |     |   |               |   |       |           |  |   | 32,128            |   |  |                  | 5,224  |   |                  |   | (10,650 | )            |  |   | 33,063       |   |  |   |        |   |  |   | 59,765  |  
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash flows from investing activities                                              |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Capital expenditures                                                              |  |              |     |   |               |   |       |           |  |   | (7,054            | ) |  |                  | (5,224 | ) |                  |   |        |              |  |   |             |   |  |   |        |   |  |   | (12,278 | )
|Dividends received from equity investment                                         |  |              |     |   |               |   |       |           |  |   | 33,082            |   |  |                  |       |   |                  |   |        |              |  |   |             |   |  |   | (33,082 | ) |  |   |        |  
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash provided by (used in) investing activities                               |  |              |     |   |               |   |       |           |  |   | 26,028            |   |  |                  | (5,224 | ) |                  |   |        |              |  |   |             |   |  |   | (33,082 | ) |  |   | (12,278 | )
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash flows from financing activities                                              |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Dividends paid                                                                    |  |              |     |   |               |   |       |           |  |   |                  |   |  |                  |       |   |                  |   |        |              |  |   | (33,082      | ) |  |   | 33,082  |   |  |   |        |  
|Excess cash received at purchase date                                             |  |              |     |   |               |   |       |           |  |   | 1,859             |   |  |                  |       |   |                  |   |        |              |  |   | 25           |   |  |   |        |   |  |   | 1,884   |  
|Principal payments on long-term debt                                              |  |              |     |   |               |   |       |           |  |   | (15,000           | ) |  |                  |       |   |                  |   | (641    | )            |  |   |             |   |  |   |        |   |  |   | (15,641 | )
|Retirement of short-term debt                                                     |  |              |     |   |               |   |       |           |  |   | (30,430           | ) |  |                  |       |   |                  |   |        |              |  |   |             |   |  |   |        |   |  |   | (30,430 | )
|Other                                                                             |  |              |     |   |               |   |       |           |  |   | (9                | ) |  |                  |       |   |                  |   |        |              |  |   |             |   |  |   |        |   |  |   | (9      | )
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net cash used in financing activities                                             |  |              |     |   |               |   |       |           |  |   | (43,580           | ) |  |                  |       |   |                  |   | (641    | )            |  |   | (33,057      | ) |  |   | 33,082  |   |  |   | (44,196 | )
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Net increase in cash                                                              |  |              |     |   |               |   |       |           |  |   | 14,576            |   |  |                  |       |   |                  |   | (11,291 | )            |  |   | 6            |   |  |   |        |   |  |   | 3,291   |  
|Cash at beginning of period                                                       |  |              |     |   |               |   |       |           |  |   | 25,000            |   |  |                  |       |   |                  |   | 13,899  |              |  |   |             |   |  |   |        |   |  |   | 38,899  |  
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  
|Cash at end of period                                                             |  | $            |     |   |               | $ |       |           |  | $ | 39,576            |   |  | $                |       |   |                  | $ | 2,608   |              |  | $ | 6            |   |  | $ |        |   |  | $ | 42,190  |  
|                                                                                  |  |              |      |   |               |   |        |           |  |   |                   |   |  |                  |        |   |                  |   |         |              |  |   |              |   |  |   |         |   |  |   |         |  



100



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Schedule IIValuation and Qualifying Accounts

Syniverse Holdings, LLC and Predecessor



|                                                   |  |                              |       |                             |   |       |                      |  |   |                          |      |  |   |      
|-------------------------------------------------- |  | ---------------------------- | ----- | --------------------------- | - | ----- | -------------------- |  | - | ------------------------ | ---- |  | - | -----
|Column A                                           |  | Column B                     |       | Column C                    |   |       | Column D             |  |   | Column E                
|Description                                        |  | Balance atBeginningof Period |       | Charged toCosts andExpenses |   |       | Deductions(Describe) |  |   | Balance at end of Period
|Allowance for doubtful accounts:                   |  |                              |       |                             |   |       |                      |  |   |                          |      |  |   |      
|Year ended December 31, 2001                       |  | $                            | 3,561 |                             | $ | 2,207 |                      |  | $ | (2,203                   | )(1) |  | $ | 3,565
|Period from January 1, 2002 to February 13, 2002   |  | $                            | 3,565 |                             | $ | 1,340 |                      |  | $ | (447                     | )(1) |  | $ | 4,458
|Period from February 14, 2002 to December 31, 2002 |  | $                            | 4,458 |                             | $ | (693  | )(2)                 |  | $ | (1,341                   | )(1) |  | $ | 2,424
|Year ended December 31,2003                        |  | $                            | 2,424 |                             | $ | 466   |                      |  | $ | (355                     | )(1) |  | $ | 2,535

