Sasken Full Year Revenues at Rs 308.13 crore
Increases by 27% YoY; Annual EBITDA increase of 36%

Bangalore, April 14, 2006: Sasken Communication Technologies Limited (Sasken), a pioneer in telecom R&D outsourcing, today announced results for the fourth quarter and full year ended March 31, 2006.

The consolidated revenues for the year ended March 31, 2006 stood at Rs 308.13 crore, in comparison to Rs 241.77 crore for the full year last year, registering a growth of 27%.

Profit After Tax for the full year ended March 31, 2006 stood at Rs 22.92 crore after an exceptional item, in comparison to Rs 22.78 crore for the full year last year, registering a growth of 1%. The PAT for FY 06 before the exceptional item was Rs. 29.68 Crore, translating to a growth of 30% over the previous year.

Consolidated revenues for the fourth quarter ended March 31, 2006 stood at Rs 78.05 crore and Profit After Tax stood at Rs 6.29 crore. This was in comparison to revenues of Rs 75.94 crore and Profit After Tax of Rs 0.18 crore after an exceptional item in Q3 FY06. For the same period last year (Q4 FY05), the revenues stood at Rs 74.55 crore and Profit After Tax at Rs 10.95 crore.

The directors have recommended a dividend of Rs 3 per share on the equity capital of the company for the financial year ended March 31, 2006, subject to the approval of the shareholders.

Key Financial Highlights for Q4 and Full Year FY06

• Selling, General and Administrative Expenses were Rs. 13.95 crore (18% of business revenues in comparison to 20% during the previous quarter)
• Cash and cash equivalents stand at Rs. 15.15 crore as on March 31, 2006, compared to Rs. 10.87 crore as on March 31, 2005
• Average collection period stands at 80 days in Q4 FY06 in comparison to 71 days during the previous quarter
• Revenue contribution from the top five customers stood at 76% for Q4 FY06 and 72% for the full year FY06
• The consolidated forex-hedged position, as on March 31, 2006 was USD 47.40 Million
• Basic Earnings Per Share (EPS) for the year ended March 31, 2006 was Rs 9.08 and diluted EPS was Rs 8.87

Key Business Highlights for Q4 and Full Year FY06

• Incorporated a development centre in China
• A gross total of 203 people were added this quarter (net adds of 71), taking the total employee strength to 2,575 as on March 31, 2006
• One Tier 1 customer in services scaled to an annualized revenue run rate of US$ 3M+
• Utilization on the services side stands at 78% in Q4 FY06 and 76% for the full year FY06
• Royalty revenues realized as leading Japanese handset vendor begins shipping 3G handsets embedded with Sasken’s multimedia solutions
• Successfully demonstrated a full phone solution using Sasken’s Integrated Solution at the 3GSM World Congress in Barcelona

Note: We announced the acquisition of Integrated SoftTech Solutions in Chennai on April 5, 2006. This does not have any impact on the business performance for Q4 and Full Year FY 06.

Awards and Accolades for Q4 FY06

• Ranked # 8 in the Businessworld-Grow Talent Great Places to Work for in India Survey 2005

Commenting on the performance, Rajiv Mody, Chairman & CEO, Sasken said, “Our services business has recorded an annual growth of 35%. This has been backed by a healthy increase in annual utilization rate from 64% to 76%, resulting in EBITDA from services moving up by 57% annually. A development centre has now been incorporated in China, and our Mexico centre is up and running. Apart from this, the acquisition of Integrated SoftTech in Chennai that we announced recently has added a Chennai centre for us.”

“We continue to follow our strategy of entering key accounts and scaling them; this has been validated by one Tier 1 account now scaling to US$ 3M+ in annualized revenues,” he added.

“On the products side, we continue to be in investment mode. The shift from a licensing model to a royalty model is slowly starting to pay off, and we did realize royalty revenues from a leading Japanese handset manufacturer this quarter. Also, we successfully showcased a full functional phone using Sasken’s Integrated Solution at the 3GSM World Congress in Barcelona,” added Rajiv.

The detailed financial results are given in Annexure A to this Media Release.

A fact sheet providing the operating metrics for the company can be downloaded from www.sasken.com.

Conference Call details

A conference call is planned at 1200 hrs IST on Monday, April 17, 2006, where the senior management of Sasken will comment on the company’s performance for the fourth quarter and full year ended March 31, 2006, and respond to queries from participants. To participate in the conference call, please dial the numbers given below ten minutes ahead of the schedule.

The transcript of this conference will be available within 72 working hours in the investor section of the company website, www.sasken.com

Details of the conference call are as follows:

About Sasken
Sasken is an embedded telecom solutions company that helps businesses across the telecom value chain accelerate product development life cycles. Sasken helps clients speed up product development through a unique combination of ready-to-use technology blocks and services, using its unparalleled telecom experience. Global Fortune 500 companies including Nortel, Nokia and Motorola are part of Sasken's customer profile. Established in 1989, Sasken employs over 2500 people at its offices in India, China, Mexico, Germany, Japan, Sweden, UK and the U.S.

For further information, please contact:

Venkatesh S
Sasken Communication Technologies Ltd.
Tel: +91 80 56944817
E-Mail: pr@sasken.com

Mehul Mehta
Adfactors PR Pvt Ltd.
Tel: +91 22 22813565
Mobile: +91 9820280325
Email: mehul@adfactorspr.com

Disclaimer: Certain statements made in this release concerning our future growth prospects may be interpreted as forward looking statements, which involve a number of risks and uncertainties that could cause the actual results to differ materially from those in such forward looking statements. Investors are requested to use their discretion in relying on them. We do not undertake to update any forward-looking statements that may be made from time to time.