Sonata Q2 Net Grows Sequentially 21.64%; Revenue Up 8.14% Declares Interim Dividend of 20%; Reaffirms Guidance for the Year

Mumbai, October 16, 2002.

Highlights of SSL Performance
Corresponding Quarter Comparisons
	Quarter ended 30 Sep 2002	Quarter ended 30 June 2002	Growth Q3 2001-02
Revenue	213.28	197.23	8.14%
Profit	38.84	31.93	21.64%
	Half year ended 30 Sep 2002	Half year ended 31st March 2002	Growth
Revenue	410.51	340.63	20.51%
Profit	70.77	36.58	93.47%

The Board of Directors, at a meeting held here today, declared an interim dividend of 20% while taking on record the audited condensed accounts of Sonata Software Limited for the second Quarter and the Half Year ended 30th September '02.

Revenue for the current quarter ended 30th September '02 was Rs.213.28 m compared to Rs.197.23 m for the quarter ended 30th June '02 a growth of 8.14% over Q1 of the current year.

Profit after Tax for the current quarter ended 30th September '02 was Rs.38.84 m compared to Rs.31.93 m for the quarter ended 30th June '02 a growth of 21.64% over Q1 of the current year.

Cash generated from Operations for the quarter ended 30th September '02 was Rs. 77.56 m while Cash, Cash Equivalents and Investments in Liquid Funds as on 30th September '02 was Rs.226.02 m as compared to Rs.180.67 m as on 31st March '02

During the quarter Sonata added 5 new clients. The US contributed 55% of the total exports, while Europe's share is at about 43% and Rest of the World at 2%. Offshore grew to 67 % of the revenues while on-site declined to 33 %.

Speaking on the occasion, Mr. B. Ramaswamy, President and Managing Director said "Sonata's strategy of building strong offshore delivery capability with its multi pronged emphasis on Technology, People, Processes and Track Record, has resulted not only in increased business from existing customers but also in new customer acquisition."

Outlook

Consolidated Performance versus Guidance
	F.Y. 2002/2003	Half year 2002/2003
Revenue	2600-2800	1233
Profit	160-180	69.7

At the beginning of this Financial Year, the company had provided its guidance for the year 2002-2003, indicating a consolidated profit after tax of Rs 160-180 million on a revenue projection of Rs 2600-2800 millions. At the halfway stage, the company has achieved 44%-47% of its revenue projections and 39-44% of its Profit estimates. In view of this, the company reiterates that its full year performance will be in line with the guidance already given.