Infosys Technologies Announces Results for the Quarter and Year Ended March 31, 2008

Highlights

Consolidated results for the quarter ended March 31, 2008
Fourth quarter revenues at $ 1,142 million, up by 32.3% from the corresponding quarter last fiscal
Earnings per American Depositary Share (ADS)(a) increased to $ 0.55 from $ 0.46 in the corresponding quarter last fiscal; YoY growth of 19.6%
40 new clients were added during the quarter by Infosys and its subsidiaries
Gross addition of 5,947 employees (net 2,586) for the quarter by Infosys and its subsidiaries
91,187 employees as on March 31, 2008 for Infosys and its subsidiaries
Special Dividend of Rs. 20 per ADS (equivalent to $ 0.50 per ADS at the prevailing exchange rate of Rs. 40.02 per US$) and a final dividend Rs. 7.25 per ADS (equivalent to $ 0.18 per ADS at the prevailing exchange rate of Rs. 40.02 per US$). The dividends are payable on the ADSs outstanding as on record date, at the prevailing exchange rate on the payment date and are subject to approval by the shareholders.
The Company’s current financial policy is to pay dividends up to 20% of net profits. The Board has decided to increase the dividend pay-out ratio to up to 30% of net profits effective fiscal 2009.

(a)The tax provision for quarter ended March 31, 2008 and fiscal 2008 includes a tax reversal of $ 5 million and $ 30 million. Excluding this the earnings per share for the quarter and year ended March 31, 2008 would have been $ 0.54 and $ 1.98 resulting in a YOY growth of 31.7% and 33.8% respectively.

Outlook for the quarter ending June 30, 2008 and fiscal 2009

Quarter ending June 30, 2008
Consolidated revenues are expected to be in the range of US$ 1,142 million and US$ 1,145 million; YoY growth of 23.1% – 23.4%
Consolidated earnings per American Depositary Share(b) are expected to be US$ 0.52; YoY growth of 18.2%

Fiscal year ending March 31, 2009
Consolidated revenues are expected to be in the range of US$ 4.97 billion and US$ 5.05 billion; YoY growth of 19.0% – 21.0%
Consolidated earnings per American Depositary Share(b) are expected to be between US$ 2.31 and US$ 2.35; YoY growth of 16.7% – 18.7%

(b)Excluding tax reversal of US$ 5 million and US$ 30 million for the quarter and year ended March 31, 2008 respectively

“Our Global Delivery Model, combined with our consulting and solution capabilities, provides a strong platform for customers seeking efficiencies in their IT spend,” said S. Gopalakrishnan, CEO and Managing Director. “Thus, while there could be short-term challenges due to global economic uncertainties, we as a company see significant growth opportunities in the medium to long term.”

Market leaders across industry verticals continued to leverage Infosys’ solutions and services to transform their businesses and compete effectively in a dynamic business environment.

Leading manufacturers are partnering with Infosys to improve their competitiveness. A top carmaker is consolidating its contact centers with Infosys’ expertise. A manufacturer of aerostructures is leveraging Infosys’ engineering services. For a leading automotive supplier, Infosys is implementing a next-generation services business platform built on Siebel and Oracle Fusion technologies. Infosys is advising an automobile manufacturer to transform its end-customer experience by developing its contact center consolidation strategy.

A data storage supplier has sought Infosys’ advice to redesign its website to improve brand awareness. A US agribusiness and food company has signed up Infosys for supply chain management, global trade management and procurement. An automotive equipment manufacturer has engaged Infosys to set up a distributed workflow management system to reduce operational costs.

A leading online community is leveraging Infosys’ Web 2.0 expertise to redesign its website for improved effectiveness. A power equipment manufacturer is using Infosys’ help to migrate its legacy data systems.

Infosys is performing multiple business capability improvement initiatives for a global services company. A leading public safety organization used Infosys’ expertise for database consolidation and localization and an oil and gas industry leader has chosen Infosys as a strategic partner to meet its enterprise IT needs.

Growth in new markets was strong. In the Middle East, Infosys defined the IT strategy and roadmap for the smelter operations of an aluminum producer and defined and designed a world-class QA framework for the IT organization of a transit authority.

Infosys is delivering a complete set of IT Infrastructure managed services to a multi-brand retail leader in the US and helping a global logistics leader define its application landscape and create a roadmap for future IT programs.

“We crossed a significant milestone reaching US$ 1 billion in net profits during the year. We also have successfully maintained our margins during the year, despite an 11% appreciation in the rupee,” said V. Balakrishnan, Chief Financial Officer. “Our special dividend payment is to celebrate the achievement of the US$ 1 billion net income milestone and is in line with our desire to balance the cash required in the business with that of enhancing returns to our shareholders.”

About the company

Infosys Technologies Ltd. (NASDAQ: INFY) defines, designs and delivers IT-enabled business solutions that help Global 2000 companies win in a Flat World. These solutions focus on providing strategic differentiation and operational superiority to clients. Infosys creates these solutions for its clients by leveraging its domain and business expertise along with a complete range of services. With Infosys, clients are assured of a transparent business partner, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has over 91,000 employees in over 40 offices worldwide. Infosys is part of the NASDAQ-100 Index. For more information, visit www.infosys.com.