Infosys Technologies, NASDAQ:INFY, Announces Results for the Quarter Ended September 30, 2005; Half-Year FY06 Revenue Reaches US$ 1 Billion

Guidance revised upwards. Revenues expected to grow 34% in fiscal2006

Highlights

Consolidated results for the quarter ended September 30, 2005

-- Second quarter revenues at $ 524 million, up 38.3% from the corresponding quarter last fiscal

-- Earnings per American Depositary Share (ADS) increased to $ 0.51 from $ 0.36 in the corresponding quarter last fiscal

-- 34 new clients were added during the quarter

-- Gross addition of 8,026 employees for the quarter (Net addition of 6,390 employees)

-- 46,196 employees as on September 30, 2005

Outlook for the quarter ending December 31, 2005 and the fiscalyear ending March 31, 2006

-- Consolidated revenues expected to be between $ 556 million and $ 558 million for the quarter ending December 31, 2005 (YoY growth of 31.4% - 31.9%) and $ 2.14 billion for the fiscal year ending March 31, 2006; (YoY growth of 34.4%)

-- Consolidated earnings per ADS expected to be $ 0.53 for the quarter ending December 31, 2005, (YoY growth of 26.2%) and between $ 2.04 and $ 2.05 for the fiscal year ending March 31, 2006; (growth of 29.9% - 30.6%)

Infosys Technologies Limited ("Infosys" or "the company") todayannounced financial results for its second quarter ended September 30,2005. Revenues for the quarter aggregated $ 524 million, up 38.3% from$ 379 million for the quarter ended September 30, 2004.

"We have seen robust growth during the quarter due to oureffective focus on offering a broad array of services to our clients,"said Nandan M. Nilekani, CEO, President and Managing Director. "Ittook us the whole of fiscal 2004 to reach a revenue of US$ 1 billion.We reached the same level in the first six months of this year."

"During this quarter we recruited 8,026 employees (gross), whichis the highest ever during any quarter," said S. Gopalakrishnan,Member of the Board and COO. "Our investments in creating aworld-scale global education center coupled with our spend oneducation and research has enabled us to scale up rapidly."

Infosys won its single largest multi-year, multi-million dollarcontract from ABN AMRO to develop, support and enhance a wide spectrumof applications. This reinforces our belief that the offshoring oflarge deals is a mega trend. In a continuing partnership with a Swissmarket leader in IT outsourcing and business service provisioningservices, Infosys is providing a core banking services platform to theprivate banking sector in Europe. Further, Infosys entered into ahigh-volume, multi-year strategic engagement with a large hi-techcompany to unify its IT systems across multiple branches andsubsidiaries.

Infosys is helping clients realize value from investments inEnterprise Resource Planning (ERP), Customer Relationship Management(CRM) and other enterprise applications for business transformation.

Leading companies in the banking, capital markets and financialservices sectors are seeking Infosys' domain expertise andindustry-specific solutions to address their business problems. Aleading diversified financial services company engaged Infosys todefine a strategy for streamlining systems and processes to improveoperational efficiency. Infosys' Operational Risk Management Solutionis enabling an investment management and outsourcing company to createan enterprise-wide framework to define, identify, measure, mitigateand report risk across key client business lines.

Infosys' Independent Validation Services are enhancing thecompetitiveness of key clients across industries, including aninternational leader in investment banking and financial services anda leading Europe-based retailer.

"The ABN AMRO deal, signed this quarter, signifies the entry ofInfosys into the arena of large, global, multi-year outsourcingcontracts and is an endorsement of our competitive business model,"said S. D. Shibulal, Member of the Board and Head - Sales andDelivery. "Our strong customer service engine is enabling us toaddress client needs effectively."

"The pricing environment is stable with an upward bias. We havemaintained margins despite record hiring of employees during thequarter," said T. V. Mohandas Pai, Member of the Board and CFO."Liquid assets have gone up by $ 114 million. The rupee hasdepreciated during the quarter creating a more benign marginenvironment."

About the company

Infosys is a leading global technology services firm founded in1981. Infosys provides end-to-end business solutions that leveragetechnology for our clients across the entire software life cycle:consulting, design, development, re-engineering, maintenance, systemintegration, package evaluation and implementation. In addition,Infosys offers software products to the banking industry, as well asbusiness process management services through its majority-ownedsubsidiary, Progeon. For more information, contact V. Balakrishnan at+91 (80) 2852 0440 in India or visit us on the World Wide Web atwww.infosys.com.

