Document:

Unassociated Document

    MASTER
      AMENDMENT TO

     

    POOLING
      AND SERVICING AGREEMENTS

     

    Dated
      as
      of July 15, 2005

     

    Among

     

    FIRST
      HORIZON ASSET SECURITIES INC., as Depositor,

    FIRST
      HORIZON HOME LOAN CORPORATION, as Master Servicer, and

     

    THE
      BANK
      OF NEW YORK, as Trustee

     

    With
      respect to

     

    POOLING
      AND SERVICING AGREEMENTS

     

    relating
      to

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2002-8

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2002-8

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2003-9

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2003-9

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2003-10

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2003-10

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2004-4

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-4 

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2004-5

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-5

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2004-FA1

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-FA1

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2004-6

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-6 

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2004-7

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-7

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2004-FA2

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2004-FA2

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2005-FA1

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-FA1

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2005-FA2

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-FA2

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2005-2

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-2 

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2005-FA3

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-FA3 

     

    FIRST
      HORIZON MORTGAGE PASS-THROUGH TRUST 2005-3

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-3 

     

    FIRST
      HORIZON ALTERNATIVE MORTGAGE SECURITIES TRUST 2005-FA4

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2005-FA4

     

    

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    

    THIS
      MASTER AMENDMENT TO POOLING AND SERVICING AGREEMENTS dated as of July 15, 2005
      (this “Master Amendment”), is executed among FIRST HORIZON ASSET SECURITIES
      INC., a Delaware corporation, as depositor (the “Depositor”), FIRST HORIZON HOME
      LOAN CORPORATION, a Kansas corporation as master servicer (the “Master
      Servicer”), and THE BANK OF NEW YORK, a banking corporation organized under the
      laws of the State of New York, as trustee (the “Trustee”).

     

    R
      E C
      I T A L S :

     

    A.  The
      Depositor, the Master Servicer, and the Trustee are parties to the Agreements
      (as defined below).

     

    B.  The
      Depositor, the Master Servicer, and the Trustee, desire to amend the Agreements,
      among other things, to restate the
      definition of the Private Certificates in each of the Agreements.

     

    C.  The
      amendment contemplated hereby, with the consent of the holders of the
      Certificates (as defined below), is permitted under Section 11.1 of the
      Agreements.

     

    D.  The
      Trustee has received an Opinion of Counsel from Andrews Kurth LLP in
      substantially the form attached hereto as ANNEX
      A,
      to the
      effect that this Master Amendment will not cause the imposition of any tax
      on
      any Certificateholders or any REMIC created under the Agreements or cause any
      REMIC to fail to qualify as a REMIC at any time that any Certificates are
      outstanding.

     

    E. The
      holder of the Certificates has executed a Consent of Sole Certificateholder
      to
      Master Amendment to Pooling and Servicing Agreements in substantially the form
      attached hereto as ANNEX
      B
      to
      consent to and adopt this Master Amendment.

    

    W
      I T
      N E S E T H T H A T

     

    In
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

     

    ARTICLE
      I

    DEFINITIONS

     

    Whenever
      used in this Master Amendment, the following words and phrases, unless the
      context otherwise requires, shall have the following meanings:

     

    2002-8
      PSA: The Pooling and Servicing Agreement, dated as of November 1, 2002, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2002-8 and the Mortgage Pass-Through
      Certificates, Series 2002-8.

     

    2003-9
      PSA: The Pooling and Servicing Agreement, dated as of September 1, 2003, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2003-9 and the Mortgage Pass-Through
      Certificates, Series 2003-9.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    2003-10
      PSA: The Pooling and Servicing Agreement, dated as of November 1, 2003, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2003-10 and the Mortgage Pass-Through
      Certificates, Series 2003-10.

