NEWS RELEASE

First quarter 2011 results:

Total revenues were $183.1 million.

Non-GAAP operating income was $33.0 million, or 18.0% of total revenues and GAAP operating income was $24.1 million, or 13.2% of total revenues.

Non-GAAP earnings per diluted share (EPS) was $0.54 and GAAP EPS was $0.35.

Cash flows from operations for the quarter were negative ($1.9) million, due to the timing of certain payments anticipated in the first quarter, including a negative impact of $20 million as a result of a change in the monthly invoice timing for DISH Network, which was included as part of its renewal terms effective this quarter.

Revenues

Non-GAAP Results:

Operating Income

Operating Income Margin

EPS

GAAP Results:

Operating Income

Operating Income Margin

EPS

the data center transition expenses of $7.7 million, which negatively impacted GAAP EPS by $0.14 per diluted share; and

the loss on the repurchase of convertible debt securities of $11.0 million, which negatively impacted GAAP EPS by $0.20 per diluted share.

Cash, cash equivalents, and short-term investments (1)

Net trade accounts receivable

Total long-term debt:

Par value

Unamortized OID

Net debt carrying amount

Cash Flows from Operating Activities:

Operations

Changes in operating assets and liabilities (2)

Net cash provided by (used in) operating activities

Cash Flows from Investing Activities:

Purchases of property and equipment

CSG derives approximately one-third of its revenues from its two largest clients;

CSG’s ability to maintain a reliable, secure computing environment;

Continued market acceptance of CSG’s products and services;

CSG’s ability to continuously develop and enhance products in a timely, cost-effective, technically advanced and competitive manner;

CSG’s ability to deliver its solutions in a timely fashion within budget, particularly large and complex software implementations;

CSG’s dependency on the global telecommunications industry, and in particular, the North American telecommunications industry;

CSG’s ability to meet its financial expectations as a result of increased dependency on software sales, which are subject to greater volatility;

Increasing competition in CSG’s market from companies of greater size and with broader presence in the communications sector;

CSG’s ability to successfully integrate and manage acquired businesses or assets to achieve expected strategic, operating and financial goals;

CSG’s continued ability to protect its intellectual property rights;

CSG’s conducting business in the international marketplace; and

Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates.

ASSETS

Current assets:

Cash and cash equivalents

Short-term investments

Total cash, cash equivalents, and short-term investments

Trade accounts receivable-

Billed, net of allowance of $1,958 and $1,837

Unbilled and other

Deferred income taxes

Income taxes receivable

Other current assets

Total current assets

Property and equipment, net of depreciation of $98,988 and $94,236

Software, net of amortization of $48,272 and $45,579

Goodwill

Client contracts, net of amortization of $140,084 and $133,218

Deferred income taxes

Other assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current maturities of long-term debt, net of unamortized original issue discount of $285 and $621

Client deposits

Trade accounts payable

Accrued employee compensation

Income taxes payable

Deferred revenue

Other current liabilities

Total current liabilities

Non-current liabilities:

Long-term debt, net of unamortized original issue discount of $33,728 and $34,841

Deferred revenue

Income taxes payable

Deferred income taxes

Other non-current liabilities

Total non-current liabilities

Total liabilities

Stockholders’ equity:

Preferred stock, par value $.01 per share; 10,000,000 shares authorized; zero shares issued and outstanding

Common stock, par value $.01 per share; 100,000,000 shares authorized; 34,593,385 shares and 34,120,789 shares outstanding

Additional paid-in capital

Treasury stock, at cost, 29,956,808 shares

Accumulated other comprehensive income (loss):

Unrealized gain on short-term investments, net of tax

Unrecognized pension plan losses and prior service costs, net of tax

Cumulative translation adjustments

Accumulated earnings

Total stockholders’ equity

Total liabilities and stockholders’ equity

Revenues:

Processing and related services

Software, maintenance and services

Total revenues

Cost of revenues (exclusive of depreciation, shown separately below):

Processing and related services

Software, maintenance and services

Total cost of revenues

Other operating expenses:

Research and development

Selling, general and administrative

Depreciation

Restructuring charges

Total operating expenses

Operating income

Other income (expense):

Interest expense

Amortization of original issue discount

Interest and investment income, net

Loss on repurchase of convertible debt securities

Other, net

Total other

Income before income taxes

Income tax provision

Net income

Weighted-average shares outstanding – Basic:

Common stock

Participating restricted stock

Total

Weighted-average shares outstanding – Diluted:

Common stock

Participating restricted stock

Total

Earnings per common share:

Basic

Diluted

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash provided by (used in) operating

activities -

Depreciation

Amortization

Amortization of original issue discount

Gain on short-term investments and other

Loss on repurchase of convertible debt securities

Deferred income taxes

Excess tax benefit of stock-based compensation awards

Stock-based employee compensation

Subtotal

Changes in operating assets and liabilities:

Trade accounts and other receivables, net

Other current and non-current assets

Income taxes payable/receivable

Trade accounts payable and accrued liabilities

Deferred revenue

Net cash provided by (used in) operating activities

Cash flows from investing activities:

Purchases of property and equipment

Purchases of short-term investments

Proceeds from sale/maturity of short-term investments

Acquisition of businesses, net of cash acquired

Acquisition of and investments in client contracts

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from issuance of common stock

Repurchase of common stock

Payments on acquired equipment financing

Proceeds on long-term debt

Payments on long-term debt

Payments of deferred financing costs

Repurchase of convertible debt securities

Excess tax benefit of stock-based compensation awards

Net cash used in financing activities

Effect of exchange rate fluctuations on cash

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental disclosures of cash flow information:

Net cash paid during the period for -

Interest

Income taxes

Comcast

DISH

Time Warner

Charter

Cable and Satellite Customer Accounts

Certain internal financial planning, reporting, and analysis;

Forecasting and budgeting purposes;

Certain management compensation incentives; and

Communications with CSG’s Board of Directors, stockholders, financial analysts, and investors.

