Bangalore, 12th April 2002.

The Board of Directors, at a meeting held here today, took on record the audited accounts of Sonata Software Limited for the Quarter and financial year ended on 31st March 2002. The accounts prepared in accordance with the New Accounting Standards prescribed by the Institute of Chartered Accounts of India also included the Consolidated Accounts of Sonata and its Subsidiaries viz., Sonata Information Technology Limited, Abisko Development Limited, Cyprus and Offshore Digital Services Inc., California.

The Board declared a final dividend of 15%, which along the interim dividend works out to 35% for the whole year.

Consolidated Revenue of the Quarter was Rs.665.19 m of which the services accounted for Rs.224.99m and products accounted for Rs.440.20 m. Consolidated Revenue for the year was Rs.2258.48 m of which the services accounted for 1020.60 m and products accounted for Rs.1237.88 m. Consolidated profit for the Quarter was 30.28 m and Rs.208.90 m for the 12 month ending March 2002.

The company had issued a profit guidance during October 2001, and the results for the second half of Financial Year is in line with the guidance.

Mr. B Ramaswamy said, "The client acquisitions during the last 12 months coupled with deepening of the relationships with existing customers provides a strong base for growth in the year ahead as compared to the previous six months."

For the financial year 2002 -2003 the company has projected the consolidated profit after tax at Rs.160m to Rs.180 m from a Revenue of Rs.2600m to Rs.2800m.

I. Sonata Software Limited-Financial Highlights:

       Revenue was Rs.169.15 million as compared to Rs.254.38 million for the quarter ended 31st March '01.

       Offshore revenues accounted for 60% of the income as compared to 45% for the quarter ended 31st March '01.

       Revenue from U.S. geographically accounted for 65% and Europe accounted for 35%.

       The Operating margin (EBIDT) was 17.26% as compared to 36.87% during the quarter ended 31st March '01.

       Net profit was 12.39% as compared to 32.56% during the quarter ended 31st March '01.

       Five new customers were added during the quarter.
 

     Revenue was Rs.837.14 million as compared to Rs.1102.45 million for the year ended 31st March '01.

     Offshore revenues accounted for 55% of the income. The breakup for the year ended 31st March '01 was 47%.

     Revenue from U.S. geographically accounted for 59% and Europe accounted for 41%.

     The Operating margin (EBIDT) was 25.61% as compared to 33.74% during the year ended 31st March '01.

     Net profit was 21.27% as compared to 29.70% during the year ended 31st March '01.

     17 new customers were added during the year..
 

II. Consolidated Financial Highlights:

(Comparison for the previous year's quarter and year is not given as the consolidated accounts are published only from 1st Quarter of the FY 2001-02)

     Revenue was Rs.667.91 million

     Revenue from U.S. geographically accounted for 23%, Europe accounted for 8% and Rest of the World accounted for 69%.

     The Operating margin (EBIDT) was 6.18%

     Net profit was 4.53%
 

     Revenue was Rs.2286.68 million

     Revenue from U.S. geographically accounted for 26%, Europe accounted for 17% and Rest of the World accounted for 57%.

     The Operating margin (EBIDT) was 11.49%

     Net profit was 9.14%