---

|(1) | Write-offs of uncollectible accounts
|--- | ------------------------------------

|(2) | Reduction of estimated allowance
|--- | --------------------------------





|                                                   |  |                              |       |                             |   |                      |  |   |                          |      |  |   |      
|-------------------------------------------------- |  | ---------------------------- | ----- | --------------------------- | - | -------------------- |  | - | ------------------------ | ---- |  | - | -----
|Column A                                           |  | Column B                     |       | Column C                    |   | Column D             |  |   | Column E                
|Description                                        |  | Balance atBeginningof Period |       | Charged toCosts andExpenses |   | Deductions(Describe) |  |   | Balance at end of Period
|Accrual for restructuring:                         |  |                              |       |                             |   |                      |  |   |                          |      |  |   |      
|Year ended December 31, 2001                       |  | $                            |      |                             | $ |                     |  | $ |                         |      |  | $ |     
|Period from January 1, 2002 to February 13, 2002   |  | $                            |      |                             | $ |                     |  | $ |                         |      |  | $ |     
|Period from February 14, 2002 to December 31, 2002 |  |                              |       |                             |   |                      |  |   | (3,901                   | )(1) |  |   |      
|                                                   |  | $                            | 3,333 |                             | $ | 2,845                |  | $ | (666                     | )(2) |  | $ | 1,611
|Year ended December 31, 2003                       |  | $                            | 1,611 |                             | $ | 2,164                |  | $ | (3,775                   | )(1) |  | $ |     

---

|(1) | Payments
|--- | --------

|(2) | Reduction related to change in estimates of amounts reserved.
|--- | -------------------------------------------------------------



|                                                   |  |                              |        |                             |   |        |                      |  |                          |   |  |   |       
|-------------------------------------------------- |  | ---------------------------- | ------ | --------------------------- | - | ------ | -------------------- |  | ------------------------ | - |  | - | ------
|Column A                                           |  | Column B                     |        | Column C                    |   |        | Column D             |  | Column E                
|Description                                        |  | Balance atBeginningof Period |        | Charged toCosts andExpenses |   |        | Deductions(Describe) |  | Balance at end of Period
|Valuation allowance for deferred income taxes:     |  |                              |        |                             |   |        |                      |  |                          |   |  |   |       
|Year ended December 31, 2001                       |  | $                            |       |                             | $ |       |                      |  | $                        |  |  | $ |      
|Period from January 1, 2002 to February 13, 2002   |  | $                            |       |                             | $ |       |                      |  | $                        |  |  | $ |      
|Period from February 14, 2002 to December 31, 2002 |  | $                            |       |                             | $ | 39,261 | (1)                  |  | $                        |  |  | $ | 39,261
|Year ended December 31, 2003                       |  | $                            | 39,261 |                             | $ | 33,735 | (1)                  |  | $                        |  |  | $ | 72,996

---

|(1) | FAS 109 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, its more likely than not that some portion or all of the
deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



All other schedules for which provision is made in the applicable accounting regulation of
the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted.



101



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SIGNATURES



Pursuant to the
requirements of Section 13 or 15(d) of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 26th day of March 2004.



SYNIVERSE HOLDINGS, LLCBy:

/S/ RAYMOND L. LAWLESSRaymond L. Lawless Chief Financial Officer, Secretary and Manager




Pursuant to the
requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:



|                                         |  |                                                                              |  |               
|---------------------------------------- |  | ---------------------------------------------------------------------------- |  | --------------
|Signatures                               |  | Capacity                                                                     |  | Dates         
|                                         |  |                                                                             
|/s/ G. EDWARD EVANSG. Edward Evans       |  | Chief Executive Officer, President and Manager(Principal Executive Officer)  |  | March 26, 2004
|                                         |  |                                                                             
|/S/ RAYMOND L. LAWLESSRaymond L. Lawless |  | Chief Financial Officer, Secretary and Manager(Principal Accounting Officer) |  | March 26, 2004
|                                         |  |                                                                             
|/s/ DAVID A. DONNINIDavid A. Donnini     |  | Manager                                                                      |  | March 26, 2004
|                                         |  |                                                                             
|/s/ COLLIN E. ROCHECollin E. Roche       |  | Manager                                                                      |  | March 26, 2004
|                                         |  |                                                                             
|/s/ ODIE C. DONALDOdie C. Donald         |  | Manager                                                                      |  | March 26, 2004
|                                         |  |                                                                             
|/s/ TONY G. HOLCOMBETony G. Holcombe     |  | Manager                                                                      |  | March 26, 2004
|                                         |  |                                                                             
|/s/ ROBERT J. MARINORobert J. Marino     |  | Manager                                                                      |  | March 26, 2004



