MindTree Consulting total income for Q1 2007-08 grows by 12% sequentially to $40.5 Million; Year over Year growth at 35.6%

MindTree Consulting Ltd., an international IT and R&D Services Company, announced its results today for the quarter ended June 30, 2007 as approved by its Board of Directors.

Financial Highlights for the First Quarter Ended June 30, 2007

- Strong revenue growth of 9.9% quarter over quarter (QoQ) and 32.5% year over year (YoY) in dollar terms. Revenues grew by 3.2% QoQ and 21.27% YoY in rupee terms.
- Operational results were strong with gross margins increasing by 12.8% YoY in spite of salary revisions for 53% of the people during the quarter.
- Profit after tax was $4.97 million (Rs 206 Million), which was significantly impacted by the sharp appreciation of the rupee.
- IT Services revenue grew by 36.4% and R&D Services by 20.3% YoY in dollar terms.
- Attrition for the quarter dropped to 13.6% as compared to 15% for the previous quarter. This attrition rate is one of the lowest in the industry.

Other Q1 2007-08 Highlights
- MindTree continued to see strong traction with customers. The company acquired 28 new customers, including two Fortune 500 companies, during the quarter ended June 30, 2007. MindTree’s active customer base has increased to 175 companies.
- Gross people addition during the quarter was 485, taking the total number of MindTree Minds to 4,432 as of June 30, 2007.
- During the quarter, MindTree signed an agreement with CIT Group Inc. (NYSE: CIT), a leading global provider of commercial and consumer financial solutions, to set up a development center at its Bangalore campus.
- MindTree was ranked 6th in the Great Places to Work survey conducted by Businessworld and Great Place to Work Institute in April 2007.

Guidance for FY 2007-08
- The revenue guidance for FY 2007-08 remains unchanged at $178-180 Million, indicating a growth of 36% at the higher end.
- As a result of the appreciation of the rupee, MindTree has revised its profit after tax guidance for the fiscal 2007-08 to be in the range of $22.5 to $22.6 Million from the previously announced $25.1 to $25.2 Million.

Commenting on the Q1 2007-08 results, MindTree Consulting Chairman & Managing Director Ashok Soota said, “We are pleased with our revenue growth in the first quarter of this fiscal year. We continue to see strong traction with our customers in both our businesses and maintain our revenue guidance for the year. The adverse impact of the continued appreciation of the rupee against the dollar is a matter of concern. MindTree’s business fundamentals, however, continues to remain strong.”


About MindTree Consulting
Founded in 1999, MindTree Consulting is an international IT and R&D services company with development centers in India and the U.S. The Company provides end-to-end project execution through OneShore™, a hybrid delivery model.

MindTree has grown to a team of 4,962 professionals (as of July 24, 2007), and offers IT services in application development and maintenance, business intelligence solutions, ERP and supply chain management, testing, Mainframe and iSeries support and enhancement. MindTree also provides R&D Services in the areas of product and semiconductor design, operating systems, protocol engineering, embedded applications, product testing and licensing of intellectual property.

In 2006, MindTree was a recipient of the MAKE award for excellence in the area of Knowledge Management, and was named the leading service provider in the “Human Capital Development” category by Global Services magazine. In 2007, MindTree has been rated among the world’s top 100 outsourcing service providers by the International Association of Outsourcing Professionals. MindTree has consistently been chosen as one of the best employers in several independent surveys during the last three years. For more information, please visit www.mindtree.com

Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause our actual results to differ materially from those in such forward-looking statements. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.