Pentasoft Technologies year ending Financial Results

Declares Bonus and Dividend

Chennai 15th May 2002: Pentasoft Technologies, the IT software corporate of Chennai declared its Q4 Financial Results today recording a Consolidated Turnover of Rs.564.55 Crores for year ended March 31st 2002as against the corresponding period of the previous year figure of Rs.596.94 Crores. Net Profit for twelve months stands at Rs.101.98 Crores as against Rs.126.65 Crores.

   The turnover of Pentasoft Technologies (parent company) for the quarter ended March 31st, 2002 is at Rs. 91.13 Crores and the turnover of the subsidiaries of the company is Rs.36.64 Crore.

   The Company declared a Bonus of 2 shares for every 10 shares and a 50 paise dividend per share.

   During this quarter, the Company performed 66.8% through its ENTERPRISE DIVISION, and 19.4% through its ENGINEERING SERVICES DIVISION. The EDUCATION & TRAINING DIVISION contributed 13.8%.

BUSINESS SOFTWARE SEGMENT:

1. The Enterprise Division:

   Repeat Orders were secured from WhereHouse Inc., USA , a multi-billion dollar media retailer for application maintenance and enhancements development for the AS400 based retail application built earlier by Pentasoft.

   XSellsys, the leading eCRM vendor based in the USA had the vision to start with the web and now has the clear advantage over major CRM vendors like Siebel, Oracle and PeopleSoft, who are working to "web enable" their old client-server applications. Pentasoft has been actively involved in the development of this eCRM product for XSellsys. Repeat Orders are continuing to be received from XSellsys, USA for the eCRM product enhancement work.

  The Web based Membership Management System for the Financial Women’s Association, USA , is nearing completion. The application integrates eCommerce features, including a payment gateway. The Financial Women’s Association is a high-end group of Women CFOs and Financial Directors of major US corporates.

   New customers signed up during the quarter in the US includes some prestigious clients such as Vensoft, Universal Studios, State of Nebraska, STG, Michigan Department of Education, MindBank, JBA Consulting, Unlimited Innovation, Thomas Kelly, SVI Retail, among others.

   Pentasoft continued to be a major vendor for IBM's UK training in the area of Application Development and Internet technologies, imparting training to IBM's clients.

Pentasoft, UK       also started off our BEA agreement implementation with training provided onsite jointly with BEA to its clients in High Wycombe .

   The Cycosmos Project for ID Media, Berlin was successfully completed this quarter, within schedule.

   An MOU was signed with the international offices of the prestigious Arab Academy for Science and Technology & Maritime Transport , London for provision of Software Services, resources for online & off-line training. This involves partnering with Arab Academy to provide Software consultancy, infrastructure for offshore development, Online / off-line learning solutions, provision of infrastructure and resource for instructor based training for various audiences across Middle East, UK & Europe .

   The EBS Sudan project for providing PentaBank based solution for over 200 bank branches in Sudan , is nearing successful completion. The first ATM in Sudan was installed and integrated to PentaBank software during this quarter. Satisfied with the work done, further rollouts of PentaBank for more banks and branches is being finalised. More projects in Sudan are also being finalised in GIS, Education and Training and HealthCare.

   For Wana Artha Insurance, Indonesia , the PentaLife based insurance software solution is currently being implemented. High level design has been completed and the next phase of detailed design is to start shortly.

   For Hong Leong Assurance Berhad, Malaysia , a major software order has been finalised during the quarter. Pentasoft will supply its PentaLife software licence and implement the solution for all branch offices of Hong Leong Insurance. Hong Leong Assurance Berhad (HLA), a licensed composite insurance company, was incorporated in December, 1982. It is a fully owned subsidiary of Hong Leong Credit Berhad, a public listed company of the Kuala Lumpur Stock Exchange. The company has been consistently performing and strengthening its position in the insurance industry and is now one of the largest insurance companies in Malaysia .