Supplemental
Information to be furnished With Reports Filed Pursuant to Section 15(d) of the Act by Registrants

Which have Not Registered Securities
Pursuant to Section 12 of the Act.



We have not sent, and do
not intend to send, an annual report to security holders covering our last fiscal year, nor have we sent a proxy statement, form of proxy or other proxy soliciting material to our security holders with respect to any annual meeting of security
holders.



102



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SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, on the 26th day of March 2004.



SYNIVERSE TECHONOLGIES, INC.By:

/S/ RAYMOND L. LAWLESSRaymond L. Lawless Chief Financial Officer and Director




Pursuant to the
requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:



|                                         |  |                                                                    |  |               
|---------------------------------------- |  | ------------------------------------------------------------------ |  | --------------
|Signatures                               |  | Capacity                                                           |  | Dates         
|                                         |  |                                                                   
|/s/ G. EDWARD EVANSG. Edward Evans       |  | Chief Executive Officer and Director(Principal Executive Officer)  |  | March 26, 2004
|                                         |  |                                                                   
|/S/ RAYMOND L. LAWLESSRaymond L. Lawless |  | Chief Financial Officer and Director(Principal Accounting Officer) |  | March 26, 2004
|                                         |  |                                                                   
|/s/ DAVID A. DONNINIDavid A. Donnini     |  | Director                                                           |  | March 26, 2004
|                                         |  |                                                                   
|/s/ COLLIN E. ROCHECollin E. Roche       |  | Director                                                           |  | March 26, 2004
|                                         |  |                                                                   
|/s/ ODIE C. DONALDOdie C. Donald         |  | Director                                                           |  | March 26, 2004
|                                         |  |                                                                   
|/s/ TONY G. HOLCOMBETony G. Holcombe     |  | Director                                                           |  | March 26, 2004
|                                         |  |                                                                   
|/s/ ROBERT J. MARINORobert J. Marino     |  | Director                                                           |  | March 26, 2004



Supplemental
Information to be furnished With Reports Filed Pursuant to Section 15(d) of the Act by Registrants

Which have Not Registered Securities
Pursuant to Section 12 of the Act.



We have not sent, and do
not intend to send, an annual report to security holders covering our last fiscal year, nor have we sent a proxy statement, form of proxy or other proxy soliciting material to our security holders with respect to any annual meeting of security
holders.