     

    2004-4
      PSA: The Pooling and Servicing Agreement, dated as of May 1, 2004, by and among
      the Depositor, the Master Servicer and the Trustee, as related to the First
      Horizon Mortgage Pass-Through Trust 2004-4 and the Mortgage Pass-Through
      Certificates, Series 2004-4.

     

    2004-5
      PSA: The Pooling and Servicing Agreement, dated as of September 1, 2003, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2004-5 and the Mortgage Pass-Through
      Certificates, Series 2004-5.

     

    2004-6
      PSA: The Pooling and Servicing Agreement, dated as of September 1, 2004, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2004-6 and the Mortgage Pass-Through
      Certificates, Series 2004-6

     

    2004-7
      PSA: The Pooling and Servicing Agreement, dated as of November 1, 2004, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2004-7 and the Mortgage Pass-Through
      Certificates, Series 2004-7.

     

    2004-FA1
      PSA: The Pooling and Servicing Agreement, dated as of August 1, 2004, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2004-FA1 and the Mortgage
      Pass-Through Certificates, Series 2004-FA1.

     

    2004-FA2
      PSA: The Pooling and Servicing Agreement, dated as of November 1, 2004, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2004-FA2 and the Mortgage
      Pass-Through Certificates, Series 2004-FA2.

     

    2005-2
      PSA: The Pooling and Servicing Agreement, dated as of March 1, 2005, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2005-2 and the Mortgage Pass-Through
      Certificates, Series 2005-2.

     

    2005-3
      PSA: The Pooling and Servicing Agreement, dated as of April 1, 2005, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Mortgage Pass-Through Trust 2005-3 and the Mortgage Pass-Through
      Certificates, Series 2005-3.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    2005-FA1
      PSA: The Pooling and Servicing Agreement, dated as of January 1, 2005, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2005-FA1 and the Mortgage
      Pass-Through Certificates, Series 2005-FA1.

     

    2005-FA2
      PSA: The Pooling and Servicing Agreement, dated as of February 1, 2005, by
      and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2005-FA2 and the Mortgage
      Pass-Through Certificates, Series 2005-FA2.

     

    2005-FA3
      PSA: The Pooling and Servicing Agreement, dated as of March 1, 2005, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2005-FA3 and the Mortgage
      Pass-Through Certificates, Series 2005-FA3.

     

    2005-FA4
      PSA: The Pooling and Servicing Agreement, dated as of April 1, 2005, by and
      among the Depositor, the Master Servicer and the Trustee, as related to the
      First Horizon Alternative Mortgage Securities Trust 2005-FA4 and the Mortgage
      Pass-Through Certificates, Series 2005-FA4.

     

    Agreements:
      Collectively, the 2002-8 PSA, 2003-9 PSA, 2003-10 PSA, 2004-4 PSA, 2004-5 PSA,
      2004-6 PSA, 2004-7 PSA, 2004-FA1 PSA, 2004-FA2 PSA, 2005-2 PSA, 2005-3 PSA,
      2005-FA1 PSA, 2005-FA2 PSA, 2005-FA3 PSA, and 2005-FA4 PSA.

     

    Certificates:
      The collective certificates listed on SCHEDULE
      A
      attached
      hereto.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    ARTICLE
      II  

    AMENDMENTS
      TO AGREEMENTS

     

    The
      following defined term under the Preliminary Statement of each of the
      Agreements, other than the 2004-4 PSA, is hereby amended and restated in its
      entirety for all purposes of such Agreements to read as follows:

     

    
      	
               

              Private
                Certificates

               

            	
               

              The
                Principal Only Certificates and the Class B-4, Class B-5 and Class
                B-6
                Certificates.

               

            

    

     

     

    The
      following defined term under the Preliminary Statement of the 2004-4 PSA is
      hereby amended and restated in its entirety for all purposes of the 2004-4
      PSA
      to read as follows:

     

    
      	
               

              Private
                Certificates

               

            	
               

              The
                Class I-A-PO, Class B-4, Class B-5 and Class B-6
                Certificates.

