Infosys Technologies Announces Results for the Quarter Ended December 31, 2006

Infosys Technologies Limited (NASDAQ: INFY):

Highlights

Consolidated results for the quarter ended December 31, 2006

-- Third quarter revenues at $ 821 million, up 46.9% from the
corresponding quarter last fiscal

-- Earnings per American Depositary Share (ADS)(a) increased
to $ 0.39 from $ 0.26 in the corresponding quarter last
fiscal

-- 43 new clients were added during the quarter by Infosys
and subsidiaries

-- Gross addition of 6,062 employees (net 3,282) for the
quarter by Infosys and subsidiaries

-- 69,432 employees as on December 31, 2006 for Infosys and
subsidiaries

Outlook for the quarter and the fiscal year ending March 31, 2007

-- Consolidated revenues expected to be between $ 859 million
and $ 861 million for the quarter ending March 31, 2007
(YoY growth of 44.9% - 45.2%) and expected to be $ 3.09
billion for the fiscal year ending March 31, 2007 (YoY
growth of 43.6%)

-- Consolidated earnings per ADS(a) expected to be $ 0.40 for
the quarter ending March 31, 2007; (YoY growth of 42.9%)
and $ 1.47 for the fiscal year ending March 31, 2007; (YoY
growth of 44.1%)

Infosys Technologies Limited (NASDAQ: INFY) ("Infosys" or "the
company") today announced financial results for its third quarter
ended December 31, 2006. Revenues for the quarter aggregated $ 821
million, up 46.9% from $ 559 million for the quarter ended December
31, 2005.

"Our investments in enriching and synergizing our portfolio of
services have created compelling value propositions for our clients,"
said Nandan M. Nilekani, CEO and Managing Director. "As our clients
focus on enhancing their competitiveness, they are leveraging our
capability to drive their transformation programs."

Infosys is the preferred development partner for a worldwide
leader in networking for its Customer Ordering Experience (COE)
program, which is aimed at radically simplifying, improving and
scaling the customer purchasing experience.

A leading US grocery chain selected Infosys to enhance its IT
systems to support warehouse operations and improve business-IT
alignment. A large distributor of paper products in the US is working
with Infosys to re-engineer and re-architect its legacy Enterprise
Resource Planning (ERP) system. Infosys will consolidate its
multi-location systems while enabling substantial cost savings, ease
of maintenance and deployment of new applications.

Infosys' Independent Validation Services (IVS) continued to gain
traction with clients across industries. Infosys is working with a
leading North American insurance company to provide consultancy and
performance testing services of a key SOA-based application. Infosys
is establishing Testing Centers of Excellence (CoE) for a leading
manufacturer and marketer of skincare, fragrance and hair-care
products and a leading North American bank. Infosys is also providing
performance validation services for a leading utility in North America
for a crucial outage communication systems application.

Infosys Consulting Inc. continued to work with clients as a
trusted partner to support their IT strategy for transformation. One
of the world's largest travel agencies with lines of business that
include credit cards and magazines is partnering with Infosys
Consulting to streamline its governance practices by defining and
implementing a flexible model to improve integration and transparency
between IT and internal business partners.

"The rupee appreciated against all major currencies during the
quarter, impacting our operating margins by 200 basis points," said V.
Balakrishnan, Chief Financial Officer. "Despite this, we have
maintained our margins."

(a) Adjusted for stock split

About the company

Infosys (NASDAQ: INFY) defines, designs and delivers IT-enabled
business solutions. These provide our clients with strategic
differentiation and operational superiority, thereby increasing their
competitiveness. Each solution we provide is delivered with the
industry-benchmark "Infosys Predictability" that gives our clients
peace of mind. With Infosys, they are assured of a transparent
business partner, business-IT alignment with flexibility, world-class
processes, speed of execution and the power to stretch their IT budget
by leveraging the Global Delivery Model that Infosys pioneered.
Infosys has over 69,000 employees in over 39 offices worldwide.
Infosys is part of the NASDAQ-100 Index. For more information, visit
www.infosys.com.

