One of North America’s fastest growing SAP specialists, Sparta Consulting, to merge with KPIT Cummins

Combined practice to provide a credible alternative to Tier 1 suppliers in Enterprise consulting

All cash transaction is for a consideration of USD 38 Million (INR 180 Crores)

PUNE (India), California (USA), October 30, 2009 – KPIT Cummins Infosystems Ltd (BSE: 532400; NSE: KPIT), a global IT consulting and engineering partner to manufacturing corporations, is pleased to announce that they have entered into a definitive merger agreement with Sparta Consulting, a California, USA based firm and a leading provider of high end SAP solutions. The all-cash agreement is for a milestone based consideration of USD 38 million which includes a bonus of USD 4 million.

Strategic Rationale

The merger of Sparta Consulting, based in Folsom, CA, USA, further strengthens KPIT’s business model to sharply focus on select industries and achieve market leadership by creating best in class practices/offerings that help customers achieve their operational & strategic objectives.

This transaction is in line with KPIT’s stated growth strategy and is expected to result in greater efficiencies and increased market share. Key Highlights:

o Accelerates Growth: With over 1000 consultants in the combined entity, the SAP-led consulting practice provides a scalable alternative to Tier 1 companies which usually pursue larger (USD 25 million+) multi-service opportunities. With global demand for SAP based services growing at 24+%, the SAP led consulting practice has the potential to grow into a USD 100+ million business in next 3 years.

o Reinforces current SAP strengths of KPIT and the strategy to create a best in class SAP practice. Sparta’s dynamic team and proprietary templates/methodologies reinforces KPIT’s current strengths in value added SAP solutions to Automotive, Hi-Tech and Industrials sectors.

o Provides a headstart into an adjacent vertical: Sparta’s footprint in the Energy & Utilities sector would provide KPIT a headstart into this adjacent space.

Impact of merger on Sparta Consulting

o Expand vertical reach: In addition to the existing verticals, Sparta Consulting will now also be able to address the growing SAP market in Automotive and Industrials (KPIT has 100+ customers in this space).

o Extend Global Presence: Sparta would be able to leverage KPIT’s global presence and effectively scale in regions such as Europe & Asia Pacific.

Expressing his views on this occasion, Mr. Kishor Patil, MD & CEO, KPIT Cummins, said “Sparta Consulting is an excellent strategic fit and growth accelerator to our focused business model. It has a very committed team with extensive experience in rapidly scaling up ERP consulting business and we see a large market opportunity in this area. We are particularly impressed with the excellent track record of the Sparta team. The team has created a SAP services business which has grown nearly 300% year-on-year under trying economic conditions. The same team has earlier successfully created and grown an Enterprise consulting business to over USD 250 million. We welcome this merger and look forward to jointly helping our customers achieve their post-downturn growth objectives”.

Paul Freudenberg and Lokesh Sikaria, the two key principals at Sparta Consulting, added: “We have found an excellent partner in KPIT Cummins and are very excited about joining a focused solutions leader. KPIT’s larger geographic presence specifically in Europe and Asia Pacific complement our strong relationships in the SAP ecosystem. We are confident that our combined and complementary strengths create a leadership position in the SAP centric solutions business. We see great synergy in market verticals and domain focus. In addition, the IT services capabilities of KPIT Cummins beyond SAP, makes it a perfect strategic fit to accelerate the growth of Sparta Consulting by creating even more value for customers.”

The transaction is subject to legal and other clearances.

About KPIT Cummins

KPIT Cummins Infosystems Limited (BSE: 532400; NSE: KPIT), a trusted global IT Consulting and product engineering partner, is focused on co-innovating domain intensive technology solutions for Manufacturing corporations (with special focus on Automotive, Hi-Tech & Industrials verticals) to help its customers become efficient, integrated and innovative enterprises. In the last 5 years, KPIT has grown its revenue and profits at an industry-leading CAGR of around 50%. A leader in technology solutions and services, KPIT Cummins currently partners with 100+ global Manufacturing corporations including 50+ Original Equipment Manufacturers (OEMs), semiconductor companies and Tier 1s, helping them globalize efficiently & bring complex technology products/ systems faster to their global markets. Please visit www.kpitcummins.com for more information.

About Sparta Consulting

Sparta is a leading full service SAP provider and one of the fastest growing SAP consultancies in North America. Sparta’s innovative thought leadership along with process and Industry knowledge helps accelerate SAP implementations. Coupled with managed services and offshore support from India, Sparta’s employees improve return on investment and provide support to many of the best run companies. Founded in 2007 by Paul Freudenberg and Lokesh Sikaria, Sparta is privately held with its ownership distributed across a large number of its employees. Please visit www.spartaconsulting.com for more information.

Mumbai based Avendus Capital were the advisors on this transaction.

Safe Harbor

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and KPIT Cummins assumes no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

Media contacts for KPIT Cummins:

KPIT Cummins (Corporate) : Mohit Kochar | +91. 20. 66525000 | Mohit.kochar {at} kpitcummins(.)com

Gutenberg (India) : Sonali Madbhavi | +91.80.41146966| Sonali {at} gutenbergpr(.)com

Gutenberg (US) : Lavanya DJ | +212.239.8740 | Lavanya {at} gutenbergpr(.)com

Gutenberg (UK) : Shalini Siromani | +44.20.7470 8893| Shalini {at} gutenbergpr(.)com