               

            

    

    

     

    The
      second full paragraph of Section 5.2(b) of each of the 2003-10 PSA, 2004-4
      PSA,
      2004-5 PSA, 2004-6 PSA, 2004-7 PSA, 2004-FA1 PSA, 2004-FA2 PSA, 2005-2 PSA,
      2005-3 PSA, 2005-FA1 PSA, 2005-FA2 PSA, 2005-FA3 PSA, and 2005-FA4 PSA is hereby
      deleted in its entirety for all purposes of such Agreements.

     

    The
      second full paragraph of Exhibit A-2 of each of the Agreements is hereby deleted
      in its entirety and replaced with the following language for all purposes of
      such Agreements:

     

    THIS
      CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
      OF
      1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF
      THE UNITED STATES (“BLUE SKY LAWS”), AND SUCH CERTIFICATE MAY NOT BE OFFERED,
      RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON WHOM THE SELLER
      REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
      RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS
      OF
      RULE 144A, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE
      144
      UNDER THE SECURITIES ACT (IF AVAILABLE) OR (C) TO AN INSTITUTIONAL ACCREDITED
      INVESTOR AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER
      THE
      SECURITIES ACT IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
      THE
      SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE BLUE SKY LAWS.
      NO
      REPRESENTATION IS MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY
      RULE
      144 FOR RESALES OF THIS CERTIFICATE.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    ARTICLE
      III

    MISCELLANEOUS

     

    Section
      3.1  Ratification.

     

    The
      terms
      and provisions set forth in this Master Amendment shall modify and supersede
      all
      inconsistent terms and provisions set forth in the Agreements, and, except
      as
      expressly modified and superseded by this Master Amendment, the terms and
      provisions of the Agreements are ratified and confirmed and shall continue
      in
      full force and effect. Each Agreement as so modified by this Master Amendment
      shall be read, taken and construed as one and the same instrument with the
      Master Amendment.

     

    Section
      3.2  Reference
      to Agreements; Capitalized Terms.

     

    The
      Agreements and all other agreements, documents or instruments now or hereafter
      executed and delivered pursuant to the terms hereof or pursuant to the terms
      of
      the Agreements as amended hereby, are hereby amended so that any reference
      in
      such agreements, documents, or instruments to any of the Agreements shall mean
      a
      reference to the applicable Agreement as amended hereby. All initially
      capitalized terms used and not otherwise defined herein shall have the meaning
      assigned to such terms in the applicable Agreement.

     

    Section
      3.3  Successors
      and Assigns.

     

    This
      Master Amendment is binding upon and shall inure to the benefit of the
      Depositor, the Master Servicer and the Trustee and their respective successors
      and assigns.

     

    Section
      3.4  Governing
      Law.

     

    THIS
      MASTER AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
      SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
      TO
      BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES
      OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
      ACCORDANCE WITH SUCH LAWS.

     

    Section
      3.5  Counterparts.

     

    This
      Master Amendment may be executed in one or more counterparts, each of which
      when
      so executed shall be an original, but such counterparts when taken together
      shall constitute one and the same instrument.

     

    Section
      3.6  Trustee.

     

    The
      Trustee is entering into this Master Amendment at the request and direction
      of
      the Depositor and the Master Servicer. This Master Amendment is not intended
      to
      benefit or adversely affect the Trustee. The Trustee does not pass upon the
      benefit or adverse affect of this Master Amendment on any other party to the
      Agreements or Certificateholders and this Master Amendment is entered into
      by
      the Trustee subject to the terms of Section 11.1 of the Agreements.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    Section
      3.7  Effective
      Date.

     

    This
      Master Amendment shall be effective as of July 15, 2005.

     

    [remainder
      of page intentionally left blank]

    
 

    
      
         

      

      
        -7-

        
          

        

      

      
         

        
        

      

    

    

    IN
      WITNESS WHEREOF, the Depositor, the Trustee and the Master Servicer have caused
      their names to be signed hereto by their respective officers thereunto duly
      authorized as of the day and year first above written.

