Infosys Technologies Announces Results for the Quarter and Year Ended March 31, 2007




    Fiscal 2008 revenues expected to grow 28% - 30% to reach $4 billion

    Reports Fiscal 2007 revenues of $3.1 billion; YoY growth of 44%

    BANGALORE, INDIA, April 13 /CNW/ - Infosys Technologies Ltd.
(NASDAQ:  INFY):

    Highlights

    Consolidated results for the quarter ended March 31, 2007

    --  Fourth quarter revenues at $863 million, up by 45.5% from the
corresponding quarter last fiscal

    --  Earnings per American Depository Share (ADS)(a) increased to $0.46
from $0.28 in the corresponding quarter last fiscal; YoY growth of 64.3%

    --  34 new clients were added during the quarter by Infosys and its
subsidiaries

    --  Gross addition of 5,992 employees (net 2,809) for the quarter by
Infosys and its subsidiaries

    --  72,241 employees as on March 31, 2007 for Infosys and its
subsidiaries

    (a) The tax provision for quarter ended March 31, 2007 and fiscal 2007
includes a tax reversal of $29 million. Excluding this the earnings per share
for the quarter and year ended March 31, 2007 would have been $0.41 and $1.48
resulting in a YOY growth of 46% and 45% respectively.

    Senior Management Changes (Effective June 22, 2007)

    --  Mr. Nandan M. Nilekani becomes the Co-Chairman of the Board

    --  Mr. S. Gopalakrishnan assumes the role of Chief Executive Officer and
Managing Director

    --  Mr. S. D. Shibulal assumes the role of Chief Operating Officer of the
company

    Outlook for the Quarter Ending June 30, 2007 and Fiscal 2008

    Quarter ending June 30, 2007

    --  Consolidated revenues are expected to be between $904 million and
$908 million; YoY growth of 37.0% - 37.6%

    --  Consolidated earnings per ADS expected to be $0.41; YoY growth of
28.2%

    Fiscal year ending March 31, 2008

    --  Consolidated revenues are expected to be in the range of $3,953
million and $4,016 million; YoY growth of 28.0% - 30.0%

    --  Consolidated earnings per ADS(b) expected to be between $1.86 and
$1.89; YoY growth of 25.7% - 27.7%

    (b) Excluding tax reversal of $29 million in fiscal 2007

    "Our revenues grew by around US$1 billion this year," said Nandan M.
Nilekani, CEO and Managing Director. "The global IT services industry
continues to show strong growth with exciting opportunities and Infosys is
well positioned to take advantage of this."

    As businesses the world over sought to become more competitive, Infosys
offered strategic technology solutions and business insights to help companies
in leading industry verticals shift their operational priorities and win in an
increasingly 'flat' business world.

    In the Retail sector, Infosys won a large project for integrating the
PeopleSoft Human Capital Management (HCM) systems of the third largest
broadline retailer in the US. The integrated system will enable the client to
manage HR, payroll and benefits data effectively.

    An upscale retailer providing quality discounted merchandise in over
1,300 stores across 47 US states turned to Infosys for a scalable solution to
extend its custom Performance Management application to a larger employee
base. The automated solution has halved the time spent on generating
performance scores and computing employee compensation.

    Infosys implemented a new order management system for the world's largest
employee-owned photography company that will significantly reduce possible
financial leakage.

    In the High-tech Manufacturing sector, one of the world's largest IT
management software providers is working with Infosys to integrate technical
support functions across its recent acquisitions. Infosys' integrated
performance management and compensation solution for a top independent
software vendor will enable the company to streamline employee rewards,
ratings and assessment while helping its employees and managers enjoy a better
user experience.

    Infosys made deeper inroads in the Energy sector. A leading oilfield
services company supplying technologies, project management and performance
optimization solutions to the international oil and gas industry has
approached Infosys to establish a strategic program to improve the efficiency
of its sales force.

    Industry leaders in various sectors are using Infosys' Independent
Validation Services to boost the predictability of their applications. A
leading specialty beverage brand chose Infosys to build a Testing Center of
Excellence (TCOE), which brought all its testing activities -- including
automation and performance testing -- under a single umbrella. The global
leader in digital signal processing and analog technologies partnered with
Infosys to achieve test automation for in-house applications, saving up to 10%
of investment on IT projects and achieving faster time to market.

    "The rupee appreciated against all major currencies during the quarter,"
said V. Balakrishnan, Chief Financial Officer. "Our robust financial model
allows us to balance the investments required in the business and
profitability while focusing on growth. Our liquidity position continues to be
strong with cash and cash equivalents reaching US$1.4 billion."

    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 72,000 employees in over 39 offices worldwide.
Infosys is part of the NASDAQ-100 Index. For more information, visit
www.infosys.com.

    Safe Harbor

    Certain statements in this release concerning our future growth prospects
are forward-looking statements, within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended, which involve a number of risks and
uncertainties that could cause actual results to differ materially from those
in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties
regarding the success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to manage growth, intense competition in
IT, business process outsourcing and consulting services including those
factors which may affect our cost advantage, wage increases in India, our
ability to attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, industry segment concentration, our ability to
manage our international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks or system failures, our
ability to successfully complete and integrate potential acquisitions,
liability for damages on our service contracts, the success of the companies
in which Infosys has made strategic investments, withdrawal of governmental
fiscal incentives, political instability and regional conflicts, legal
restrictions on raising capital or acquiring companies outside India, and
unauthorized use of our intellectual property and general economic conditions
affecting our industry.

