Highlights

Consolidated results for the quarter ended March 31, 2005

• Fourth quarter revenues at $ 455 million, up 50.2% from the corresponding quarter last fiscal
• Earnings per American Depositary Share (ADS) increased to $0.47 from $ 0.29(*) in the corresponding quarter last fiscal
• Final dividend of Rs. 6.50 per ADS (equivalent to $ 0.15 per ADS at the prevailing exchange rate of Rs. 43.62 per US$). The dividends are payable on the ADSs at the prevailing exchange rate on the payment date and are subject to approval by the shareholders
• 37 new clients were added during the quarter
• Gross addition of 2,506 employees for the quarter
• 36,750 employees as on March 31, 2005
• $ 11 million received on sale of investment in Yantra Corporation, USA

(*) adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share

Outlook for the quarter ending June 30, 2005 and the fiscal year ending March 31, 2006

• Consolidated revenues expected to be between $ 459 million and $ 463 million for the quarter ending June 30, 2005 (growth of 37.0% to 38.2%) and between $ 2,038 million and $ 2,070 million for the fiscal year ending March 31, 2006; growth of 28.0% - 30.0%
• Consolidated earnings per ADS(*) expected to be $ 0.44 for the quarter ending June 30, 2005, (growth of 41.9%) and $ 1.92 to $ 1.95 for the fiscal year ending March 31, 2006; growth of 22.3% - 24.2%

(*) adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share

Infosys Technologies Limited ("Infosys" or "the company") today announced financial results for its fourth quarter ended March 31, 2005. Revenues for the quarter aggregated $ 455 million, up 50.2% from $ 303 million for the quarter ended March 31, 2004.

Net income was $ 127 million ($ 77 million for the quarter ended March 31, 2004) and earnings per ADS was $ 0.47 ($ 0.29 for the quarter ended March 31, 2004(*)).
(*) adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share

"We are beginning to see the results of various initiatives taken over the last few years," said Nandan M. Nilekani, CEO, President and Managing Director. "Our clients increasingly see us as a strategic long-term partner who can offer a wide range of services and contribute to their business goals."

"During the quarter, we realized the gains on our investment in Yantra Corporation, the first Infosys-incubated company," said S. Gopalakrishnan, Member of the Board and COO. "We have added a record number of employees during the year and our variable compensation plan helped align our employee costs to the growth in business."

Infosys' Radio-Frequency Identification (RFID) solutions continued to make global corporations more competitive. A global advanced electronics and high technology company is using Infosys' expertise to comply with an RFID mandate and to build a strategy roadmap for its mobile computing product line. Infosys is developing industry-based RFID scenarios and templates for one of the world's largest software companies.

Infosys is working with a global leader in enterprise mobility computing for product engineering and next-generation product development. A large independent distributor of office equipment and document management services is using Infosys' business intelligence solution for Sarbanes Oxley compliance.

Infosys is helping a large US-based Cable Multi-Service Operator (MSO) upgrade its network to offer Voice-over IP (VoIP) services. Infosys is consolidating multiple billing systems for a prominent integrated telecommunications services provider in the US. Infosys enabled a global telecom service provider to set up a regional customer service center to provide data, voice, mobile and CRM services to its Asia Pacific customers.

Infosys completed a web-based risk management program for a leading mortgage insurance services company in the US. A market leader in Western Europe sought Infosys' services to improve its operating efficiencies and reduce total cost through a strategic analysis of its IT portfolio.

Infosys assessed and designed technology architecture for a leading diversified financial services company in the US. A leading investment bank used Infosys' expertise to implement an enterprise-wide financial messaging solution across multiple geographies. Infosys implemented a strategic reporting solution for the mortgage business of a leading European retail bank and migrated mission-critical databases for a large German independent financial advisor.

"We have been taking steps towards transforming the way we manage our large accounts. Our focus is to bring the best that we can offer to our clients in an integrated manner while strengthening key relationships," said Basab Pradhan, Head - Worldwide Sales and Senior Vice President. "We are delighted with the progress we have made so far."

"Our investments in growing new services have yielded returns, both in terms of revenue as well as value differentiation. Services such as Independent Validation and Infrastructure Management continue to demonstrate healthy growth while System Integration continues to deliver higher value through technology solutions," said S. D. Shibulal, Member of the Board and Head - Worldwide Customer Delivery. "Progeon continues to surge ahead, delivering both growth and enhanced client value."

"This has been a good year. Pricing has been stable. The movement of the Rupee against the US Dollar was hedged efficiently. We spent $ 186 million on capital expenditure and added a record 10,781 seats. Our Balance Sheet continues to be liquid with over $ 688 million in cash and cash equivalents, and investments in liquid mutual fund units," said T. V. Mohandas Pai, Member of the Board and Chief Financial Officer. "We also invested back in the business to develop engines of growth."