   JAFMedia Bahrain is a part of the Al Matrook Group, and in active association with JAFMedia, Pentasoft has implemented a number of projects in Bahrain such as Bahrain Pipes, CYBARCO, ITC, Marmara Tiles, etc. JAFMedia is also establishing a training facility in Bahrain , in association with Pentasoft Technologies, to cater to the IT education market in Bahrain .

   Major Orders were finalised with International Vocational Training Board, Mauritius , to develop IT skills in Mauritius . In recognition of the good work done by Pentasoft, the Government of Mauritius has invited Pentasoft to establish an IT Park in Rose Belle, Port Louis, Mauritius , to establish a state-of-the-art Software Development Centre, IT Centre for Excellence and an IT University with all concurrent facilities such as Club House, Hostel, etc. The Detailed Project Report has been submitted to the Mauritius Government for funding of the project.

   Following a preliminary visit to assess the market, Kazhakasthan has been found to have good potential. In association with TAIB Bank, Kazhakasthan, a Pentasoft office has been established in Almaty, Kazhakasthan, to service the large oil and other companies based there.

   17 new clients were added to this division during this quarter.

The Engineering Division:

Malaysian University, Malaysia    Malaysian University   Malaysian Universityhas ordered two modules of DFMA software - design for assembly & design for manufacturing. Pentasoft has successfully completed installation and training of both the modules.

   Pentasoft, being the accredited vendor to Visteon, successfully completed Finite Element Analysis Project for the company based in United Kingdom .

   Karl Schmidt, Detroit have given a pilot project for CAD modeling and Detailing. Project is under progress.

   New CAD project is also underway from Ford Motors, Detroit . Pentasoft has bagged Remastering and Detailing project of V12 engine block through their off-shore service providing solutions.

   Bagged New DFMA sales order from NIIT, Bombay for two modules - design for assembly & design for manufacturing.

   The ongoing European relationship with Autodesk, Switzerland has now matured with our signing an MOU with Autodesk Inc. USA for providing skilled software engineers in the areas of software development and localisation.

   The Mazda project for Visteon was successfully completed during this quarter and New Meshing (CAE) project from Visteon Automotive Systems, UK has now started.

International Learning Services:

   The ILS Division has registered significant achievement during this quarter. The Division has signed up its first franchise center in Jakarta, Indonesia . Another major order from the Government of Mauritius to conduct IT Training Programmes in schools and Corporates was bagged by the ILS division during the year.

   The division has also bagged an order for a Multimedia Projects in Bahrain through its business associate Jafmedia. Discussion are on with University of Sudan to convert our e-learning platform Pentaguru as a digital library. Brazil telecom has approved the package and orders are expected for implementing the application and content development. Students of MNM Jain Engineering College , Chennai have enrolled for our online course on Programmable Logic Controller.

a. EDUCATION & TRAINING:

   The Education and Training division has registered more than 2000 enrollments during this quarter.

   The Corporate Training Department has provided training on Main Frame for the employees of Hexaware Technologies and Wipro on As / 400 during this quarter.

CEO speaks:

   Mr.D.Kannan, on the occasion of the results stated..

   "A very challenging year indeed. We have been able to divide our operations geographically. Malaysian operations are care-taking the Insurance Segment whilst the Mauritius operations encompass the Training and Software products. Financial products and Banking operations are clubbed under Singapore operations, and the Engineering Services are being handled at the Detroit and UK Centers. Australian and Mid-East operations care-take the ERP Segment. Other projects are being split between the African and East European Countries. United States offices handle the Off-shore development projects and On-site Consultancy. Not to forget that the domestic banking is handled by the Indian operations.
With the on-going structural alignment, the business manpower has been tuned to suit the requirement of the business operations. As on date the permanent employees strength stands at 1022 excluding the other categories of Contractual manpower, Just-in-Time manpower and case-to-case manpower.
The Company is aiming for a debt-free status in the near future. And, the costing strategies adopted has well poised the Company to look at a reasonable credit period with a margin of more than 20%. Targeting the medium and hi-end segment is the immediate business plan and with all this fine-tuning in place, Pentasoft is well poised to take on the industry for the next three years."