MindTree Consulting Third Quarter Revenues Show Strong Growth

Business Wire, Jan 22, 2008

Year over Year (YoY) revenues increase by 45%; Profit After Tax (PAT) up by 26.3% in dollar terms

WARREN, N.J. -- MindTree Consulting Ltd., a global IT and R&D Services Company, announced its results today for the quarter ended December 31, 2007 as approved by its Board of Directors.

Financial Highlights for the Third Quarter Ended December 31, 2007

* Revenues increased by 45% YoY and by 5% quarter over quarter (QoQ) to $47.2 Million. Revenues grew by 27% YoY and 2.5% QoQ in rupee terms.

* EBITDA grew by 44.9% YoY and 9.3% QoQ in dollar terms. In rupee terms, EBITDA increased by 28.7% YoY and 7.1% QoQ.

* PAT increased by 26.3% YoY in dollar terms. PAT grew by 10.4% YoY in rupee terms.

* IT Services revenue grew by 4.9% and R&D Services by 5.1% QoQ in dollar terms.

* At the beginning of the year, MindTree had guided to a total income of $178-$180 Million. Given our performance in the first 9 months of the year, we are revising our guidance on total income to $186 Million. On the profit front, we had given PAT guidance of $22.5-$22.6 Million. The earlier guidance was based on the exchange rate of Rs 41 per dollar, which is now closer to Rs 39.50. In spite of the rupee appreciation of approx 4%, we are maintaining our PAT guidance of $22.6 Million.

Other Q3 2007-08 Highlights

* The Company added 23 new clients during the quarter; including two Fortune Global 500 organizations. The total client base at the end of the quarter was 190.

* MindTree crossed the 5,000-mark in people numbers with a gross addition of 828 during the quarter. The total number of MindTree Minds as of December 31, 2007 was 5,419.

* The Company commenced operations from its own SEZ development center in Chennai during the quarter.

* Also during the quarter, MindTree acquired TES-Purple Vision, strengthening its position in the IC design area.

* MindTree was declared the Number 1 Most Admired Knowledge Enterprise in India by Teleos, in association with The KNOW Network.

* MindTree was ranked second in the Best Companies to Work For in India survey conducted by Business Today, Mercer and TNS India.

* MindTree was awarded a Silver Trophy at the EMPI-Indian Express Innovation Awards 2006.

* MindTree was selected among the Top 25 organizations in India for Good Corporate Governance Practices at The National Award for Excellence in Corporate Governance 2007, granted by the Institute of Company Secretaries of India along with the Ministry of Company Affairs and the Institute of Chartered Accountants of India.

Commenting on the Q3 2007-08 results, MindTree Consulting Chairman & Managing Director Ashok Soota said, "We continue to see high growth potential for our differentiated and value-added offerings. Our customer experience survey conducted during the quarter once again reiterates the high levels of customer satisfaction in MindTree. 94% of our customers have given a rating of 4 or above (on a scale of 5) on their willingness to do repeat business with us and 88% of them have given a rating of 4 or above (on a scale of 5) on overall satisfaction. MindTree received recognitions in the areas of knowledge management, corporate governance and people practices during the quarter. These are stepping stones to our Vision of being amongst the most admired companies in our industry."

About MindTree Consulting

MindTree Consulting is a global IT and R&D Services Company co-headquartered in the U.S. and India. With a passion for customer satisfaction, MindTree partners with its clients to create a transparent, value-based relationship. Our domain experts deliver business-enabling solutions by leveraging a consulting led, framework-based and IP-driven approach. MindTree's IT Services business provides a range of services to CIOs across a variety of industry segments. Our R&D Services business works with Technology companies to help build innovative products by providing Product Realization services.

MindTree was named among the Top 30 offshore service providers by the International Association of Outsourcing Professionals and Fortune Magazine. Widely known for its focus on human capital development, MindTree has been consistently rated as the most admired employer by several industry surveys, including Hewitt Associates and Mercer/TNS, and is also the winner of the MAKE Award for knowledge management. MindTree has been selected as one of the Top 25 companies for good Corporate Governance practices. MindTree is publicly listed in India. Please visit us at www.mindtree.com

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.