103



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EXHIBITS REQUIRED TO BE FILED BY ITEM 601 OF REGULATION S-K



|            |  |                                                                                                                                                                                                                                                                                                                                            
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                
|            | 
|2.1         |  | Stock Purchase Agreement, dated December 7, 2001, by and between TSI Telecommunication Holdings, Inc. and Verizon Information Services Inc.(1)                                                                                                                                                                                             
|            | 
|2.2         |  | Amended and Restated Agreement of Merger, dated December 7, 2001, as amended and restated as of January 14, 2002, by and among TSI Telecommunication Holdings, Inc., TSI Merger Sub, Inc.,
Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                    
|            | 
|2.3         |  | Asset Transfer Agreement, dated February 14, 2002, between TSI Telecommunication Services Inc. and TSI Network Services Inc.(1)                                                                                                                                                                                                            
|            | 
|3.1         |  | Restated Certificate of Incorporation of TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                            
|            | 
|*3.1.1      |  | Restated Certificate of Incorporation of Syniverse Technologies, Inc.                                                                                                                                                                                                                                                                      
|            | 
|3.2         |  | Bylaws of TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                           
|            | 
|3.3         |  | Amended and Restated Certificate of Incorporation of TSI Telecommunication Holdings, Inc.(1)                                                                                                                                                                                                                                               
|            | 
|3.4         |  | Bylaws of TSI Telecommunication Holdings, Inc.(1)                                                                                                                                                                                                                                                                                          
|            | 
|3.5         |  | Amended and Restated Certificate of Incorporation of TSI Network Services Inc. (1)                                                                                                                                                                                                                                                         
|            | 
|3.6         |  | Bylaws of TSI Network Services Inc.(1)                                                                                                                                                                                                                                                                                                     
|            | 
|3.7         |  | Certificate of Formation of TSI Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                                                                                        
|            | 
|*3.7.1      |  | Restated Certificate of Formation of Syniverse Holdings, LLC.                                                                                                                                                                                                                                                                              
|            | 
|3.8         |  | Limited Liability Company Agreement of TSI Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                                                                             
|            | 
|3.9         |  | Certificate of Incorporation of TSI Finance Inc.(1)                                                                                                                                                                                                                                                                                        
|            | 
|3.10        |  | Bylaws of TSI Finance Inc.(1)                                                                                                                                                                                                                                                                                                              
|            | 
|3.11        |  | Amendment No. 1 to Amended and Restated Certificate of Incorporation of TSI Telecommunication Network Services, Inc.(6)                                                                                                                                                                                                                    
|            | 
|3.12        |  | Limited Liability Company Operating Agreement of TSI Brience, LLC.(6)                                                                                                                                                                                                                                                                      
|            | 
|4.1         |  | Purchase Agreement, dated February 5, 2002, among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc., TSI Finance Inc. and
Lehman Brothers Inc.(1)                                                                                                                         
|            | 
|4.2         |  | Indenture, dated February 14, 2002, among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc., TSI Finance Inc. and The Bank of
New York, as trustee.(1)                                                                                                                    
|            | 
|4.3         |  | Exchange and Registration Rights Agreement, dated March 27, 2001, by and among TSI Merger Sub, Inc., TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks
Inc., TSI Finance Inc. and Lehman Brothers Inc.(1)                                                                                            
|            | 
|4.4         |  | Notation of Guarantee, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Networks Inc. and TSI Finance Inc.(1)                                                                                                                                                                 
|            | 
|4.5         |  | Form of Rule 144A Global Note.(1)                                                                                                                                                                                                                                                                                                          
|            | 
|4.6         |  | Form of Regulation S Global Note.(1)                                                                                                                                                                                                                                                                                                       
|            | 
|4.7         |  | Form of Exchange Note.(1)                                                                                                                                                                                                                                                                                                                  
|            | 
|10.1        |  | Credit Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, Inc., TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc., as Borrower, the several Lenders from time to
time parties thereto, Lehman Brothers Inc., as Lead Arranger and Book Manager and Lehman Commercial Paper Inc., as Administrative Agent.(1)



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|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                          
|            | 
|10.2        |  | Guarantee and Collateral Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Telecommunication Services Inc. and certain
of their respective Subsidiaries, and Lehman Commercial Paper Inc., as Administrative Agent.(1)                                                                                                                                        
|            | 
|10.3        |  | Intellectual Property Security Agreement, dated February 14, 2002, between TSI Telecommunication Services Inc. and Lehman Commercial Paper Inc., as administrative agent.(1)                                                                                                                                                                                                                                                         
|            | 
|10.4        |  | Guaranty of Wireless Revenue, dated February 14, 2002, between Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                          
|            | 
|10.5       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and G. Edward Evans.(1) as amended by that certain Amendment to Senior
Management Agreement, dated April 1, 2003, by and among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and G. Edward Evans.(2)                                                                                
|            | 
|10.6       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Raymond L. Lawless.(1)                                                                                                                                                                                                                                                                                     
|            | 
|10.7       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Michael O Brien.(1)                                                                                                                                                                                                                                                                                       
|            | 
|10.8       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Paul A. Wilcock.(1)                                                                                                                                                                                                                                                                                        
|            | 
|10.9       |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Wayne Nelson.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.10      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Robert Clark.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.11      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Douglas Meyn.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.12      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Gilbert Mosher.(1)                                                                                                                                                                                                                                                                                         
|            | 
|10.13      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Christine Wilson Strom.(1)                                                                                                                                                                                                                                                                                 
|            | 
|10.14      |  | Senior Management Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Robert Garcia, Jr.(1)                                                                                                                                                                                                                                                                                      
|            | 
|10.15      |  | Consulting Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, TSI Merger Sub, Inc. and Michael Hartman.(1)                                                                                                                                                                                                                                                                                               
|            | 
|10.16       |  | Securityholders Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest, L.P., G. Edward Evans, Raymond L.
Lawless, Robert Clark, Robert Garcia, Jr., Douglas Meyn, Gilbert Mosher, Wayne Nelson, Michael OBrien, Christine Wilson Strom, Paul Wilcock, Rajesh Shah, Christian Schiller, Arnis Kins, John Kins and Snowlake Investment Pte
Ltd.(1)
|            | 
|10.17       |  | Unit Purchase Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P. and GTCR Co-Invest, L.P.(1)                                                                                                                                                                                                                                                                  
|            | 
|10.18       |  | Stock Purchase Agreement, dated February 14, 2002, by and between TSI Communication Holdings, Inc. and TSI Communication Holdings, LLC.(1)                                                                                                                                                                                                                                                                                           
|            | 
|10.19       |  | Purchase Agreement, dated February 14, 2002, between TSI Telecommunication Holdings, LLC and Snowlake Investment Pte Ltd.(1)                                                                                                                                                                                                                                                                                                         
|            | 
|10.20       |  | Co-Interest Purchase Agreement, dated February 14, 2002, between TSI Telecommunication Holdings, LLC and Project Networks Partners LLC.(1)                                                                                                                                                                                                                                                                                           



