Sonata sets up offshore development center for TUI UK

Bangalore (India) & London (UK) Dec. 16, 2004

Sonata Software Ltd. (Sonata) today announced that it has signed a multi-year outsourcing services contract with TUI UK. Under this agreement, Sonata will develop e-business solutions, provide application management services and develop and implement Oracle applications for TUI UK.

TUI UK is a part of TUI AG, Europe's largest travel group, which owns brands including Thomson Holidays, Britannia Airways and Hapag-Lloyd Express. It is a Euro 13-billion travel organization and is the tourism market leader in Europe.

Keith Newman, IT Director, TUI UK said: "We are happy to find in Sonata an excellent partner for our diverse IT initiatives & business transformation needs. We evaluated the top four service providers and selected Sonata because of their deep technical knowledge and a commitment to customer success, which have been evident in various projects they've undertaken for us in the last one-year of engagement. Their capabilities and the mutual successes that we've had position them as the right choice for TUI UK's long term strategic IT implementation."

B. Ramaswamy, President & MD of Sonata Software, added: "We are delighted at the recognition from TUI UK. In this long-term relationship, Sonata is closely involved in the IT-driven business transformation at TUI UK. We are excited by the opportunities and look forward to consolidating our presence in the fast growing European market."

About TUI AG

TUI AG is Europe's largest tourism business and is organized into three European divisions: TUI Northern Europe (Ireland, UK and Nordic), TUI Central Europe (Germany, Austria, Switzerland and Poland) and TUI Western Europe (France, Belgium, Netherlands). It has 22 million customers, 3,700 travel agents, 81 brands, 88 aircraft across six airlines (including Hapag Lloyd Express - German no-frills carrier), 285 hotels and 32 incoming agencies spread all over Europe.

About TUI UK

TUI UK is the largest holiday-company in UK and includes the leading UK brand Thomson Holidays. It employs around 10,000 people, 7,000 of whom work overseas in around 40 holiday destinations around the world. It is the market leader in the UK inclusive holiday market, a position it has held since 1974.

About Sonata

Sonata Software Ltd. (Sonata) is a leading IT consulting and Software Services company, which has been servicing its clients in the US, UK and Europe for the past 18 years. Sonata is listed on the Indian Stock Exchanges, and has a SEI CMM level 5 accreditation. Nurturing long-term partnerships has been a way of life at Sonata.

For further information, please visit www.sonata-software.com