     

    FIRST
      HORIZON ASSET SECURITIES INC.,

    as
      Depositor

    

    

    By: /s/
      Alfred Chang    

    Alfred
      Chang

    Vice
      President

    

    THE
      BANK
      OF NEW YORK,

    not
      in
      its individual capacity, but solely as Trustee

    

    

    By:  /s/
      Diane Pickett    

    Diane
      Pickett,

    Vice
      President

    

    

    FIRST
      HORIZON HOME LOAN CORPORATION,

    as
      Master
      Servicer 

    

    

    By:  /s/
      Alfred Chang    

      Alfred
      Chang

    Vice
      President

    
      
         

      

      
        -8-

        
          

        

      

      
         

        
        

      

    

    SCHEDULE
      A

     

    Certificates:
      The following mortgage pass-through certificates, collectively: 

     

    	(i)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2002-8
              PSA;

          

     

    	(ii)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2003-9
              PSA;

          

     

    	(iii)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2003-10
              PSA;

          

     

    	(iv)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2004-4
              PSA;

          

     

    	(v)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2004-5
              PSA;

          

     

    	(vi)  	
            The
              Class I-A-PO, Class II-A-PO and Class III-A-PO Certificates issued
              pursuant to the 2004-FA1 PSA;

          

     

    	(vii)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2004-6
              PSA;

          

     

    	(viii)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2004-7
              PSA;

          

     

    	(ix)  	
            The
              Class I-A-PO, Class II-A-PO and Class III-A-PO Certificates issued
              pursuant to the 2004-FA2 PSA;

          

     

    	(x)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2005-FA1 PSA;

          

     

    	(xi)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2005-FA2 PSA;

          

     

    	(xii)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2005-2
              PSA;

          

     

    	(xiii)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2005-FA3 PSA;

          

     

    	(xiv)  	
            The
              Class I-A-PO Certificates issued pursuant to the 2005-3 PSA;
              and

          

     

    	(xv)  	
            The
              Class I-A-PO and Class II-A-PO Certificates issued pursuant to the
              2005-FA4 PSA.

          

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    ANNEX
      A

     

    (begins
      on next page)

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEX
      B

     

    (begins
      on next page)EXHIBIT
        10.1

      

      

      
        	 

      

      

      
        	
                 

                Contact:

                David
                  Zigdon

                CFO

                (972)
                  3-6455004

                davidz@radcom.com

              	
                 

                 

                Adam
                  Rosen

                RK
                  Equity Partners

                (646)
                  536-3865

                arosen@rkequity.com

              

      

      FOR
        IMMEDIATE RELEASE

      

      

      RADCOM
        REPORTS Q2 2005 RESULTS

      

      -
        Another
        Profitable Quarter With 46% YOY Revenue Growth -

      - Guidance:
        Continued Strong Growth In Q3 2005 -

      

      TEL-AVIV,
        Israel—July 25, 2005-- RADCOM Ltd. (RADCOM) (NASDAQ: RDCM) today announced
        unaudited financial results for the second quarter and six months ended June
        30,
        2005. 

      

      Financial
        Results

      Revenues
        for the second quarter of 2005 were $4,837,000, an increase of 46% compared
        to
        $3,318,000 in the second quarter of 2004. Net income for the second quarter
        of
        2005 was $103,000, or $0.01 per ordinary share, compared to a net loss of
        ($675,000), or ($0.05) per ordinary share, for the second quarter of 2004.
        

      

      Revenues
        for the first half of 2005 were $9,854,000, an increase of 44% compared to
        $6,822,000 for the first half of 2004. Net income for the first six months
        of
        2005 was $237,000, or $0.02 per ordinary share, compared to a net loss of
        ($1,251,000), or ($0.10) per ordinary share, for the first six months of
        2004.