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|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  
|----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                      
|            | 
|10.21       |  | Purchase Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, Christian Schiller, Arnis Kins and John Kins.(1)                                                                                                                                                                                                                                                                                         
|            | 
|10.22       |  | Professional Services Agreement, dated February 14, 2002, between GTCR Golder Rauner, L.L.C. and TSI Merger Sub, Inc.(1)                                                                                                                                                                                                                                                                                                         
|            | 
|10.23       |  | Transition Services Agreement, dated February 14, 2002, between Verizon Information Services Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                                     
|            | 
|10.24       |  | Registration Agreement, dated February 14, 2002, among TSI Telecommunication Holdings, LLC, GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest L.P., G. Edward Evans, Raymond L.
Lawless, Robert Clark, Robert Garcia, Jr., Douglas Meyn, Gilbert Mosher, Wayne Nelson, Michael OBrien, Christine Wilson Strom, Paul Wilcock, Rajesh Shah, Christian Schiller, Arnis Kins, John Kins and Snowlake Investment Pte
Ltd.(1)
|            | 
|10.25       |  | Inducement Agreement, dated February 14, 2002, among GTCR Fund VII, L.P., GTCR Fund VII/A, L.P., GTCR Co-Invest, L.P., Snowlake Investment Pte Ltd, GTCR Capital Partners, L.P. and TSI
Telecommunication Holdings, LLC.(1)                                                                                                                                                                                                      
|            | 
|10.26       |  | Termination Agreement and Release (Verizon Data Services), dated February 14, 2002, between Verizon Data Services, Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                               
|            | 
|10.27       |  | Intellectual Property Agreement, dated February 14, 2002, among Verizon Information Services, Inc., Verizon Communications Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                       
|            | 
|10.28       |  | Intellectual Property Letter Agreement, dated February 14, 2002, among Verizon Information Services, Inc., TSI Telecommunication Services Inc. and TSI Telecommunication Holdings,
Inc.(1)                                                                                                                                                                                                                                       
|            | 
|10.29       |  | Mainframe Computing Services Agreement, dated February 14, 2002, between Verizon Information Technologies Inc. and TSI Telecommunication Services Inc.(1)                                                                                                                                                                                                                                                                        
|            | 
|10.30       |  | Distributed Processing Services Agreement, dated February 14, 2002, by and between Verizon Information Technologies Inc. and TSI Telecommunications Services Inc.(1)                                                                                                                                                                                                                                                             
|            | 
|10.31      |  | TSI Telecommunication Holdings, Inc. Founders Stock Option Plan.(1)                                                                                                                                                                                                                                                                                                                                                             
|            | 
|10.32      |  | Form of Nonqualified Stock Option Plan Stock Option Agreement for Management.(1)                                                                                                                                                                                                                                                                                                                                                 
|            | 
|10.33      |  | Form of Nonqualified Stock Option Agreement for Non-Management.(1)                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.34      |  | TSI Telecommunication Holdings, Inc. Non-employee Directors Stock Option Plan.(9)                                                                                                                                                                                                                                                                                                                                                
|            | 
|10.35      |  | Form of Nonqualified Stock Option Agreement for Non-employee Directors.(9)                                                                                                                                                                                                                                                                                                                                                       
|            | 
|10.36      |  | Senior Management Agreement, dated June 3, 2002 among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Charles A. Drexler.(9)                                                                                                                                                                                                                                                                        
|            | 
|10.37      |  | Senior Management Agreement, dated February 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Linda Hermansen.(3)                                                                                                                                                                                                                                                                     
|            | 
|10.38      |  | Senior Management Agreement, dated February 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Gilbert Mosher.(3)                                                                                                                                                                                                                                                                      
|            | 
|10.39      |  | Senior Management Agreement, dated May 14, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and Eugene Bergen Henegouwen.(2)                                                                                                                                                                                                                                                                 
|            | 
|10.40      |  | Senior Management Agreement, dated August 14, 2003, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc, and Paul Corrao.(7)                                                                                                                                                                                                                                                                     
|            | 
|10.41       |  | First Amendment to Credit Agreement, dated as of September 25, 2003, by and among TSI Telecommunication Holdings, LLC, TSI Telecommunication Holdings, Inc., TSI Telecommunication Services
Inc., the lenders signatory thereto, and Lehman Commercial Paper Inc.(4)                                                                                                                                                             



