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T-1/A,SRIPATI NAGAR C/O JK UDAIPUR UDYOG LTD P.O-C.F.A 313021 DIST UDAIPUR ..RAJ Welcome to Cognizant Technology Solutions. "The Best Small Company in America" We are a leading provider of e-business solutions and application management services to Fortune 500 and Blue Chip companies in the US and Europe, with more than 2,000 technical professionals. Our expertise extends across a wide range of technologies encompassing Internet, data warehousing and object-oriented software development, as well as legacy and client-server applications. Our industry experience extends to providing solutions to several information intensive industries such as the financial, healthcare, retail and information services. We specialize in delivering high-quality, cost-effective full lifecycle solutions for businesses with intensive information processing needs. Our on-site/offshore virtual team model of IT consulting combines the best of India with the best of the US and Europe. Our customers get reduced costs and improved time to market, expertise in leading edge technology, and improved quality. Cognizant is assessed by KPMG at SEI-CMM Level 4 for quality and we are among the small handful of organizations worldwide to achieve this remarkable distinction. Our unique version of the classic value proposition of better, faster, and less expensive development and management is compelling to our many Fortune 500 clients in the US and Europe, most of whom maintain long-term and growing relationships with us. Our clients regard us as a partner helping them to achieve their long-term objectives. Founded in 1994 and publicly listed in 1998 (Nasdaq:CTSH), Cognizant started from day one as a division of Dun & Bradstreet doing full lifecycle projects and not staff supplementation like other offshore firms. This background today results in Cognizant being able to provide 24x7 project management, and to staff a world class R&D organization that helps clients manage through rapid technology change. We are the employer of choice in India and according to Forbes magazine, The Best Small Company in America. ------------------------------------------------------------------------------- Copyright © 1999 Cognizant Technology Solutions. For further information, contact webinfo@cognizant.com. Cognizant Technology Solutions Reports Record Revenue and Profitability in Second Quarter *Revenue Increase 48%, Net income increases 57% *Sequential Revenue growth accelerates to 17% Teaneck, NJ – July 18, 2000 – Cognizant Technology Solutions Corp. (Nasdaq: CTSH), a leading e-business and application management solutions provider, today announced financial results for the second quarter ended June 30, 2000. Revenue for the second quarter of 2000 increased 48 percent to $31.8 million, from $21.5 million in the second quarter of 1999. Revenue increased 84 percent excluding Y2K related revenue from the prior year period. Net income for the quarter ended June 30, 2000 increased 57 percent to $4.0 million, as compared to $2.6 million in the 1999 second quarter. Diluted earnings per share increased 54 percent to $0.20 from $0.13 in the year ago period. “Our 17 percent sequential revenue increase reflects better than expected growth of our e-business services,” said Kumar Mahadeva, Chairman and Chief Executive Officer. “This quarter we won an unprecedented 15 new clients, while the size of many projects grew significantly. Additionally, to accommodate our robust pipeline we opened our second development center purely devoted to e-business in Bangalore, India and added 160 experienced engineers to our staff.” Mahadeva added, “We are enthusiastic about the initial success of our telecom/wireless services group, which has secured its first three customers, and look forward to its continued contribution. In addition, our strategic partnerships such as the e-business alliance with Viant are proving fruitful and have lead to increased visibility and a record pipeline. As a result, we are confident in our ability to exceed top-line analyst projections and to deliver double digit sequential revenue growth, which will further improve year over year comparisons as we go through the remainder of the year. “Over 95 percent of our revenue base is attributable to traditional companies establishing a new economy presence,” stated Gordon Coburn, Chief Financial Officer. “Our client relationships continue to be long term in nature and are distinguished by a high degree of customer satisfaction. As a result, our DSOs continued to be very strong at 50 days.” “Operating margin expanded to 19 percent while the company continued to steadily invest in its future. We increased our sales force and established new regional offices in Dallas and Minneapolis. Additionally, we ramped our R&D efforts to ensure our engineers remained at the forefront of wireless and web-based technologies,” added Coburn. Revenue for the six months ended June 30, 2000 increased 40 percent to $58.9 million, from $41.9 million in the first half of 1999. Net income increased 41 percent to $7.5 million in the first half of 2000 as compared to $5.3 million in the prior year period. Diluted earnings per share for the six month period increased 32 percent to $0.37 from $0.28 in the first half of 1999. Conference Call Cognizant Technology Solutions will host a conference call today at 10:00 a.m. (eastern) to discuss the Company’s quarterly results. The call will be broadcast live via the Internet at Cognizant’s web site, www.Cognizant.