i-flex® posts 51% growth in revenues YoY for the quarter ended June 2006

Mumbai - 28 July 2006:

Highlights of the Quarter (financials as per US GAAP)

· Revenue grows 51% YoY to Rs 407.5 crore. As compared to quarterly average for the last financial year, the revenues in the quarter show 10% growth.
· Net income for the quarter stands at Rs 41.5 crore.
· Signed 22 new customers on the strength of continued market opportunities
· Gross addition of 553 employees in the quarter (excluding KPO business - Equinox), with the total staff strength increasing to 6484. The total staff strength of the group inclusive of KPO business increases to 7,101 – an increase of 29% over the period ended June 2005.

Solutions Portfolio

Products Business

· Revenues post 75% increase YoY;
· FLEXCUBE winning momentum continues with 11 new client signings
· Financial Information Network & Operations, India, a new venture of ICICI Bank, India, selects FLEXCUBE for its core operations
· A global European bank selects FLEXCUBE for its foray in Japan
· Hong Kong Shanghai Banking Corporation implements FLEXCUBE Investor Services for its institutional fund services business across Asia and Middle East
· Reveleus Basel II continues its winning innings, signing three deals in the quarter.

Services Business

· Revenues post 31% YoY and 5% QoQ increase for the quarter;
· Signed 5 new relationships in the quarter, including one major global bank in US
· While the revenues from Citibank have grown in absolute terms, the share of non-Citi revenue continues to grow and stands at 46%.

Awards & Accolades

· Equinox, the business process outsourcing arm of i-flex Solutions, selected in the Leadership Category of The Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP). i-flex/Equinox also wins a pride of place in the 50 Best Managed Global outsourcing vendors in a survey conducted by Brown-Wilson Group for The Black Book of Outsourcing, covering 872 Outsourcing Vendors in 63 countries.
· FLEXCUBE was ranked highest both on advanced technology and breadth of functionality by Celent in its recent research report on Global Core Banking Solution vendors.
· Rajesh Hukku, Chairman & Managing Director wins International Stevie® Award in the category of Best Chairman.
· Reveleus is ‘Highly Commended’ for its Compliance Initiative Innovation in the Banker Technology Awards 2006.
· Celent ranks the Reveleus Operational Risk solution amongst the top 3 solutions in the world in its category.

The Board of Directors of i-flex solutions limited, a leading provider of IT solutions to the global financial services industry, has approved the results for the quarter ended June 3O, 2006.

Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, “Our comprehensive solutions portfolio is helping financial institutions worldwide gain leadership in their business. We are delighted with the top ratings that the industry analysts such as Gartner, Forrester and Celent have given to FLEXCUBE and REVELEUS in the recent past; and a consistent streak of top tier wins for our products and services in the US, Europe and Japan.”.

R. Ravisankar, CEO, International Operations and Business Development added, “We now have the most comprehensive portfolio of solutions to help financial institutions meet the challenges of a highly competitive environment – and we continue to see rapid growth across the entire portfolio.

Commenting on the financials Deepak Ghaisas, CEO, India operations & CFO said, “We are investing in infrastructure aggressively to meet market opportunities. This strategy is aimed at leveraging scale to help optimize costs while giving us the required flexibility to quickly expand operations.”

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