    Additional risks that could affect our future operating results are more
fully described in our United States Securities and Exchange Commission
filings including our Annual Report on Form 20-F for the fiscal year ended
March 31, 2006, our Quarterly Reports on Form 6-K for the quarters ended June
30, 2006, September 30, 2006 and December 31, 2006 and our other recent
filings. These filings are available at www.sec.gov. Infosys may, from time to
time, make additional written and oral forward-looking statements, including
statements contained in the company's filings with the Securities and Exchange
Commission and our reports to shareholders. The company does not undertake to
update any forward-looking statements that may be made from time to time by or
on behalf of the company.

    
    Infosys Technologies Limited and subsidiaries
    Unaudited Consolidated Balance Sheets

                               (Dollars in millions except per share data)
                                                          As of
                                                 March 31,    March 31,
                                                     2006         2007
                                                --------------------------
                                                          (1)
    ASSETS
    Current Assets
    Cash and cash equivalents                           $889       $1,403
    Investments in liquid mutual fund units              170            6
    Trade accounts receivable, net of allowances         361          565
    Unbilled revenue                                      48           74
    Prepaid expenses and other current assets             40           50
    Deferred tax assets                                    1            2
                                                --------------------------
    Total current assets                               1,509        2,100
    Property, plant and equipment, net                   491          738
    Goodwill                                               8          128
    Intangible assets, net                                --           20
    Deferred tax assets                                   13           19
    Advance income taxes                                  18           33
    Other assets                                          27           35
                                                --------------------------
    Total Assets                                      $2,066       $3,073
                                                --------------------------
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities
    Accounts payable                                      $3           $6
    Income taxes payable                                  --            4
    Client deposits                                        2            1
    Unearned revenue                                      44           72
    Other accrued liabilities                            160          274
                                                --------------------------
    Total current liabilities                            209          357
    Non-current liabilities
    Other non-current liabilities                          5            1
    Minority interests                                    15            -
    Stockholders' Equity
    Common stock, $ 0.16 par value 600,000,000
     equity shares authorized, Issued and
     outstanding - 551,109,960 and 571,209,862
     as of March 31, 2006 and March 31, 2007,
     respectively                                         31           64
    Additional paid-in capital                           410          692
    Accumulated other comprehensive income                 9           88
    Retained earnings                                  1,387        1,871
                                                --------------------------
    Total stockholders' equity                         1,837        2,715
                                                --------------------------
    Total Liabilities And Stockholders' Equity        $2,066       $3,073
                                                --------------------------
    (1) March 31, 2006 balances were obtained from audited financial
     statements
    

    
    Infosys Technologies Limited and subsidiaries
    Unaudited Consolidated Statements of Income

                               (Dollars in millions except per share data)
                          Three months ended       Year ended March 31,
                               March 31,
                       ------------------------- -------------------------
                                                        2006
                              2006         2007     (Audited)        2007
                       ------------ ------------ ------------ ------------
    Revenues                  $593         $863       $2,152       $3,090
    Cost of revenues           354          497        1,244        1,777
                       ------------ ------------ ------------ ------------
    Gross profit               239          366          908        1,313
                       ------------ ------------ ------------ ------------
    Operating
     Expenses:
    Selling and
     marketing
     expenses                   34           62          136          209
    General and
     administrative
     expenses                   49           66          173          249
    Amortization of
     intangible assets           -            1           --            3
                       ------------ ------------ ------------ ------------
    Total operating
     expenses                   83          129          309          461
                       ------------ ------------ ------------ ------------
    Operating income           156          237          599          852
    Gain on sale of
     long term
     investment                  -            -           --            1
    Other income, net           16           28           31           83
                       ------------ ------------ ------------ ------------
    Income before
     income taxes and
     minority interest         172          265          630          936
    Provision for
     income taxes               18            6           70           84
                       ------------ ------------ ------------ ------------
    Income before
     minority interest        $154         $259         $560         $852
    Minority interest            2            -            5            2
                       ------------ ------------ ------------ ------------
    Net income                $152         $259         $555         $850
                       ------------ ------------ ------------ ------------
    Earnings per
     equity share(c)
      Basic                  $0.28        $0.46        $1.02        $1.53
      Diluted                $0.27        $0.45        $0.99        $1.50
    Weighted average
     equity shares
     used in computing
     earnings per
     equity share(c)
      Basic            547,386,214  559,944,338  543,160,222  554,018,739
      Diluted          561,264,860  569,893,498  557,967,786  566,110,582
    (c) Adjusted for stock split
    




For further information:

For further information: Infosys Technologies Ltd. Investor Relations:
Shekhar Narayanan, India, +91 (80) 4116 7744 shekarn@infosys.com Sandeep
Mahindroo, USA, 646-254 3133 sandeep_mahindroo@infosys.com or Media Relations:
Bani Paintal Dhawan, India, +91 (80) 2852 2408 Bani_Dhawan@infosys.com Peter
Mclaughlin, USA, 213-268 9363 Peter_Mclaughlin@infosys.com

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INFOSYS TECHNOLOGIES LTD.

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