Infosys Technologies (NASDAQ:INFY) Announces Results for the Quarter ended September 30, 2007

    Q2 Revenues Grew Sequentially by 10.1%; Annual Guidance Revised Upwards

    Revenues Expected to Grow 34.5% - 35.0% in Fiscal 2008

    BANGALORE, INDIA, October 11 /CNW/ - Infosys Technologies (NASDAQ:  INFY):


    Consolidated results for the quarter ended September 30, 2007

    --  Second quarter revenues at $ 1,022 million, up 37.0% from the
corresponding quarter last fiscal

    --  Earnings per American Depositary Share (ADS) increased to $ 0.48 from
$ 0.36 in the corresponding quarter last fiscal

    --  48 new clients were added during the quarter

    --  Gross addition of 8,543 employees (net 4,530) for the quarter

    --  80,501 employees as on September 30, 2007

    Outlook for the quarter ending December 31, 2007, and the fiscal year
ending March 31, 2008

    --  Consolidated revenues expected to be between $ 1,073 million and $
1,078 million for the quarter ending December 31, 2007 (YoY growth of 30.7% -
31.3%) and between $ 4.16 billion and $ 4.17 billion for the fiscal year
ending March 31, 2008 (YoY growth of 34.5% - 35.0%)

    --  Consolidated earnings per ADS(a) expected to be $ 0.51 for the
quarter ending December 31, 2007; (YoY growth of 30.8%) and between $ 1.98 and
$ 1.99 for the fiscal year ending March 31, 2008; (YoY growth in the range of
29.4% - 30.1%)

    (a) Including tax reversal of US$ 13 mn and US$ 29 mn in fiscal 2008 and
2007 respectively. Excluding the tax reversals the consolidated Earnings per
American Depositary Shares are expected to be between $ 1.96 to $ 1.97; YoY
growth of 32.4% to 33.1%

    Infosys Technologies Limited ("Infosys" or "the company") today announced
financial results for the second quarter ended September 30, 2007. Revenues
for the quarter aggregated $ 1,022 million, up 37.0% from $ 746 million for
the quarter ended September 30, 2006.

    "We have achieved yet another milestone by crossing one billion dollars
in revenues this quarter," said S. Gopalakrishnan, CEO and Managing Director.
"In an increasingly flat world, our unique business model combined with our
value proposition continues to help our clients grow profitably."

    During the quarter, 48 clients were added. Infosys drove growth in Europe
with new wins and strengthened existing client relationships with a focus on
increasing its share of the sourcing pie.

    Infosys' multimillion-dollar contract with Royal Philips Electronics of
the Netherlands was among the largest Finance & Accounting business process
outsourcing (BPO) engagements from India and has expanded Infosys' global
network into Poland and Thailand while strengthening its European operations.

    Growth in North America continued to be strong. To improve proximity to
clients in the region, Infosys opened its first Latin American subsidiary in
Monterrey, Mexico. The subsidiary, Infosys Technologies S. De RL De CV,
provides business consulting and information technology services as well as
key offerings in business process outsourcing, infrastructure management and
packaged solutions implementation.

    Infosys became the first company outside North America to join the
Financial Institution Shared Assessments Program, the financial services
industry's leading standards body that provides tools for evaluating the
security practices of information technology (IT) services providers. Infosys'
participation in the program is a reaffirmation of its commitment to providing
a secure outsourcing environment for clients.

    In the energy sector, one of the largest drilling contractors in the
Middle East has signed up Infosys to conduct a scoping exercise for SAP-based
Business Intelligence implementation.

    A leading global bank is using an Infosys-built application to mine and
assimilate distributed customer data, enabling it to tailor services for its
customers. A Fortune 500 manufacturer of pressure-sensitive adhesive labels
has signed up Infosys to build a global order management and sourcing
application to align its IT and business objectives and create global best
practices around vital business processes.

    In a multi-year engagement with a leading software vendor with worldwide
operations, Infosys is maintaining and enhancing core corporate applications
for finance, HR, legal and corporate services. A global pharmaceutical and
medical products company has selected Infosys' product engineering services to
enable it to rapidly innovate and bring high quality products to the market.

    In the UK, a leading retailer turned to Infosys to set up a governance
process and streamline project management to improve delivery effectiveness.

    Infosys is executing multiple research and product development projects
for a top telecom provider in Europe to help the client introduce products to
the market faster.

