Cambridge Solutions continues on track to deliver profitable growth

Reports Revenues of Rs 3,586 Million for the quarter ending December 2006, 24.3 % growth in revenue versus corresponding quarter of the previous year

Profit after Tax of Rs 180.5 Million, increase of 5.1 % versus the previous quarter

Achieves Revenues of Rs.10,836.9 million with Profit After Tax of Rs. 502.7 million in the nine month period ended December 31, 2006

London, UK– January 30, 2007: Cambridge Solutions Limited (“Cambridge”), one of the leading knowledge-based IT and BPO firms in the world, today reported Rs 3,586 Million inconsolidated revenues for the quarter ended December 31, 2006, depicting a growth of 24.3% YoY. The Earnings before Depreciation and Amortization, Interest and Taxes were Rs 334.8 Million for the quarter while Profit After taxes were Rs 180.5 Million.

For the nine month period, the company posted Rs 10,836.9 Million revenues, up 23.5% from revenues of corresponding period in previous year, with Earnings before Depreciation and Amortization, Interest and Taxes at Rs 1,229.1 Million and Profit after Tax at Rs 502.7 Million.

Americas , being the major territory, contributed 81% of the consolidated revenues followed Australia at 10% and the balance coming from Europe and Asia .

IT services contributed 33% of the consolidated revenues at Rs 1,181.2 Million, growing 40% YoY. Recently, the company signed an agreement to sell part of its Government business to Dallas-based Affiliated Computer Services, Inc. (NYSE: ACS), a premier provider of business process outsourcing and information technology solutions in an all cash deal worth up to US $30 million, subject to completion of certain conditions.

In the BPO segment, the company witnessed 16% YoY growth at Rs 2,404.7 Million. The entire BPO operations across the globe have now been consolidated under the leadership of Wesley O' Brien, President BPO services. On taking over the additional responsibilities, he commented, “our brand and reputation in providing high quality claims, risk management and business process services continues to grow with the teams headed in the right direction, proactively”. As per the plan laid out in the previous quarter, the Company has implemented cost optimization measures in the BPO segment to improve the operating margins in the next financial year.

At the global level, there has been net addition of 116 people taking the total headcount as on December 31, 2006 to 4,383. The company added 28 new clients in the quarter. As of December end, there are 53 million dollar clients across the two business segments, up from 50 in the last quarter.

About Cambridge Solutions Ltd.

Cambridge Solutions Ltd. (HQ: Bangalore , India ; USHQ: Greenwich , CT ) is a strategic global outsourcing firm with deep expertise in:

•  IT business consulting, application implementation, software engineering, maintenance and support services

•  Business process outsourcing (BPO) for insurance, banking and financial services companies; process consulting; transaction processing, finance and accounting back office support; claims and risk management services; inbound and outbound contact centers to support all of these activities; and other processes that require knowledge-based decision making.

The Company employs over 4,383 professionals serving customers on 4 continents through over 80 locations worldwide. With offices in the USA , Europe , India , Singapore , and Australia , Cambridge serves Fortune 500 firms, insurance and financial services companies, and public entities around the world.

The company's BPO subsidiary was named one of the top three performing BPO companies by Global Services media and neoIT in 2006, and was recently ranked as the 28th leading outsourcing company in the world in the International Association of Outsourcing Professionals (IAOP)'s “2006 Global Outsourcing 100” list, that appeared in a special advertising section in Fortune Magazine. The Company is listed on the major stock exchanges of India (BSE, NSE, MSE & ASE) under the ticker “ CAMBRIDGE ”. For more information, visit: www.cambridgeworldwide.com.

Safe Harbor

Certain statements in this release are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services, including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns in fixed price, fixed time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, etc. The company does not undertake to update any forward looking statement that may be made from time to time by or on behalf of the company.

Media Contacts:

Melissa Arulappan
Corporate Voice|Weber Shandwick
Phone: (91) 98450-22389
melissa@corvoshandwick.co.in

Pradeep Chaudhry, CFO
Cambridge Solutions Ltd.
Phone: (91) 98860-10174
pradeep.chaudhry@cambridge-asia.com

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