Hexaware announces Fourth Quarter and Full-Year 2006 results; net profit doubles in 2006

Mumbai – 22 February 2007

• Revenue from operations up 39.9%* to Rs 8,482.14 mn for CY’06 • Net profit up 99.1%* to Rs 1,242.32 mn for CY’06 • Hexaware wins 49 clients in CY’06 • FocusFrame integration is on track • Board recommends 40% Final Dividend – Total 80% dividend (Rs 1.60 per share) for the year 2006 • Hexaware in Top 25 Companies list for ‘National Award for Excellence in Corporate Governance – 2006’ by ICSI

Hexaware Technologies Ltd, a leading global IT & BPO services provider, today announced financial results for Fourth Quarter and Full-Year 2006.

Financial Highlights
Fiscal year ended December 31, 2006
• Revenue from operations was Rs 8,482.14 mn ($187.22 mn), an increase of 39.9%* over CY’ 05 • Net Profit after tax was Rs 1,242.32 mn ($27.44 mn), an increase of 99.1%* over CY’05 • 49 new clients added during the year; highest addition ever • 129 active clients; 41 are Fortune 500 / Global 500 corporations • 41 ‘million dollar’ clients were billed during the year vs. 30 such clients in CY’ 05 • Increase in global headcount of 2183 to 5829 at the end of the year • Significant improvement in gross margins from 35.7% in CY’05 to 37.3% in CY’06. Improvements in operating margins from 9.9% to 13.2% and PAT margins from 10.3% to 14.6% over the same period

Fourth Quarter ended December 31, 2006
• Consolidated Revenue from operations was Rs 2,402.18 mn ($53.76mn) • Net profit after tax was Rs 337.54 mn ($7.59mn) • Diluted EPS on an annualized basis was Rs 8.99; Basic EPS was Rs 9.46 • Added $ 40.2 mn of new business orders • 12 new clients acquired during the quarter

On November 28, 2006, Hexaware successfully closed the acquisition of FocusFrame Inc., a US based testing services firm, ahead of schedule.

∗ NOTE: All data comparison shown above relates to CY’05 financials that exclude corresponding Peoplesoft BoT figures. This BoT was transferred to Oracle on Nov 2, 2005.

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