Funding From Fidelity International and Nexus India Capital to Fuel Business Growth

Chennai, India. February 12, 2008 - Netmagic, India’s leading carrier-neutral managed IT services provider, as part of its Rs.100 crore expansion plan today announced that it has acquired Rs. 80 crores in private equity funding. This funding was led by the Indian proprietary venture and growth capital arm of Fidelity International Limited (FIL) and Nexus India Capital, India’s leading Venture Capital firm. Netmagic will use proceeds of this financing to accelerate business growth and expand its footprint in the domestic and international markets and build a nationwide network of data centers.

Netmagic has established a very strong presence in the financial services, telecom, online media and manufacturing verticals, and its wide array of high quality services and a strong customer base gives the company its competitive edge.

“This financing demonstrates our investor’s confidence in our management team, our strategy and our roadmap,” said Sharad Sanghi, Chief Executive Officer and Managing Director, Netmagic Solutions. “Over the last few years, we have built a bluechip client base in the financial, telecom and online trading and travel sectors. This is the right time to invest more aggressively and scale our business to the next level and roll out new locations and services in 2008,” he added.

“Over the past few years, Netmagic has achieved growth rates of over 70 per cent and gained significant market share in the fast-growing, highly competitive Indian managed hosting services market,” said Mr. Raj Dugar, Senior Managing
Director at FIL’s Indian proprietary venture and growth capital arm. “With a world-class management team, best-in-class systems and processes and solid customer base, we are confident of Netmagic’s continued success, and look forward to being associated with the company as it achieves its ambitious growth plans,” he added.

“Netmagic’s leadership position, technology innovation, and high quality delivery has led us to double up on our original investment in the company,” said Sandeep Singhal from Nexus India Capital. “This investment reaffirms our commitment to invest in innovative high growth companies in India. With a stronger balance sheet and its unique positioning, Netmagic will emerge as a global provider of choice for mission critical applications in the outsourced data center and remote infrastructure management space,” he added.

Netmagic’s client list includes domestic and global market leaders in Banking and Financial services, Media and Entertainment, ITES, Manufacturing, Hospitality, Travel and Tourism, Education, Telecom, and Government institutions.

About Netmagic

Netmagic Solutions is India’s leading Managed IT Services Provider, specializing in services of Internet Data Centers,Managed Hosting, Remote Infrastructure Management,Mail and Messaging.

Netmagic Solutions is ISO 27001 (formerly BS7799-2) certified and SAS70 Audit (Type II) compliant.Netmagic Solutions Data centers in India are carrier- neutral.

Combining world class internet data centers with advanced technology and professional service capabilities, Netmagic Solutions delivers mission critical hosted applications for over 500 of world’s best known enterprises from multiple locations to their customers in a secure and seamless manner.

Netmagic has multiple datacenters located in Mumbai, Bangalore and a virtual datacenter in the US. These are equipped with best-in-class infrastructure, world-class services, tools and skilled personnel giving our customers the option to host their applications in any of these centers.

Netmagic assures mission critical support to its customers in association with its ecosystem of channel and alliance partners.

For more details please visit

www.Netmagicsolutions.com

About Fidelity International

FIL has offices in over 20 countries across Europe and Asia-Pacific. The Indian venture and growth capital arm of FIL, which comprises some of the most experienced investment professionals operating in the Indian region, seeks to actively invest predominately FIL proprietary capital principally in high-quality, high-growth companies broadly in the information technology, healthcare and consumer sectors in India.

About Nexus India Capital

Nexus India Capital is India’s leading Venture Capital Fund focused on investing in innovative early to growth stage companies across sectors in India. Some of the areas of focus include Technology, Consumer services, and Outsourced business processes. The Nexus team includes successful entrepreneurs based in Silicon Valley, USA and Mumbai, India who bring extensive relationships and expertise in building companies. They typically prefer to invest early and play and formative role in developing the company. Some of the companies backed by the Nexus team include Speedera, Makemytrip, CustomerAsset, Pangea3, Baazee, Netmagic, Mobile2win, DimDim, Kirusa and Mapmyindia. For more information, please visit www.nexusindiacap.com