Infosys Technologies Announces Results for the Quarter ended December 31, 2004

Net income was $ 112 million ($ 71 million for the quarter ended December 31, 2003) and earnings per ADS was $ 0.42 ($ 0.27 for the quarter ended December 31, 2003*). * adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share Highlights Consolidated results for the quarter ended December 31, 2004 • Third quarter revenues at $ 423 million, up 53% from the corresponding quarter last fiscal • Earnings per American Depositary Share (ADS) increased to $ 0.42 from $ 0.27* in the corresponding quarter last fiscal • 38 new clients were added during the quarter • Net addition of 2,280 employees for the quarter • 35,229 employees as on December 31, 2004 • adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share Outlook for the quarter and the fiscal year ending March 31, 2005 • Consolidated revenues expected to be between $ 452 million and $ 454 million for the quarter ending March 31, 2005, (growth of 49% to 50%) and between $ 1,589 million and $ 1,591 million for the fiscal year ending March 31, 2005; growth of 50% • Consolidated earnings per ADS* expected to be $ 0.44 for the quarter ending March 31, 2005, (growth of 52%) and $ 1.53 for the fiscal year ending March 31, 2005; growth of 49% • adjusted for the two for one stock dividend distributed on July 6, 2004. Each ADS represents one equity share Large corporations in the Insurance and Healthcare industries are increasingly using the Infosys-pioneered Global Delivery Model to improve efficiency and customer focus. Infosys is working with a premier US-based wellness company and a provider of tools, applications and healthcare content to analyze, design and implement new systems that strengthen their internal processes. In a mission-critical assignment, the most distinguished preferred provider organization (PPO) network in the US selected Infosys to rewrite its core system. For one of the largest insurance companies in the US, Infosys developed an enterprise-wide road map for content management strategy. Infosys’ business solutions continued to enhance competitiveness for clients in the Retail industry. A US supermarket giant used Infosys’ services to address process improvement initiatives and program management issues. Infosys also completed a large end-to-end business process re-engineering initiative for a leading corporation in the food distribution business. A premier apparel marketer in the US partnered with Infosys for a business consulting engagement. Cash and cash equivalents and investments in liquid mutual funds, increased by $ 88 million during the quarter, from $ 545 million to $ 633 million, after incurring capital expenditure of $ 58 million.