      

      Comments
        of Management

      Commenting
        on the results, Arnon Toussia-Cohen, President and CEO of RADCOM, said, “As
        projected, the second quarter was another profitable period of strong
        year-over-year revenue growth, a demonstration of our success in penetrating
        cellular and VoIP service providers as well as steady demand from equipment
        vendors. We have been working on a number of large multi-quarter deals with
        top-tier service providers in both Europe and the U.S., and have visibility
        for
        a sequential increase in revenues and profits during the second half of the
        year. 

      

      “We
        are
        pleased with the pace of development of our US business, and our team in
        China
        is working according to schedule. In parallel, to extend our market leadership,
        we are working on new products that leverage our unique product platform
        to
        address the test and monitoring needs of emerging triple-play and
        next-generation convergence equipment vendors and service providers. Overall,
        we
        are operating on track according to our plans and are optimistic looking
        forward.”

      

      

      Guidance

      The
        following statement is forward-looking in nature, and actual results may
        differ
        materially. See below under “Risks Regarding Forward Looking
        Statements”.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Revenues
        for
        the third quarter of 2005 are expected to be between $5.3 million and $5.8
        million. 

       

      A
        teleconference to discuss the results will be held today, July 25th, at 9:00
        a.m. Eastern Daylight Time. To participate, please call 1-877-209-0397 from
        the
        U.S., or +1-612-332-1025 from international locations, approximately five
        minutes before the call is scheduled to begin. A replay of the call will
        be
        available from 10:45 AM Eastern Time on July 25th until midnight August 1st.
        To
        access the replay, please call 1-800-475-6701 from the U.S., or +1-320-365-3844
        from international locations, and use the access code 788719.

       

      The
        conference call can also be accessed online at www.radcom.com.

      

      ###

      

       

      RADCOM
        develops, manufactures, markets and supports innovative network test and
        service
        monitoring solutions for communications service providers and equipment vendors.
        The company specializes in Next Generation Cellular as well as Voice, Data
        and
        Video over IP networks. Its solutions are used in the development and
        installation of network equipment and in the maintenance of operational
        networks. The company’s products facilitate fault management, network service
        performance monitoring and analysis, troubleshooting and pre-mediation. For
        more
        information, please visit www.RADCOM.com.

       

      Risks
        Regarding Forward Looking Statements

      Certain
        statements made herein that use the words ``estimate,'' ``project,'' ``intend,''
        ``expect”, ''believe`` and similar expressions are intended to identify
        forward-looking statements within the meaning of the Private Securities
        Litigation Reform Act of 1995. These forward-looking statements involve known
        and unknown risks and uncertainties which could cause the actual results,
        performance or achievements of the Company to be materially different from
        those
        which may be expressed or implied by such statements, including, among others,
        changes in general economic and business conditions and specifically, decline
        in
        demand to the Company's products, inability to timely develop and introduce
        new
        technologies, products and applications and loss of market share and pressure
        on
        prices resulting from competition. For additional information regarding these
        and other risks and uncertainties associated with the Company's business,
        reference is made to the Company's reports filed from time to time with the
        Securities and Exchange Commission. The Company does not undertake to update
        forward-looking statements. 

       

      (Financial
        tables follow)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          	
                  RADCOM
                    REPORTS/3

                   

                  RADCOM
                    Ltd.

