EDS completes acquisition of majority stake in Mphasis BFL

Mumbai, June 8 (UNI) EDS a global technology services company based in Texas today announced it has succeeded in its efforts to acquire a majority stake of MphasiS BFL, a leading application and business process outsourcing (BPO) services company based in Bangalore.

More than the required 83 million shares of the MphasiS BFL have been tendered in response to EDS conditional open offer of Rs 204.50 per share, which closed on June 05, 2006.

Accordingly, total consideration for the transaction that gives EDS a majority stake in the company works out approximately to USD 380 million cash, a MphasiS release issued here today said.

The transaction is expected to be completed by the end of June, subject to administrative settlement procedures, the release added.

Mr Jerry Rao, chairman and CEO of MphasiS BFL said, ''We look forward to EDS majority ownership of MphasiS and the expanded opportunities EDS brings to MphasiS employees and clients through its global footprint. For Mphasis, this means being able to offer our clients infrastructure outsourcing services in addition to our current application services and BPO offerings.'' The purchase gives EDS access to 11,000 India-based employees skilled in advanced applications development, emerging technologies, BPO/CRM services, and an applications development and business process services-focused sales channel.

Based on the company's recent annual results for the fiscal year ended March 31, 2006, it reported annual revenue of 9,401.0 million Rupees and net profit of 149.86 crore.

It will continue to operate with its current management team and company name following completion of the transaction, while Mr Jerry Rao will continue in his current capacity as CEO of the company and, Mr Jeroen Tas will continue in his current capacity as Vice Chairman of the company.

EDS will appoint a majority of the Company's board of directors and is evaluating the consolidation of its existing India operations with the company's Operations. This transaction supports EDS Global Best Shore sm delivery strategy, which provides a full range of high-quality, cost-competitive services from designated onshore, near-shore and offshore locations.

EDS has approximately 16,000 employees in 27 Best Shore countries, with more than 3,000 in India. With the addition of MphasiS BFL and current expansion plans, EDS total India work force is projected to exceed 20,000 employees by year end.

UNI SN MJ AG1905