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|            |  |                                                                                                                                                                                                                                   
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                       
|            | 
|10.42       |  | Agreement and Plan of Merger, dated as of July 15, 2003, by and among TSI Telecommunication Network Services Inc., TSI Brience, LLC, Brience, Inc., and the Seller Parties named
therein.(5)                                      
|            | 
|10.43       |  | Exchange Agreement, dates as of July 23, 2003, by and among the Parent and the persons listed on the signature page thereto under the heading Exchanging
Parities.(5)                                                           
|            | 
|10.44       |  | Contribution Agreement, dates as of July 23, 2003, by and among GTCR Fund VII, L.P., GTCR Co-Invest, L.P., and TSI Telecommunication Holdings, LLC.(5)                                                                            
|            | 
|10.45       |  | Second Amendment to Credit Agreement, dated as of March 11, 2004, by and among Syniverse Holdings, LLC, Syniverse Holdings, Inc., Syniverse Technologies, Inc., the lenders signatory thereto,
and Lehman Commercial Paper Inc.(8)
|            | 
|*10.46      |  | Agreement relating to the sale and purchase of the entire issued share capital of Softwright Holdings Limited, dated as of December 19, 2003, by and among TSI Telecommunication Services Inc.
and the Vendors named therein.     
|            | 
|*10.47     |  | Senior Management Agreement, dated December 8, 2003, among TSI Telecommunication Holdings, LLC, TSI Telecommunication Services Inc. and F. Terry Kremian.                                                                         
|            | 
|*12.1       |  | Computation of ratio of earnings to fixed charges.                                                                                                                                                                                
|            | 
|*14.1       |  | Code of Ethics of Syniverse Technologies, Inc.                                                                                                                                                                                    
|            | 
|*21.1       |  | Subsidiaries of Syniverse Holdings, LLC.                                                                                                                                                                                          
|            | 
|*31.1       |  | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer.                                                                                                                          
|            | 
|*31.2       |  | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by the Chief Financial Officer.                                                                                                                          
|            | 
|*32.1       |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) by the Chief Executive Officer.                                                                                                          
|            | 
|*32.2       |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) by the Chief Financial Officer.                                                                                                          

---

|(1) | Incorporated by reference to the Registrants Registration Statement on Form S-4 (Registration No. 333-88168).
|--- | --------------------------------------------------------------------------------------------------------------

|(2) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2003 (File No.
333-88168-1).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (File No.
333-88168-1).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K dated September 25, 2003 (File No. 333-88168-1).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K dated July 23, 2003 (File No. 33-88168-1).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(6) | Incorporated by reference to the Registrants Post Effective Amendment No. 2 (Registration No. 333-99293).
|--- | ----------------------------------------------------------------------------------------------------------

|(7) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2003 (File
No. 333-88168-1).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(8) | Incorporated by reference to Syniverse Holdings, LLC and Syniverse Technologies, Inc.s Current Report on Form 8-K filed on March 16, 2004 (File No. 333-88168).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(9) | Incorporated by reference to the Registrants Registration Statement on Form S-1 filed September 6, 2002 (Registration No. 333-99293).
|--- | --------------------------------------------------------------------------------------------------------------------------------------

|* | Filed herewith.
|- | ---------------

| | Compensatory plan or agreement.
|- | -------------------------------



107