Datamatics Technologies Limited Completes Amalgamation, Renamed as Datamatics Global Services Limited

29 January 2009, Mumbai: Datamatics Technologies Limited (BSE: 532528, NSE: “DATAMATICS”), one of India's leading Business Process Outsourcing Organizations, announced today that it has successfully amalgamated with itself the operations of Datamatics Limited, a Group company engaged in software services. The merged organization has been renamed as Datamatics Global Services Limited, reflecting its global customers and delivery capabilities.

Datamatics had announced that the BPO and software services divisions would be amalgamated in June 2008. The systems, processes and teams of both organizations are being integrated. As per the scheme of amalgamation, shareholders of Datamatics Limited received 1.21 fully-paid up equity shares of Datamatics Technologies Limited of Rs.5 each for every 1 fully paid up equity share of Rs.10 each of Datamatics Limited. The new organization has shown steady growth in consolidated revenue and net profits in the past few quarters. With the amalgamation completed, Datamatics Global Services is expected to show improved financial performances in the next few quarters as it realizes the benefits of the merged entity and new business wins happen.

In view of the changes in the organization, the senior management team has embarked on an intensive customer-interfacing exercise that will last for a few weeks to brief senior executives at the customer organizations about the benefits of collaborating with the new organization.

Major customers and stakeholders of both the erstwhile organizations have expressed their confidence in the strong capabilities of the merged organization. A few existing customers have already expanded the scope of work after seeing the benefits of partnering with an end-to-end IT and BPO services provider. “We are now positioned as a “one-stop-shop” offering end-to-end solutions spanning consulting, technology architectures and business process management, including both IT and BPO services for global customers. We have already seen benefits like better control on operations, reduction of cost, better profitability, greater flexibility, stronger delivery capability and other related benefits due to size and scale. We will pass on the benefits to our customers adding to their competitive edge.” said Rahul L. Kanodia, Vice Chairman and CEO.

“Customers are increasingly expecting offshore service providers to transform their businesses. Our solutions can help customers' businesses develop and launch platforms on which they can compete better. As a one-stop solutions provider, we are now better positioned to meet these requirements. In addition, we would see long-term advantages like wider range of solutions, broader market reach, cross-leveraging of skills, higher R&D focus and process efficiencies,” added Kanodia.

About Datamatics Global Services Limited:

Datamatics Global Services Limited is India's premier IT Software Development & Consulting and Business Process Outsourcing Organizations. Datamatics' team of 2,500 (plus 1,400 Knowledge Associates) has executed over 2,100 projects across industry verticals and technologically-aligned competencies in over 60 countries. The company’s international clients have included top 25 Fortune 500 companies. Datamatics is certified for ISO 9001-2000, ISO 27001 and SAS 70, and has been assessed at SEI CMMi – Level 5 (QAI), P-CMM – Level 5 (QAI). Datamatics is the First & Only Indian Services Company to win the International Asia Pacific Quality Award.

For editorial enquiries, contact:

Brian Lobo
brian.lobo@datamatics.com
Tel: +91 (22) 6102 0923, +91 (22) 6102 0933

Bijesh Kamath
bijesh.kamath@datamatics.com
Tel: +91 (22) 6102 0918, +91 (22) 6102 0933

Safe Harbour:

Some of the statements in this update that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.