January 6, 2004 NASDAQ-EVOL

Evolving Systems India Will Continue Successful Offshore Development Program That Accelerates Development of Low Cost Solutions for Carrier Customers

ENGLEWOOD, Colorado — Based on the growing success of its offshore software development program, Evolving Systems, Inc. (NASDAQ-EVOL) today announced plans to form Evolving Systems India, a wholly owned subsidiary located in the city of Bangalore.

Stephen Gartside, CEO, said Evolving Systems India will begin operations during the first quarter of 2004 and will eventually replace the Company’s current relationship with an India-based development partner that performs approximately 60% of the Company’s development work. He said the new, captive development center will enhance Evolving Systems’ proven ability to deliver low-cost, fast-turnaround software solutions to North American carrier customers. It will also create an opportunity to move more quickly into new areas that leverage low cost development and testing capabilities.

“For the past three years we have been working closely with our India-based development partner,” said Gartside. “During that period, our customers have benefited significantly from a round the clock workday, lower development costs and accelerated implementation. We believe that by launching our own development operation, we will achieve further cost reductions and operating efficiencies to the benefit of our customers and our shareholders. In addition, we will have increased flexibility to tailor our offshore staff to manage a wider variety of projects that we anticipate as a result of our organic and acquisitive growth strategies.”

Gartside said Evolving Systems India plans an initial workforce of approximately 40, although that number could change based on potential demand for the Company’s solutions. He added that despite one-time start-up costs, the new unit should contribute to lower overall development costs and improved customer service during 2004.

“Evolving Systems has built a reputation for providing customers with solutions that meet their needs exactly at the lowest possible cost,” Gartside said. “We are committed to a process of continuous improvement and cost reduction, and our offshore development model is a key part of that process. By using our deep domain expertise to build customer specifications through our U.S. presence in Denver, Colorado and Columbus, Ohio, and then managing the bulk of the development offshore with our continuous workday that leverages diverse time zones, we ensure rapid deployment of low cost, high quality software solutions for our tier one wireline and wireless carrier customers.”