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software. About Cognizant Technology Solutions Cognizant delivers high-quality, cost-effective, full life-cycle solutions to complex software development and management problems. Cognizant employs more than 2,400 computer science and engineering professionals globally at its client sites and eight development centers in India. The company specializes in e-business and application management. Cognizant has been assessed at SEI/CMM Level 4 and is ISO 9001 certified. Based on sustained revenue and earnings growth, Forbes magazine named Cognizant the best small company in America in its Nov. 1, 1999 listing of the “200 Best Small Companies.” For more information, visit Cognizant on the Web at www.Cognizant.com. Certain statements contained herein, including statements regarding the development of the Company's services, markets and future demand for the Company's services, projections on future growth potential, and other statements regarding matters that are not historical facts, are forwardlooking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, variability of quarterly operating results, reliance on large projects, concentration of revenue, ability to attract and retain professional staff, dependence on key personnel, ability to manage growth effectively, risks associated with rapid technological advances, risks associated with possible acquisitions, risks associated with the Company's strategic partnerships, various project-associated risks, substantial competition, general economic conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission. -tables to followCOGNIZANT TECHNOLOGY SOLUTIONS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended Six The Investor Guide COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION (Nasdaq:CTSH) 500 Glenpointe Centre West Teaneck, NJ 07666 Market Data* As of March 31, 2000 Common shares: 18,518,485 Market capitalization: $667 million Public float: 39% Fiscal year-end: 12/31 *Initial public offering completed on June 19, 1998. Performance Highlights In thousands except per share Three Months Ended 3/31/00 3/31/99 Revenues $27,070 $20,046 Gross profit $13,131 $9,715 Net Income $3,461 $2,759 Basic EPS $0.19 $0.15 Diluted EPS $0.17 $0.14 Three Months Ended 3/31/00 3/31/99 Revenues $27,070 $20,046 Gross profit $13,131 $9,715 Net Income $3,461 $2,759 Basic EPS $0.19 $0.15 Diluted EPS $0.17 $0.14 Business Overview Cognizant Technology Solutions Corporation is a leading applications outsourcer that provides e-business solutions and application management services to Fortune 500 and Blue Chip companies in the US and Europe. Cognizant acts as a supplementary information technology division, handling full life-cycle application development projects, and taking full responsibility for on-going maintenance and support of its client's systems. Cognizant's core competencies include legacy and client/server systems, e-business applications, data warehousing and component based development. The healthcare, financial and information driven sectors of the economy are all areas in which Cognizant's on-site/offshore methodologies are proving highly effective. Keys to Cognizant's success are: Highly Skilled Workforce: Cognizant employs more than 2,000 computer science and engineering professionals to successfully manage and solve its customers' software project challenges. Cognizant account managers and technical professionals based at the customer site work as a "virtual" team with their colleagues at Cognizant's software development centers in India, and deliver cost-effective solutions within rigorous time frames. Cognizant is well known in India as a preferred employer and attracts the best and brightest engineering talent. Established Methodology: To ensure that work of the highest quality is delivered to its customers, Cognizant utilizes its ISO 9001 certified QView methodology to define and implement projects. This method maximizes the integration of on-site and offshore teams, cutting delivery time and resulting in cost savings. Cognizant has also been assessed at SEI/CMM Level 4, ensuring that development work for its clients' applications is managed at a high level of quality and efficiency. Well-Developed Infrastructure: Cognizant has developed an extensive communications and technology infrastructure that facilitates the seamless integration of its on-site and offshore workforces, permitting team members in different locations to access common project information, and providing tight integration with its customers' infrastructure. Range of Technologies: The Company has project experience and expertise across multiple architectures and technologies, including emerging technologies such as data warehousing, Internet/intranet applications and object-oriented development. Because most Cognizant programmers are trained in multiple technologies and architectures, the Company is able to react quickly to customers' needs. Through its internal research and development group and the continuing education of its technical personnel, Cognizant ensures that its collective skill set keeps pace with emerging technologies. Key Financial Data / Ratios (as of 12/31/99) Working