                
	
                  Consolidated
                    Statements of Operations

                
	
                  (1000's
                    of U.S. dollars, except per share
                    data)

                

        

        
        

        
          	 	 	
                  Three
                    months ended 

                  June
                    30,

                	 	
                  Six
                    months ended 

                  June
                    30,

                	 
	 	 	
                  2005

                	 	
                  2004

                	 	
                  2005

                	 	
                  2004

                	 
	 	 	
                  (unaudited)

                	 	
                  (unaudited)

                	 	
                  (unaudited)

                	 	
                  (unaudited)

                	 
	
                  Sales
                    

                	 	
                  $

                	
                  4,837

                	 	
                  $

                	
                  3,318

                	 	
                  $

                	
                  9,854

                	 	
                  $

                	
                  6,822

                	 
	
                  Cost
                    of sales

                	 	 	
                  1,571
                    

                	 	 	
                  1,077
                    

                	 	 	
                  3,192

                	 	 	
                  2,221

                	 
	
                  Gross
                    profit 

                	 	 	
                  3,266

                	 	 	
                  2,241
                    

                	 	 	
                  6,662

                	 	 	
                  4,601

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  Research
                    and development, gross

                	 	 	
                  1,416
                    

                	 	 	
                  1,255
                    

                	 	 	
                  2,831
                    

                	 	 	
                  2,501
                    

                	 
	
                  Less
                    - royalty-bearing participation

                	 	 	
                  489
                    

                	 	 	
                  402
                    

                	 	 	
                  884
                    

                	 	 	
                  902

                	 
	
                  Research
                    and development, net

                	 	 	
                  927

                	 	 	
                  853
                    

                	 	 	
                  1,947
                    

                	 	 	
                  1,599
                    

                	 
	
                  Sales
                    and marketing 

                	 	 	
                  1,870
                    

                	 	 	
                  1,662
                    

                	 	 	
                  3,736
                    

                	 	 	
                  3,406
                    

                	 
	
                  General
                    and administrative

                	 	 	
                  422
                    

                	 	 	
                  419
                    

                	 	 	
                  833
                    

                	 	 	
                  871
                    

                	 
	
                  Total
                    operating expenses

                	 	 	
                  3,219
                    

                	 	 	
                  2,934
                    

                	 	 	
                  6,516
                    

                	 	 	
                  5,876
                    

                	 
	
                  Operating
                    income (loss)

                	 	 	
                  47

                	 	 	
                  (693

                	
                  )

                	 	
                  146

                	 	 	
                  (1,275

                	
                  )

                
	
                  Financing
                    income, net

                	 	 	
                  56
                    

                	 	 	
                  18
                    

                	 	 	
                  91
                    

                	 	 	
                  24
                    

                	 
	
                  Net
                    income (loss)

                	 	 	
                  103

                	 	 	
                  (675

                	
                  )

                	 	
                  237

                	 	 	
                  (1,251

                	
                  )

                
	
                  Basic
                    net earnings (loss) per ordinary share

                	 	
                  $

                	
                  0.01

                	 	
                  $

                	
                  (0.05

                	
                  )

                	
                  $

                	
                  0.02

                	 	
                  $

                	
                  (0.10

                	
                  )

                
	
                  Diluted
                    net earnings (loss) per ordinary share

                	 	
                  $

                	
                  0.01

                	 	
                  $

                	
                  (0.05

                	
                  )

                	
                  $

                	
                  0.02

                	 	
                  $

                	
                  (0.10

                	
                  )

                
	
                  Weighted
                    average number of 

                  ordinary
                    shares used in 

                  computing
                    basic net earnings 

                  (loss)
                    per ordinary share

                	 	 	
                  14,792,288

                	 	 	
                  14,395,338

                	 	 	
                  14,540,644
                    

                	 	 	
                  12,492,464
                    

                	 
	
                  Weighted
                    average number of 

                  ordinary
                    shares used in 

                  computing
                    diluted net earnings 

                  (loss)
                    per ordinary share

                	 	 	
                  16,069,930

                	 	 	
                  14,395,338

                	 	 	
                  16,152,875

                	 	 	
                  12,492,464

                	 

        

      

      

      (Additional
        table to follow)

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RADCOM
        REPORTS/4

      
        
          	
                  RADCOM
                    Ltd.