    "Our operating margins improved during the quarter despite the
appreciating rupee," said V. Balakrishnan, Chief Financial Officer. "We are
proactively hedging our currency exposures to mitigate this impact. Our
hedging position as of September 30, 2007, was $ 1.4 billion."

    About the Company

    Infosys (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. 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 80,000 employees in over 40 offices worldwide. Infosys is part of the
NASDAQ-100 Index. For more information, visit

    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 sustain our previous levels of
profitability including on account of the appreciation of the rupee against
the US dollar, our ability to manage growth, intense competition in
information technology, 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 we have 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, 2007, and Quarterly
Report on Form 6-K for the quarter ended June 30, 2007, and our other recent
filings. These filings are available at We may, from time to
time, make additional written and oral forward-looking statements, including
statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on our

    Infosys Technologies Limited and subsidiaries
    Consolidated Balance Sheets

                               (Dollars in millions except per share data)
                                                            As of
                                                   March 31,   September
                                                       2007      30, 2007
                                                           (1) (Unaudited)
    Current Assets
    Cash and cash equivalents                      $    1,403  $     1,837
    Investments in liquid mutual fund units                 6            4
    Trade accounts receivable, net of allowances          565          646
    Unbilled revenue                                       74          107
    Prepaid expenses and other current assets              48           81
    Deferred tax assets                                     2            2
    Total current assets                                2,098        2,677
    Property, plant and equipment, net                    738          914
    Goodwill                                              128          139
    Intangible assets, net                                 20           18
    Deferred tax assets                                    19           29
    Advance income taxes                                   33           77
    Other assets                                           37           43
    Total Assets                                   $    3,073  $     3,897
    Current Liabilities
    Accounts payable                               $        6  $         9
    Income taxes payable                                    4           64
    Client deposits                                         1            1
    Unearned revenue                                       72           91
    Other accrued liabilities                             272          342
    Total current liabilities                             355          507
    Non-current liabilities
    Other non-current liabilities                           1            -
    Minority interests
    Stockholders' Equity
    Common stock, $ 0.16 par value
      600,000,000 equity shares authorized,
      Issued and outstanding - 551,109,960 and             64           64
       555,785,001 as of March 31, 2006, and
       September 30, 2006, respectively
    Additional paid-in capital                            692          694
    Accumulated other comprehensive income                 90          334
    Retained earnings                                   1,871        2,298
    Total stockholders' equity                          2,717        3,390
    Total Liabilities And Stockholders' Equity     $    3,073  $     3,897
    (1) March 31, 2007 balances were obtained from audited financial

    Infosys Technologies Limited and subsidiaries
    Unaudited Consolidated Statements of Income

                               (Dollars in millions except per share data)
                             Three months ended       Six months ended
                                September 30,           September 30,
                                  2006        2007        2006        2007
    Revenues                      $746      $1,022      $1,406      $1,950
    Cost of revenues               423         591         812       1,160
    Gross profit                   323         431         594         790
    Operating Expenses:
    Selling and marketing
     expenses                       48          71          93         122
    General and
     expenses                       63          77         119         154
    Amortization of
     intangible assets               1           2           1           4
    Total operating
     expenses                      112         150         213         280
    Operating income               211         281         381         510
    Gain on sale of long-
     term investment                 -           -           1           -
    Other income, net               14          38          42         100
    Income before income           225         319         424         610
     taxes and minority
    Provision for income
     taxes                          26          48          49          76
    Income before minority
     interest                     $199        $271        $375        $534
    Minority interest                -           -           2           -
    Net income                    $199        $271        $373        $534
    Earnings per equity
       Basic                     $0.36       $0.48       $0.68       $0.94
       Diluted                   $0.35       $0.48       $0.66       $0.94
    Weighted average
     equity shares used in
     computing earnings
     per equity share
       Basic               551,938,696 568,376,262 550,964,911 568,376,262
       Diluted             564,858,570 570,449,774 563,832,673 570,478,084

For further information:

For further information: Infosys Technologies Limited Investor Relations
Shekar Narayanan, India, +91 (80) 4116 7744 or Sandeep
Mahindroo, USA, +1-646-254-3133 or Media
Relations Bani Paintal Dhawan, India, +91 (80) 2852 2408 or Peter Mclaughlin, USA, +1-213-268-9363

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