A more complete understanding of CSG’s underlying operational results, trends, and cash generating capabilities;

Consistency and comparability with CSG’s historical financial results; and

Comparability to similar companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles;

The way in which CSG calculates non-GAAP financial measures may differ from the way in which other companies calculate similar non-GAAP financial measures;

Non-GAAP financial measures do not include all items of income and expense that affect CSG’s operations and that are required by GAAP to be included in financial statements;

Certain adjustments to CSG’s non-GAAP financial measures result in the exclusion of items that are recurring and will be reflected in CSG’s financial statements in future periods; and

Certain charges excluded from CSG’s non-GAAP financial measures are cash expenses, and therefore do impact CSG’s cash position.

Non-GAAP Exclusions

Data center transition expenses (1)

Intec acquisition-related charges (1)

Stock-based compensation

Amortization of acquired intangible assets

Amortization of original issue discount (“OID”)

Gain/loss on repurchase of convertible debt securities

Unusual income tax matters

The data center transition expenses are not considered reflective of CSG’s recurring core business operating results. The exclusion of these items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.

The Intec acquisition-related charges relate to certain direct and incremental expenses related to the acquisition of Intec, and thus, are not considered reflective of CSG’s recurring core business operating results. These charges include expenses related to the following: (i) restructuring; (ii) investment banking, legal, accounting, and other professional services; and (iii) costs primarily related to the settlement of foreign currency hedging instruments associated with the funding of the Intec acquisition. The exclusion of these charges in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.

Stock-based compensation results from CSG’s issuance of its common stock to its employees under incentive compensation programs. The amount of this incentive compensation in any period is not generally linked to the level of performance by employees or CSG, but instead is more dependent on

CSG’s stock price at the stock grant date, and the employee service period over which the equity awards vest. The exclusion of these expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to evaluate the non-cash expense related to compensation included in CSG’s results of operations. In addition, the stock-based compensation expense is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash generating capabilities of CSG’s business.

Amortization of acquired intangible assets is the result of business acquisitions. A portion of the purchase price in an acquisition is allocated to the intangible assets (e.g., software, client relationships, etc.) acquired, which are then amortized to expense over their estimated useful lives. This annual amortization expense is generally unchanged from the initial estimates, regardless of performance of the acquired business in any one period. Also, the value assigned to acquired intangible assets in a business combination is based on various estimates and valuation techniques, and does not necessarily represent the costs CSG would incur to develop such capabilities internally. Additionally, amortization of acquired intangible assets can be inconsistent in amount and frequency, and can be significantly affected by the timing and size of an acquisition. The exclusion of these expenses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to evaluate the non-cash expense related to acquisitions included in CSG’s subsequent results of operations. In addition, the amortization of acquired intangible assets is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash generating capabilities of CSG’s business.

The convertible debt securities OID is the result of allocating a portion of the principal balance of the debt at issuance to the equity component of the instrument, as required under current accounting rules. This OID is then amortized to interest expense over the life of the respective convertible debt instrument. The interest expense related to the amortization of the OID is a non-cash expense, and therefore the exclusion of this item allows investors to further evaluate the cash interest costs of CSG’s convertible debt securities for cash flow, liquidity, and debt service purposes.

Gains and losses related to the repurchase of CSG’s convertible debt securities are not considered reflective of CSG’s recurring core business operating results. The exclusion of these gains and losses in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current operating results with historical and future periods.

Unusual fluctuations in the effective income tax rate can occur because of income tax timing matters, or as a result of different treatment of certain items for book accounting and income tax purposes. Consideration of such items in calculating CSG’s non-GAAP financial measures allows management and investors an additional means to compare CSG’s current financial results with historical and future periods.

GAAP operating income

Data center transition expenses

Stock-based compensation

Amortization of acquired intangible assets

Non-GAAP operating income

GAAP income before income taxes

Data center transition expenses

Stock-based compensation

Amortization of acquired intangible assets

Amortization of OID

Loss on repurchase of convertible debt securities

Non-GAAP income before income taxes

GAAP operating income

Data center transition expenses

Depreciation (excluding data center transition expenses)

Amortization of intangible assets

Stock-based compensation

Adjusted EBITDA

Adjusted EBITDA as a percentage of revenues

Net income

Interest expense

Amortization of OID

Interest and investment income and other, net

Income tax provision

Depreciation (excluding data center transition expenses)

Amortization of intangible assets

Stock-based employee compensation

Data center transition expenses

Loss on repurchase of convertible debt securities

Adjusted EBITDA

Cash flows from operating activities

Income tax provision

Changes in operating assets and liabilities and deferred taxes

Data center transition expenses, net of depreciation

Interest expense

Interest and investment income and other, net

Other

Adjusted EBITDA

GAAP operating income margin

Stock-based compensation (4)

Amortization of acquired intangible assets (5)

Non-GAAP operating income margin (“approximately 18%”)

GAAP EPS

Stock-based compensation (7)

Amortization of acquired intangible assets (8)

Amortization of OID (9)

NNon-GAAP EPS

GAAP operating income

Depreciation

Amortization of intangible assets

Stock-based compensation

Adjusted EBITDA

Adjusted EBITDA as a percentage of revenues

Net income

Interest expense

Amortization of OID

Interest and investment income and other, net

Income tax provision

Depreciation

Amortization of intangible assets

Stock-based compensation

Adjusted EBITDA

Cash flows from operating activities

Income tax provision

Changes in operating assets and liabilities and deferred taxes

Interest expense

Interest and investment income and other, net

Other

Adjusted EBITDA