Pentasoft Technologies Quarter 3 Financial Results

Chennai 25th January 2002:

   Pentasoft Technologies, the IT software corporate of Chennai declared its Q3 Financial Results on the 25th of Jan 2002recording a Turnover of Rs.433 Crores for nine months ended December 31, 2001 as against the corresponding period of the previous year figure of Rs.429 Crores. Net Profit for nine months stands at Rs.84.84 Crores as against Rs.96.86 Crores.

   The turnover of Pentasoft Technologies (parent company) for the quarter ended December 31, 2002 is at Rs. 90 Crores and the turnover of the subsidiaries of the company is Rs.54 Crore. Gross Profit as on 9 months ended is at Rs.154.20 Crores as against Rs.192.66 Crores for the corresponding period last year.

   The BUSINESS SOFTWARE SEGMENT of PENTASOFT comprises of the ENTERPRISE DIVISION and ENGINEERING SERVICES DIVISION During this quarter, the Company performed 66% through its ENTERPRISE DIVISION, and 19% through its ENGINEERING SERVICES DIVISION. The EDUCATION& TRAINING DIVISION contributed 15%.

   Mr. Peter Waller, former Marketing Director IBM, UK and Exec VP of Hitachi Data Systems, Europe joins PENTASOFT as Non Executive Director in Pentafour Software UK Ltd.

BUSINESS SOFTWARE SEGMENT:

1. The Enterprise Division:

   Pentasoft’s Life Insurance Solution, PentaLife has received Oracle Certification as an approved III Party Insurance solution.

   Maintenance support for IBM environment for a multi-billion dollar media retailer corporate named WhereHouse Inc in USA is in progress during the current quarter. Xsellsys in USA is another reputed client of this quarter for whom Pentasoft provides solutions for product enhancement on CRM. A fourth repeat order for wireless enabling the Xsellsys eCRM application has been finalized during the course of the quarter.

   SAP implementation orders were icing in the cake during the quarter specifically from the Government of Australia. Zurich National Life Assurance in Thailand completed their successful implementation/installation of the Group Life Insurance and Individual Life Insurance Systems.
The ERP solution for Bank of Sudan is in progress enhanced by an agreement with Rubicund Technologies of Nigeria on the opportunities in Banking and Health care solutions.

   Comprehensive banking solution for the various banks under the contract with EBS – SUDAN is currently under installation and is expected to finish ahead of schedule.

   Pentasoft’s Trade Finance solution, PentaTrade has been installed and in progress with Al-Ghurair UAE coupled with final discussion in progress with large insurance multinationals in Malaysia , Taiwan and Indonesia .

   Black Book Project for Calibra Corporation, USA is in its final stages of Phase I and the planning stage for the Phase II inclusive of a roll out of the Black Book Referral Solution is on the cards.

   Implementation of Avatar Development System, the next generation e-commerce component for IDMedia in Germany has been completed. This will help users to develop multiple manifestations of themselves for use in various contexts like online shopping, online chat, online video conferencing etc,.

   JAFMedia Bahrain is actively gearing its web based multimedia solution through PentaGuru the e-learning solution for the web subscribers of Batelco. This is an initiative of the Ministry of Education.

   HP eStore, a web enabled online ordering system was successfully implemented within a record time for Jacky’s Electronics in UAE to meet the requirements towards the major trade festival during the quarter.

   The customer list of this segment increased to 238 after adding 14 new clients.

2. Engineering Services:

   Ford Motors and the entire group of Legacy Data Migration has shortlisted Pentasoft for their off-shore service providing solutions.

   Pentasoft became the accredited vendor to Visteon and bagged its 1st order for Finite Element Analysis. The Company is based in United Kingdom .
A pilot project in photogrammetry for Ordinance Survey (OS) for Simmons Mapping in UK is underway.

   Gaeasoft Technologies (P) Ltd., Bangalore, India has tied up with Pentasoft towards the positioning and marketing of the latter’s business products and GIS capabilities with specific concentration on Vehicle Tracking with GPS.
Successful completion of the world bank project on Hazard Mitigation & Disaster Management of the AP govt. through Delft Hydraulics in Netherlands . CAD projects are also underway from Caterpillar and Ashok Leyland.

   The customer list of this segment increased to 46 after adding 6 new clients.

EDUCATION & TRAINING:

   Training operations as part of the Connectivity Agenda, Columbia commenced through the franchisee centre at Bogota, Colombia . A total of 1300 students will be trained by March 2003.

   In UK , Pentasoft is partnering Sollyhull University and its IT organization Sol Systems to offer Engineering and Multimedia courses. Through this initiative, Pentasoft and Sol systems shall jointly develop curriculum that will enable our centre offer courses that are current and industry relevant.

   Pentasoft is the resource partner to GBM and instructors from Pentasoft address the training requirement of the clients of GBM, Bahrain . Some of the major corporates we have given training through GBM: Coca Cola, Bahrain Society of Engineers, Avaya Communications, Bahrain National Insurance, Ministry of Commerce& Bahrain Natural Gas Company.

   The Industrial and Vocational Training Board of Government of Mauritius awarded a contract to train 300 graduates to enable them gain from the opportunity in Information Technology. Repeat order for 500 students expected in the next quarter.

   Discussions are on with leading Institutions like : University of South Africa [ UNISA]; Higher College of Technology [Abu Dhabi]; Macau University of Science and Technology, Macau .

   Pentasoft has presented to the Kazak American University a proposal to offer continuous learning programs to its students.

   The first batch of training on VLSI with Mentor Graphics certification completed and subsequent batches are in progress.

   Training to Corporates RITES, Gujarat Government& AP Governments, ONGC were given during this quarter.

   During the Quarter, 3860 students were trained out of the centers. The area of concentration for the training centers will be more on medium and high end courses in churning out new entrepreneurs who will handle franchised training centers.

CEO speaks,

   Mr.D.Kannan, the Chief Executive Officer of Pentasoft Technologies, about the quarter stated, "In comparison with the past six months, the IT market scenario has started to show silver streaks. Amidst this recovery, Pentasoft’s concentration will be emphasized on value added projects, with specific concentration on off-shore. An approximation of 20+% is what is my estimated margins and a reasonable period of credit extended to our debtors. The market is set to reap benefits on the financial services sector with enhanced skills on IBM Mainframe and we are expecting our business to add considerable monetary value into this and growth on the overall bottomline."