Safe Harbor

Certain statements in this release concerning our future growth
prospects are forward-looking statements, within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, and
Section 21E of the U.S. Securities Exchange Act of 1934, as amended,
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 the
success of our investments, risks and uncertainties regarding
fluctuations in earnings, our ability to manage growth, intense
competition in IT, business process outsourcing and consulting
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 on fixed-price,
fixed-time frame contracts, client concentration, restrictions on
immigration, industry segment concentration, our ability to manage our
international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks or system
failures, our ability to successfully complete and integrate potential
acquisitions, liability for damages on our service contracts, the
success of the companies in which Infosys has made strategic
investments, withdrawal of governmental fiscal incentives, political
instability and regional conflicts, legal restrictions on raising
capital or acquiring companies outside India, and unauthorized use of
our intellectual property and general economic conditions affecting
our industry.

Additional risks that could affect our future operating results
are more fully described in our United States Securities and Exchange
Commission filings including our Annual Report on Form 20-F for the
fiscal year ended March 31, 2006, Quarterly Reports on Form 6-K for
the quarters ended June 30, 2006 and September 30, 2006 and our other
recent filings. These filings are available at www.sec.gov. Infosys
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
company's filings with the Securities and Exchange Commission and our
reports to shareholders. The company does not undertake to update any
forward-looking statements that may be made from time to time by or on
behalf of the company.

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Infosys Technologies Limited and subsidiaries

Consolidated Balance Sheets

(Dollars in millions except per share data)
As of
March 31, 2006 December 31, 2006
-------------- -----------------
(a) (Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $889 $589
Investments in liquid mutual fund
units 170 498
Trade accounts receivable, net of
allowances 361 502
Unbilled revenue 48 72
Prepaid expenses and other current
assets 40 64
Deferred tax assets 1 2
-------------- -----------------
Total current assets 1,509 1,727
Property, plant and equipment, net 491 609
Goodwill 8 106
Intangible assets, net - 20
Deferred tax assets 13 15
Advance income taxes 18 9
Other assets 27 31
-------------- -----------------
Total Assets $2,066 $2,517
-------------- -----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $3 $4
Income taxes payable - 2
Client deposits 2 3
Unearned revenue 44 76
Other accrued liabilities 160 210
-------------- -----------------
Total current liabilities 209 295
Non-current liabilities
Other non-current liabilities 5 1
Minority interests 15 -
Stockholders' Equity
Common stock, $0.16 par value
600,000,000 equity shares authorized,
Issued and outstanding -551,109,960
and 557,848,468 as of March 31, 2006
and December 31, 2006, respectively 31 62
Additional paid-in capital 410 512
Accumulated other comprehensive income 9 35
Retained earnings 1,387 1,612
-------------- -----------------
Total stockholders' equity 1,837 2,221
-------------- -----------------
Total Liabilities And Stockholders'
Equity $2,066 $2,517
-------------- -----------------

(a) March 31, 2006 balances were obtained from audited financial
statements
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Infosys Technologies Limited and subsidiaries

Unaudited Consolidated Statements of Income

(Dollars in millions except per share data)
Three months ended Nine months ended
December 31, December 31,
------------------------- -------------------------
2005 2006 2005 2006
------------ ------------ ------------ ------------
Revenues $559 $821 $1,559 $2,227
Cost of revenues 319 468 890 1,280
------------ ------------ ------------ ------------
Gross profit 240 353 669 947
------------ ------------ ------------ ------------
Operating Expenses:
Selling and
marketing expenses 35 54 102 147
General and
administrative
expenses 41 64 124 183
Amortization of
intangible assets - 1 - 2
------------ ------------ ------------ ------------
Total operating
expenses 76 119 226 332
------------ ------------ ------------ ------------
Operating income 164 234 443 615
Gain on sale of
long term
investment - - - 1
Other income, net (1) 13 15 55
------------ ------------ ------------ ------------
Income before
income taxes and
minority interest 163 247 458 671
Provision for
income taxes 18 29 52 78
------------ ------------ ------------ ------------
Income before
minority interest 145 218 406 593
Minority interest 2 - 3 2
------------ ------------ ------------ ------------
Net income 143 218 403 591
------------ ------------ ------------ ------------
Earnings per equity
share(a)
Basic $0.26 $0.39 $0.74 $1.07
Diluted $0.26 $0.38 $0.72 $1.04
Weighted average
equity shares used
in computing
earnings per
equity share(a)
Basic 544,715,752 554,200,798 541,751,558 552,043,540
Diluted 559,825,844 566,883,484 556,868,762 564,849,610

(a) Adjusted for stock split
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