Intelligroup Reports Third Quarter Financial Results

Intelligroup Reports Third Quarter Financial Results

Hyderabad, India., October 29, 2007 — Intelligroup Inc., a consulting, business optimization, and outsourcing firm serving global corporations, today reported results for its third quarter and six-month period ended September 30, 2007.

Third Quarter Highlights:

— Revenue growth: Revenue grew 5.5% from second quarter to third quarter of 2007 and grew 16.8% from the third quarter of 2006.

— Gross Margin: Gross margin remained relatively flat at 29% as compared to second quarter of 2007 and third quarter of 2006.

— Operating Margin: Operating margin improved three percentage points quarter over quarter from 2.7% of revenue in second quarter of 2007 to 5.5% in the third quarter. Year on year it improved by approximately four percentage points from 1.7% in third quarter of 2006 to 5.5% in the third quarter of 2007.

— Utilization Rate: Utilization rate remained flat at 70% in the third quarter of 2007 as compared to second quarter of 2007 and decreased by two percentage points as compared to third quarter of 2006.

— New Customers: Added 39 new customers globally in the third quarter of 2007

The Company reported third quarter 2007 revenues of $38.0 million, which marks a 5.5% increase from $36.0 million in the second quarter of 2007 and a 16.8% increase from $32.5 million in the third quarter of 2006. The Company’s average bill rates were relatively flat in the third quarter of 2007 as compared with the second quarter of 2007 and the third quarter of 2006. Due to its continued focus on utilization rates and effective cost management strategies, the Company reported gross margin of 29.0% for the third quarter of 2007, which remains relatively flat as compared with the second quarter of 2007. The Company reported operating income from continuing operations of $2.1 million, which marks a 114% increase from $984,000 in the second quarter of 2007 and 287% increase from $545,000 in the third quarter of 2006.

ABOUT INTELLIGROUP

Intelligroup is a vertically-led ERP focused life cycle management partner serving global corporations as well as public sector clients. Its proven Global delivery model has enabled customers to accelerate results and reduce costs significantly. With deep expertise in industry-specific enterprise solutions, Intelligroup has earned a reputation for consistently exceeding client expectations. Intelligroup develops implements and supports IT solutions for some of the largest U.S. school systems and global corporations including GE, Hershey, Abbott Labs, Eastman Chemical, Hitachi, and Kimball International.