MindTree Financial Results Q2 09

alore, India, October 20, 2008: MindTree Limited, a globalIT and R&D Services Company, announced its results today for the second quarterended September 30, 2008 as approved by its Board of Directors.This marks an historic milestone for the Company as the results of Aztecsoft arefully consolidated with MindTree for the first time, effective August 1, 2008. Thiswill increase MindTree's revenues and contribute to its growth story. Since thedilution of MindTree's shareholding is only about 3%, the consolidation wouldincrease MindTree's earnings per share as well. We are confident that this shouldlead to increase in shareholder value for MindTree.MindTree's Financial Highlights for the Second Quarter Ended September 30, 2008- Software revenues grew by an industry-leading 9.1% Quarter over Quarter (QoQ) and32.5% Year over Year (YoY) to $59.6 Million. In rupee terms, software revenuesincreased by 14.4% QoQ and 40.6% YoY.- In rupee terms, EBITDA for the quarter was 27.9% against 21% in Q1 2008-09 and16.2% in Q2 2007-08. This reflects a QoQ growth of 52.6% and a YoY growth of 142%.The significant increase in EBITDA has been realized due to the depreciation of therupee and the increased efforts of the Company on productivity improvements such asutilization.- Profit After Tax (PAT) increased by 31.3% YoY to $8.8 Million. In rupee terms, PATgrew by 34.8% YoY to Rs 366 Million.- MindTree's IT Services revenues grew by 10.1% QoQ and 35.4% YoY. R&D Servicesposted a growth of 5.7% QoQ and 22.8% YoY.- The above results include that of MindTree Technologies, a 100% subsidiary ofMindTree Ltd.- The Board has recommended an interim dividend of Re 1 per share.- The Company maintained its revenue guidance for the current year at $228-238 Million.Other Q2 2008-09 Highlights for MindTree- 22 new customers were added during the quarter, bringing the current activecustomer base to 206. MindTree now has 51 $1 Million+; 10 $5 Million+; and 3 $10Million+ customers.- The Company added 321 people on a gross basis during Q2, taking our total peoplestrength to 5,746 as of September 30, 2008.- Attrition on a trailing 12-month period has reduced to 15% as compared to 16.3% inQ1 2008-09.- Utilization (including trainees) increased during the quarter to 70.2% as comparedto 65.6% in the previous quarter.- During the quarter, MindTree announced the creation of MindTree Foundation, anot-for-profit organization that will work globally in the area of supportingprimary education and differently-abled people, including the use of assistivetechnologies.- MindTree has established an office in France and has planned expansion into Mexicoto service large customers in the U.S. and Latin America.- MindTree was given the 2008 CIO 100 Award, instituted by IDG India's CIO magazine.- MindTree won the SAP ACE Award for Customer Excellence 2008 in the category of'Best Professional Services Sector Implementation - Mid-sized Enterprises'.Impact of Aztecsoft Financial Performance in Q2 2008-09 on MindTree- During the quarter, MindTree increased its equity stake in Aztecsoft Ltd. to79.9%. The date of acquiring significant control has been taken as of August 1,2008. Consequently, revenues of $12.5 Million and a profit of $0.25 Million havebeen added for consolidation in Q2.- We have received approval from the stock exchanges on the merger scheme andpropose to file an application with the High Court for merger of Aztecsoft withMindTree shortly. The merger is expected to be effective April 1, 2009.- The consolidated people strength of MindTree as of September 30, 2008 was 7,751.Speaking about the results, MindTree Chief Executive Officer Krishnakumar Natarajansaid, "We are pleased with the fact that we have been able to post strong results inthe second quarter despite the tough and challenging scenario that is gripping theworld economy. We are hopeful that the appropriate measures that we are taking andour relentless focus on creating customer value and people satisfaction will help ussustain good momentum." "The integration of Aztecsoft has had positive impact onsome deals we have won in recent months. We are confident that as a combined entityoffering differentiated services, we will be able to gain a bigger share of themarket."About MindTree Ltd.MindTree Ltd. is a global IT and R&D Services Company co-headquartered in the U.S.and India. With a passion for customer satisfaction, MindTree partners with itsclients to create a transparent, value-based relationship. Our domain expertsdeliver businessenabling solutions by leveraging a consulting-led, framework-basedand IP-driven approach. MindTree's IT Services business provides a range of servicesto CIOs across a variety of industry segments. Our R&D Services business works withTechnology companies to help build innovative products by providing ProductRealization services. MindTree has acquired an 80% equity stake in Aztecsoft Ltd., aglobal leader in outsourced product development and independent testing. The Companyintends to complete the merger by April 2009.MindTree was named among the Top 30 offshore service providers by the InternationalAssociation of Outsourcing Professionals and Fortune Magazine. Widely known for itsfocus on human capital development, MindTree has been consistently rated among themost admired employers by several industry surveys, including Hewitt Associates andMercer/TNS, and is also the winner of the Asian MAKE Award for knowledge management.MindTree has been selected as one of the Top 25 companies for good CorporateGovernance practices. MindTree is publicly listed in India. Please visit us atwww.mindtree.com.

Source: Express-Press-Release.com

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