Capital: $43.5 million Days Sales Outstanding (excl. unbilled): 43 Revenue Growth (9/99 qtr over 9/98 qtr): 24% Analyst Coverage Adams, Harkness & Hill BancBoston Robertson Stephens SG Cowen Investor Contacts For Further Information: Cognizant Technology Solutions Corporation (201) 678-2712 Gordon Coburn (CFO) Morgen-Walke Associates (212) 850-5600 Connie Bienfait, Michele Katz, Ian Hirsch The information contained on these pages is furnished for information purposes only, and is not to be construed as an offer to buy or sell securities Copyright © 2000 Cognizant Technology Solutions. Contact webinfo@cognizant.com for further information. Cognizant Technology Solutions provides solutions to a wide range of complex software problems faced by some of the world's largest businesses. We are a fast-growing company that invests in people-a place where talent and freedom are highly valued. "I love working in America, and I translate that feeling to my staff in India." Sriram Adhimoolam, Project Manager at IMS Health Cognizant employs over 2,000 IT professionals at eight development centers in India and multiple customer locations in the US and Europe. We foster an atmosphere of opportunity with fast-track advancement and a team environment that encourages associates to grow with the company. It's no wonder that we are the employer of choice in India. Cognizant places great emphasis on training. A full-time group devoted to continuing technical training and support is part of this emphasis. Heavy investment in ongoing training keeps Cognizant associates motivated while enriching and expanding the mix of skills and talent. At Cognizant, you'll gain critical experience, build a high-demand skill set and have the opportunity to take your career as far as you want to go. Ongoing opportunities exist for both experienced and entry-level technical professionals. Copyright © 1999 Cognizant Technology Solutions. Contact webinfo@cognizant.com for further information. Work Culture Who we are Few organizations know more about generating sparks that impact the world than Cognizant Technology Solutions, a US-based software company with offices in New Jersey, Chicago, California, Toronto, London and Frankfurt and development centers in Chennai, Calcutta and Pune, India Cognizant is an industry-leading provider of e-business solutions, application management, and software development and maintenance. Cognizant is a major player in leading-edge technologies including, webcentric solutions, data warehousing and component-ware. Among the company's many successes is that ISO9000 certification was received within two years of establishment. Further, Cognizant has the distinction of being assessed at SEI CMM Level 4 across all locations, and a growth rate of 143% in 1997-98, the highest among the top fifteen software exporters in India. Work Environment Working with us, you'll thrive in an atmosphere of opportunity and growth, where your talent is recognized and rewarded. We employ more than 2,000 IT professionals at various development centers in India and at customer locations around the world. A full-fledged Proficiency Augmentation Center is devoted to keeping you motivated while enriching and expanding your horizons. Few companies focus so consciously and heavily on training. We invest strongly in training because it fosters innovational ingenuity while keeping you up to speed on the latest IT trends. At Cognizant, you'll gain critical experience, build your skills and work with other brilliant minds around the world. You'll gain crucial business knowledge of applications and receive experience in the latest technology areas. We add value to you At Cognizant, you get an opportunity to work on a variety of technologies, environments and businesses giving you the opportunity to gain both technical and business skills. We strive to provide an environment that: Furnishes meaningful challenges. Offers opportunities to contribute to the success of the Company Nurtures creativity and risk-taking Facilitates constructive debate Promotes individual initiative Encourages and rewards high performance Fosters open and honest communication between the Associate and the company Builds trust The Rewards The returns are on a global scale. Apart from attractive salary contracts, you'll find working with us an experience that gives you a fresh outlook on work and life. Flexi-timings give your creative mind respite from fixed office hours, and recreational activities help unwind those tightly coiled folds in your brain! What Next? We're poised for tremendous growth in the years ahead. And we demand nothing less than the highest degree of involvement, participation, and commitment from you to make it happen. If you are interested in becoming a significant part of this winning team, e-mail us your resume. Be sure to highlight any Line of Business or Industry experience that you may have gained in the course of your experience, especially if it is an area you would like to continue working in at Cognizant. Under most circumstances, you will hear from us within a week. Then you'll receive an invitation to participate in a preliminary interview, either over the telephone or at one of our offices. Our Commitment to Affirmative Action/Policy of Meritocracy Copyright © 1999 Cognizant Technology Solutions. Contact webinfo@cognizant.com for further information.