MindTree Announces record 90% growth; Achieves revenues of $55 million

BANGALORE, April 1, 2005 - MindTree Consulting, an international IT and R&D Services Company, today announced that it has closed its 2004-05 fiscal year with impressive overall growth.  The company achieved gross revenue of $55 million, representing growth of 90% over the previous fiscal year.  This marks the first time that an Indian software services company has reached revenue of $55 million within five years. India’s software majors, historically, took two to three times as long to reach this level. 

MindTree nearly doubled its revenue over the past year through aggressive expansion of its customer base in multiple geographies.  “In a year of enhanced growth in the global economy, we made significant customer acquisitions across the world.  The U.S. geography continued to be the biggest market.  Europe made strong gains, where our revenue grew by 120%.  We also significantly expanded our customer portfolios in the Middle East, Japan and ASEAN, leading to solid growth in all our major markets,” said MindTree Consulting President and Chief Executive Officer, IT Services, Krishnakumar Natarajan.
 
MindTree established new relationships with several large customers this past year, including General Electric and Emirates.  The company further strengthened relationships with existing customers such as AIG, Volvo and Unilever.  Engagements with these customers began several years back and have grown deeper over time.  MindTree’s relationship with Avis, for example, has grown from re-building avis.com beginning in 2000 to on-going work today in 8 divisions of Cendant Corporation, Avis’ parent company.
 
“We find that large organizations are increasingly finding it more comfortable to work with mid-size IT companies.  This trend is prevalent across the globe.  They seek MindTree for the agility, access and attention they receive from us.  As a result, MindTree has clearly emerged as the face of India’s mid-size segment,” said MindTree Consulting Chief Operating Officer Subroto Bagchi.
 
MindTree continues to be recognized for its people practices.  MindTree was the only IT Company to find a place in three prestigious surveys (Best Employers in India by Hewitt Associates; Great Places to Work by Grow Talent Company; and Best Employers by Dataquest), which cover the best places to work in India.  These recognitions are a reflection of MindTree’s excellent people practices, which are based on strong values and culture.
 
The company also strengthened its global leadership development program, in preparation for future growth.  MindTree set up a development center in Hyderabad, its first outside Bangalore, India and launched its second development center in Bangalore.
 
“MindTree’s R&D Services business has grown significantly over this past year.  Our R&D Services team is more than 550 people strong, one of the largest in India.  We added and strengthened relationships with marquee customers such as Alcatel, Nera, StorageTek, Symantec and Toshiba.  We also consolidated our leadership position for Bluetooth solutions that are licensed to more than 30 leading product companies across the globe,” said MindTree Consulting President and Chief Executive Officer, R&D Services, Janakiraman S.
 
“I am pleased with MindTree’s growth during 2004-05. We have grown at more than double the industry growth rate.   Both our businesses – IT Services and R&D Services – have performed impressively.  We nearly doubled our people strength, crossing the 2,000-person mark during the year.  We expect continued high growth in the coming years.  In preparation, MindTree will add capacity and maintain its differentiation through quality of work and human capital development,” said MindTree Consulting Chairman and Managing Director Ashok Soota.
 
For further information: To answer your queries, Ashok Soota will be personally available between 3 P.M. and 4 P.M. on April 1 at 080-26713777.
 
About MindTree
 
MindTree Consulting is an international IT company that delivers affordable business and technology solutions through global software development. Co-headquartered in Somerset, NJ and Bangalore, India, the company approaches technology initiatives in a business context, with the industry knowledge of a seasoned management team and employees exceptionally skilled in technology, business analysis and project management.  MindTree Consulting develops applications to help companies enhance their enterprise operations.  The company also delivers R&D services and designs re-usable building blocks for hi-tech companies.  MindTree is the world's youngest company to be assessed at Level 5 in both CMMi and P-CMM.  MindTree has been ranked among the top five Great Places to Work in 2004 in a study conducted by Grow Talent Company and Businessworld.  MindTree has also been rated as one of the Best Employers in India for the second consecutive year in 2004 by Hewitt Associates.  Please visit www.mindtree.com for more information.