Safe Harbor

Certain statements in this release concerning our future growthprospects are forward-looking statements, which involve a number ofrisks and uncertainties that could cause actual results to differmaterially from those in such forward-looking statements. The risksand uncertainties relating to these statements include, but are notlimited to, risks and uncertainties regarding the success of ourinvestments, risks and uncertainties regarding fluctuations inearnings, our ability to manage growth, intense competition in IT,business process outsourcing and consulting services including thosefactors which may affect our cost advantage, wage increases in India,our ability to attract and retain highly skilled professionals, timeand cost overruns on fixed-price, fixed-time frame contracts, clientconcentration, restrictions on immigration, industry segmentconcentration, our ability to manage our international operations,reduced demand for technology in our key focus areas, disruptions intelecommunication networks or system failures, our ability tosuccessfully complete and integrate potential acquisitions, liabilityfor damages on our service contracts, the success of the companies inwhich Infosys has made strategic investments, withdrawal ofgovernmental fiscal incentives, political instability and regionalconflicts, legal restrictions on raising capital or acquiringcompanies outside India, and unauthorized use of our intellectualproperty and general economic conditions affecting our industry.Additional risks that could affect our future operating results aremore fully described in our United States Securities and ExchangeCommission filings including our Annual Report on Form 20-F for thefiscal year ended March 31, 2005 and quarter ended June 30, 2005.These filings are available at www.sec.gov. We may, from time totime, make additional written and oral forward-looking statements,including statements contained in the company's filings with theSecurities and Exchange Commission and our reports to shareholders. Wedo not undertake to update any forward-looking statements that may bemade from time to time by or on our behalf.

Infosys Technologies Limited and subsidiaries
Unaudited Consolidated Balance Sheets

(Dollars in millions)

As of
-------------------------
March 31, September 30,
2005 (1) 2005
-------------------------
ASSETS
Current Assets
Cash and cash equivalents $410 $334
Investment in liquid mutual fund units 278 531
Trade accounts receivable, net of allowances 303 304
Deferred tax assets 2 2
Prepaid expenses and other current assets 35 38
Unbilled revenue 32 41
-------------------------
Total current assets 1,060 1,250
Property, plant and equipment, net 352 435
Goodwill 8 8
Deferred tax assets 8 9
Other assets 26 32
-------------------------
Total Assets $1,454 $1,734
-------------------------
-------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $1 $1
Client deposits 7 2
Other accrued liabilities 124 128
Income taxes payable 23 18
Unearned revenue 20 40
-------------------------
Total current liabilities 175 189
Non-current liabilities
Preferred stock of subsidiary 21 -
Other non-current liabilities 5 5
Minority Interests - 12
Stockholders' Equity
Common stock, $ 0.16 par value 300,000,000
equity shares authorized, Issued and
outstanding - 270,570,549 and 272,659,512
equity shares as of March 31, 2005 and
September 30, 2005, respectively 31 31
Additional paid-in capital 266 335
Accumulated other comprehensive income 33 25
Retained earnings 923 1,137
-------------------------
Total stockholders' equity 1,253 1,528
-------------------------
Total Liabilities and Stockholders' Equity $1,454 $1,734
-------------------------
-------------------------

(1) March 31, 2005 balances were obtained from audited financial
statements


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,
2004 2005 2004 2005
---------------------------------------------------
Revenues $379 $524 $713 $1,000
Cost of revenues 214 297 401 571
---------------------------------------------------
Gross profit 165 227 312 429
---------------------------------------------------
Operating
Expenses:
Selling and
marketing
expenses 26 35 50 67
General and
administrative
expenses 30 46 56 83
Amortization of
intangible assets - - 1 -
---------------------------------------------------
Total operating
expenses 56 81 107 150
---------------------------------------------------
Operating income 109 146 205 279
Other income, net 6 9 6 16
---------------------------------------------------
Income before
income taxes and
minority interest 115 155 211 295
Provision for
income taxes 18 16 31 34
---------------------------------------------------
Income before
minority interest 97 139 180 261
Minority Interest - 1 - 1
---------------------------------------------------
Net income $97 $138 $180 $260
---------------------------------------------------
---------------------------------------------------
Earnings per
equity share
Basic $0.36 $0.51 $0.68 $0.96
Diluted $0.35 $0.49 $0.66 $0.93
Weighted average
equity shares
used in computing
earnings per
equity share
Basic 266,262,865 270,687,619 265,781,580 270,134,731
Diluted 272,121,905 278,304,058 271,186,823 277,695,111