TO EXPAND ITS BUSINESS TO PHILIPPINES AND MAURITIUS

The Board of Directors of Hinduja TMT Ltd ('HTMT'), in their meeting held today, considered and declared an interim dividend of Rs. 5 per share (50% on the par value of Rs. 10 per share) for the year ended 31st March 2003, amounting to Rs. 20.45 Crores. The Consolidated Audited Financial Results of the Company and its subsidiaries will be published on or before June 30, 2003, when the final dividend will be announced.

The total employee strength in its IT division, which is HTMT's core activity, grew by 55%, from 953 at the beginning of the year to 1472 by March 2003 owing to expansion in its BPO / Call Centre business and is in the process of recruiting 200 additional CSRs / Processors during the current quarter to take care of the increase in business from its existing clients and orders from new customers which are getting concluded.

HTMT is also engaged in strengthening of IT infrastructure of its flagship subsidiary IndusInd Media & Communications Ltd ('InCableNet'), which has recently entered into an agreement with Kudelski S. A. Switzerland and its subsidiary Nagra Vision for equity investment and CAS implementation. InCableNet will be issuing upto 3% of its equity to Kudelski S. A., at a company valuation of approx. Rs. 2300 Crores (US$ 500 Mn). HTMT currently has an effective stake of 62.07% in InCableNet, which the Company acquired through share swap on merger of certain privately held Hinduja Group companies with itself in 2001-02.

InCableNet has already placed orders for supply of Conditional Access System equipments like Digital Head-end, Subscriber Management System, Billing System and Set Top Boxes with various vendors and is well geared to meet the deadline of CAS introduction viz. 14th July 2003.

Expansion Plans in Philippines and Mauritius

In order to broad base its service delivery capabilities and enhance its domain expertise, HTMT is in an advanced stage of negotiations for acquiring a 900 agent Call Centre Company at Philippines, which is likely to be ramped upto 2000 agents. The Call Centre Company is already serving a few Fortune 500 clients. The legal due diligence exercise by Crawford Bayley & Company, Solicitors and financial due diligence by Price Waterhouse, is nearing completion. The due diligence report would be placed before the HTMT's Board later in the current month.

HTMT is already operating a Disaster Recovery Centre (DRC) at Philippines for its US based telecom client, which is running successfully and is now considering expansion of its business to Mauritius as desired by its US Insurance customer for geographical diversity.

According to Mr. S. Solomon Raj, Vice Chairman " The above business de-risking initiatives of the Company will raise the confidence level of customers of HTMT and lead to increase in the flow of business from them."

The company's associate, Fascel Ltd, the largest cellular services provider in the Gujarat circle with 457,195 subscribers, has posted profits in 2002. The recent sale of Kotak Mahindra's 11% stake in Fascel at Rs. 92 crores provides a benchmark valuation to HTMT's 19.71% effective stake in Fascel, which continues to post good performance. HTMT had acquired its stake in Fascel through share swap on merger of a privately held Hinduja Group company with itself in 2001-02.

Mr. Rajendra P. Chitale, an eminent Chartered Accountant and a Managing Partner of m/s. M.P. Chitale & Co has joined HTMT's Board as an additional Director. Mr. R. P. Chitale, a Director on the Board of important Indian Corporates, is expected to add great value to the functioning of HTMT's Board through his professional expertise.