Sonata declares First Quarter Results 2004-2005

Sonata declares First Quarter Results- Consolidated Net up by 95%
Mumbai, July 21, 2006.

The Board of Directors at its Meeting held here today, took on record the audited accounts of Sonata Software Limited for the quarter ended 30 th June 2006.

Speaking on the occasion, Mr. B Ramaswamy, President & Managing Director, stated, "We have witnessed growth over the last 12 consecutive quarters. This is clearly attributable to the success of our organic growth strategy. With the growth in Revenue and Net Profit, key parameters like operating margin and return on capital employed (ROCE) have also shown strong improvement. We ended the quarter with the highest cash reserves."

HIGHLIGHTS

Sonata Software Limited

Revenue at Rs. 438.5 Mn, up 46% EBITD at Rs. 116.9 Mn, up 65% PAT at Rs. 87.52 Mn, up 71% ROCE (Annualized) at 20.09%, as compared to 11.96% for the same quarter last year. Cash Generation from operations at Rs. 126.9 Mn Cash Reserves as on 30 th June 2006 at Rs. 558.6 Mn 6 New clients added during the quarter Receivables as number of day's sales have reduced from 80 to 72 days

Sonata Software Limited -Consolidated

Revenue at Rs. 1081.6 Mn, up 26% EBITD at Rs. 143.89 Mn, up 75% EBITD % of international software services exports is at 27.28%, compared to 19.63% during the same quarter last year PAT at Rs. 96.18 Mn, up 95% ROCE (Annualized) at 22.11%, as compared to 12.09% for the same period last year. Cash Reserves as on 30 th June, 2006 at Rs. 710.9 Mn The geographical spread of international software services export is USA 48% & Europe 52% Total number of employees as on 30 th June, 2006 is 1736