                  Consolidated
                    Balance Sheets

                  (1000's
                    of U.S. dollars) 

                

        

         

        
          	 	 	
                  As
                    of

                	 	
                  As
                    of

                	 
	 	 	
                  June
                    30, 2005

                	 	
                  December
                    31, 2004

                	 
	
                  Current
                    Assets

                	 	
                  (unaudited)

                	 	
                  (unaudited)

                	 
	
                  Cash
                    and cash equivalents 

                	 	 	
                  7,560

                	 	 	
                  6,558

                	 
	
                  Marketable
                    securities

                	 	 	
                  1,994

                	 	 	
                  1,992

                	 
	
                  Trade
                    receivables, net 

                	 	 	
                  5,088
                    

                	 	 	
                  5,341

                	 
	
                  Inventories
                    and inventory prepayments 

                	 	 	
                  2,361
                    

                	 	 	
                  2,400
                    

                	 
	
                  Other
                    current assets 

                	 	 	
                  923
                    

                	 	 	
                  880
                    

                	 
	
                  Total
                    Current Assets

                	 	 	
                  17,926
                    

                	 	 	
                  17,171
                    

                	 
	 	 	 	 	 	 	 	 
	
                  Assets
                    held for severance benefits

                	 	 	
                  1,825

                	 	 	
                  1,784

                	 
	
                   

                	 	 	 	 	 	 	 
	
                  Property
                    and equipment, net

                	 	 	
                  1,172

                	 	 	
                  1,174

                	 
	
                   

                	 	 	 	 	 	 	 
	
                  Total
                    Assets

                	 	 	
                  20,923

                	 	 	
                  20,129

                	 
	 	 	 	
                	 	 	
                	 
	
                  Liabilities
                    and Shareholders' Equity

                	 	 	 	 	 	 	 
	
                  Current
                    Liabilities 

                	 	 	 	 	 	 	 
	
                  Trade
                    payables 

                	 	 	
                  1,754

                	 	 	
                  2,027

                	 
	
                  Current
                    deferred revenue

                	 	 	
                  1,156

                	 	 	
                  889

                	 
	
                  Other
                    payables and accrued expenses 

                	 	 	
                  3,675

                	 	 	
                  4,204

                	 
	
                  Total
                    Current Liabilities

                	 	 	
                  6,585

                	 	 	
                  7,120

                	 
	 	 	 	 	 	 	 	 
	
                  Long-Term
                    Liabilities 

                	 	 	 	 	 	 	 
	
                  Long-term
                    deferred revenue

                	 	 	
                  964
                    

                	 	 	
                  583
                    

                	 
	
                   Liability
                    for employees’ severance pay benefits

                	 	 	
                  2,439

                	 	 	
                  2,402

                	 
	
                  Total
                    Long-Term Liabilities

                	 	 	
                  3,403

                	 	 	
                  2,985

                	 
	 	 	 	 	 	 	 	 
	
                  Total
                    Liabilities

                	 	 	
                  9,988

                	 	 	
                  10,105

                	 
	 	 	 	 	 	 	 	 
	
                  Shareholders'
                    Equity 

                	 	 	 	 	 	 	 
	
                  Share
                    capital 

                	 	 	
                  105

                	 	 	
                  101

                	 
	
                  Additional
                    paid-in capital

                	 	 	
                  44,366

                	 	 	
                  43,698

                	 
	
                  Accumulated
                    other comprehensive loss

                	 	 	
                  (11

                	
                  )

                	 	
                  (13

                	
                  )

                
	
                  Accumulated
                    deficit

                	 	 	
                  (33,525

                	
                  )

                	 	
                  (33,762

                	
                  )

                
	
                  Total
                    Shareholders' Equity

                	 	 	
                  10,935
                    

                	 	 	
                  10,024

                	 
	 	 	 	 	 	 	 	 
	
                  Total
                    Liabilities and Shareholders' Equity

                	 	 	
                  20,923

                	 	 	
                  20,129

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]