Sify Technologies Third Quarter 07-08 Revenues at $38.38 Million

EBITDA at $ 5.03 million, Net Profit at $ 1.55 million

Sify Technologies Limited (Nasdaq Global Markets: SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities, announced today its consolidated US GAAP results for the third quarter ended 31st December 2007.

Performance Highlights:

* Sify reported revenues of $ 38.38 million for the third quarter ended 31st December 07, 2.8% higher than the previous quarter, and 8.7% higher compared to the same period last fiscal.
* Sify’s Profit before tax & exceptional items was $2.23 million versus $1.09 million in the previous quarter. Post exceptional items, the Net Profit after tax for the quarter was $1.55 million as compared to the previous quarter’s Net Loss of $1.26 million.
* Adjusted EBITDA was $5.03 million as compared with $3.94 million in the preceding quarter. Adjusted EBITDA for the same period last year was $4.14 million.
* Sify ended the quarter with a cash balance of $42 million after capital expenditure of $5.94 million during the quarter.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies, said, “We have done well to grow sequentially, driven by growth in our Enterprise businesses. The restructuring of our Consumer businesses into a single integrated platform for access and delivery of multiple content services including ecommerce, eLearning, entertainment and online games is underway, and will take approximately four to six months to complete. This includes new technologies that will allow us to scale as the demand for rich graphic and video content grows. We will re-launch the Consumer business when ready to scale our revenues. To meet demand, we are investing in expanding our network, as well as building a new data center in Mumbai. We are also planning to invest in a data center in Delhi, as well as investing in land in Chennai where Sify’s headquarters, with sophisticated data centers and network command centers, will be developed.”

Mr. MP Vijay Kumar, Sify CFO, said, “Revenues, EBITDA and net profit have all shown growth based on operations on the back of aggressive growth in enterprise services. As we move to building an integrated platform for consumer services delivery, we will review non-performing cyber cafés and home broadband access locations. Investments for growth are being made to meet growing demand from enterprise customers for both connectivity and hosting services. The Consumer business will also benefit as new cities open up for cybercafés and broadband services.”