Infosys reported financial and operational results for the third quarter of fiscal year 2004. Revenues grew 37.9% year-over-year in US dollars while net income increased 35%. Key metrics like client acquisition, employee headcount, and new facilities expansion showed continued healthy growth. The outlook forecasted further increases in income, earnings per share, and client spending for the remainder of the fiscal year.

1. Performance of Infosys for the Third Quarter ended December 31, 2003 Nandan M. Nilekani S. Gopalakrishnan Chief Executive Officer, President and Managing Director Chief Operating Officer and Deputy Managing Director

4. Financial Performance

6. Highlights (Indian GAAP*-Quarterly) (Rs. crore) FY2004 FY2004 FY 2003 % growth over Q3 Q2 Q3 Q2 04 Q3 03 Income 1,235.26 1,134.75 958.64 8.9 28.9 S/w development expenses 645.48 587.16 481.62 9.9 34.0 Gross profit 589.78 547.59 477.02 7.7 23.6 S,G&A expenses 179.60 169.16 143.53 6.2 25.1 Operating profit 410.18 378.43 333.49 8.4 23.0 Depreciation 62.23 62.33 49.48 (0.2) 25.8 Operating profit after depreciation 347.95 316.10 284.01 10.1 22.5 Other income 47.48 44.28 29.80 7.2 59.3 Provision for investment 2.29 0.22 - - - PBT 393.14 360.16 313.81 9.2 25.3 Provision for tax 65.00 60.00 57.50 8.3 13.0 PAT from ordinary activities 328.14 300.16 256.31 9.3 28.0 * Non-consolidated

8. Region wise Revenue % FY2004 FY2004 FY2003 FY2004 FY 2003 Q3 Q2 Q3 YTD YTD North America 72.2 73.9 74.2 73.5 73.5 Europe 20.7 18.0 16.4 18.8 17.3 India 0.6 1.6 1.2 1.4 1.8 Rest of the world 6.5 6.5 8.2 6.3 7.4 Total 100.0 100.0 100.0 100.0 100.0

9. Operational Performance

10. Utilization

11. Revenues by Project type % FY2004 FY2004 FY2003 FY2004 FY2003 Q3 Q2 Q3 YTD YTD Fixed Price 34.7 35.4 37.6 35.3 36.5 Time & Material 65.3 64.6 62.4 64.7 63.5 Total 100.0 100.0 100.0 100.0 100.0

12. Onsite-Offshore Revenue % FY2004 FY2004 FY2003 FY2004 FY2003 Q3 Q2 Q3 YTD YTD Onsite 53.4 54.1 58.0 54.5 54.4 Offshore 46.6 45.9 42.0 45.5 45.6 Total 100.0 100.0 100.0 100.0 100.0

14. Client Acquisition & Expansion of Services

19. Human Resources

21. Capex and Infrastructure

23. Progeon

24. Highlights (Indian GAAP-Quarterly) (Rs. crore) FY2004 FY2004 FY2003 % growth over Q3 Q2 Q3 Q2 04 Revenue from BPM services 21.79 17.08 8.21 27.6 Cost of revenues 13.05 9.57 6.91 36.4 Gross profit / (Loss) 8.74 7.51 1.30 16.4 S,G&A expenses 7.82 6.22 2.98 25.7 Operating profit / (Loss) 0.92 1.29 (1.68) (28.7) Depreciation 1.52 1.09 0.57 39.4 Operating profit / (loss) after depreciation (0.60) 0.20 (2.25) - Other income 0.97 0.62 0.85 56.4 Profit / (Loss) before tax 0.37 0.82 (1.40) (54.9) Provision for tax - - - - Profit / (Loss) after tax from ordinary activities 0.37 0.82 (1.40) (54.9)

26. Outlook for the Future

29. Summary

31. Thank You