TECH MAHINDRA Q2 revenues up by 29%

MUMBAI, October 19, 2007:

Key highlights:

• Net profit after tax of Rs 181.6 crores and revenue of Rs 897.5 crores

• Netprofit after tax before extraordinary items grew by 28% and revenue grew by 29%, over the corresponding quarter of the previous year

• Headcount crosses 23,000 mark

Financial Summary

Tech Mahindra Limited, one of the largest solution providers in the telecom space, announced a 28% growth in net profit after tax before extraordinary items and 29% increase in revenue for Q2 FY08 over the corresponding quarter in the previous year. Tech Mahindra reported consolidated net profit after tax, before extraordinaryitems, of Rs 181.6 crores for Q2 FY 08 as against Rs 141.6 crores in Q2 FY 07. The company's revenue is was Rs 897.5 crores for Q2 FY08 as against Rs 697.5 crores in Q2 FY07.

In the previous financial year in Q2 FY07 there was a one time tax refund of Rs 33.9 crores. Consolidated net profit after tax after extraordinary items is Rs 181.6 crores for Q2 FY 08 as against Rs 175.6 crores in Q2 FY07.

The number of clients increased from 87 in Q1 FY 08 to 96 in Q2 FY 08. The number of clients generating revenue of more than USD 5 m annually went up from 9 in Q1 FY 08 to 12 in Q2 FY 08.

The company derived 19%, 75% and 6% of its revenues in the current quarter from theUS , Europe and ROW regions respectively. Revenues grew 39% and 32% in the US and Europe regions respectively.

T Mr. Anand Mahindra, Chairman, Tech Mahindra T said, "Tech Mahindra has expanded its presence in new areas and services to better address customer needs in the evolving telecom marketplace.?

T Mr. Vineet Nayyar , Vice Chairman & MD, Tech Mahindra T said, ?This has been a good quarter with strong customer additions and improved performance in spite of the rising rupee.?

Operations

In the Telco transformation domain Tech Mahindra has been engaged by a leading Asia Pacific telecom service operator for roll out of their next generation network program to provide faster and more efficient services to their customers. As a part of this engagement, Tech Mahindra will own end to end responsibilities for design, development, customization and integration of the next generation technology stack.

Expanding its footprint in the cable and direct broadcast satellite market, Tech Mahindra has been chosen by an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless telephone service as their exclusive offshore partner for their transformation initiatives.

Tech Mahindra continues to focus on emerging markets, enabling new roll outs, facilitating expansion and transition to new technologies. Tech Mahindra has been commissioned by an Asia pacific telecom operator for the implementation and system integration of a convergent OSS/BSS solution. The solution will enable realization of the client's vision of migrating to an IP based network over the next few years.

Additionally in the BSSdomain, Tech Mahindra won a managed services project with an incumbent operator in Africa for the implementation and system integration of a complete OSS/BSS solution for enabling launch of wireless operations. Tech Mahindra will partner with the client for a three year period to help launch wireless operations, migrate wireline operations to the new OSS/BSS solution and help in migrating to an IP based network over a three year period. The solution provides a high degree of automation of network planning and operations.

In the OSS space Tech Mahindra, has been commissioned by a telecom operator in Asia Pacific to build a network operations centre which would help the client monitor itsoperations more efficiently.

In the CRM domain Tech Mahindra has also won an implementation and migration engagement for a leading service provider in Israel for the provision of a CRM solution for the prepaid segment. The solution is geared to deliver significant operational cost savings, and enables the rapid realization of new products and services.

Tech Mahindra strengthened its presence in the BPO space in the North American market. It has been entrusted with a project involving service assignment and feature activation orders for new services, changes or cancellations which will assist in automating complex manual assignments thereby improving process efficiencies.

Tech Mahindra has also won a deal with a leading US provider for voice, video and data services to provide data analysis services to accelerate work order processing backlog and turn around. This will enable the client to accelerate major network infrastructure improvements and reduce work order processing costs significantly.

Human Resources

Tech Mahindra's total headcount increased to 23,100 this quarter from 21,146 in the last quarter.

Awards & Rankings

•  Ranked as the 2 P nd P largest telecom software company in India (Voice and Data 2007)

•  Brand Leadership award in Information Technology (Savile Row 2007)

•  HR leadership award (Asia Pacific HRM congress 2007)

About Tech Mahindra

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, majority stake owned by Mahindra & Mahindra, in partnership with BT Plc. With total revenues of Rs 29,290 million in the year ended March 31, 2007, Tech Mahindra is India's 6 th largest software exporter, and serves telecom service providers, equipment manufacturers, software vendors and systems integrators. Tech Mahindra solutions enable clients to maximize returns on IT investment by achieving fast time to market reduced total cost of ownership and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, proven innovative delivery models and approach to off shoring.

Assessed at SEI-CMMi Level 5 and PCMM Level 5, Tech Mahindra's track record for value-delivery is supported by over 23,000 professionals who provide a uniqueblend of culture, domain expertise and in-depth technology skill-sets. Its development centres are ISO 9001:2000 & BS7799 certified. Tech Mahindra has principal offices in the UK , United States , Germany , UAE, Egypt , Singapore , India , Thailand , Taiwan & Australia .

www.techmahindra.com

For more information contact Bibek Chattopadhyay at

bibekc@techmahindra.com