Cranes Software’s 3Q consolidated revenues increase 126%

Net Profit grows by 190% to Rs. 84.3 million
Quarterly EPS at Rs. 10.01

Bangalore, January 30, 2004: Cranes Software International Ltd. (CSIL), a global scientific and engineering software solutions provider, today announced its unaudited results for the quarter ended December 31, 2003.

Commenting on the performance for Q3 FY 2004, Mr. Asif Khader, Managing Director, Cranes Software International Limited, said:

"In the third quarter, we have maintained our strong growth trajectory and the results are in line with our internal objectives. And importantly, much has been achieved over the last few months - milestones that further deepen our relationships with the community of global scientists. We have initiated the acquisition process for the Sigma product line, significantly enhancing our focused portfolio of global products. We have also invested in ESQUBE, a communication technology innovator, extended our relationship with Texas Instruments to the ASEAN region and expanded our international network with new subsidiaries in Singapore and Germany.

We are delighted that our initiatives have led to recognition as the fastest growing technology company in India by Deloitte Touche Tohmatsu, based on our achievements over the last two years. We are confident that given the progress achieved in the current year, we will continue to show ongoing outperformance in the future."

Group performance review:

Corresponding quarter performance: Q3 FY 2004 (October - December 2003) v/s Q3 FY 2003 (October - December 2002)

• Operating revenues increased 126% to Rs. 289.9 million compared to Rs. 128.1 million.
• Operating profit higher by 210% at Rs. 155.2 million from Rs. 50.1 million.
• Net profit after tax increased by 190% to Rs. 84.3 million from Rs. 29.1 million.

• Operating revenues increased 76% to Rs. 619.8 million compared to Rs. 352.9 million.
• Operating profit higher by 114% at Rs. 331 million from Rs. 154.6 million.
• Net profit after tax increased by 100% to Rs. 173.5 million from Rs. 86.6 million.

• Operating revenues grew by 140% to Rs. 265.0 million compared to Rs. 110.3 million.
• Operating profit was higher by 158% at Rs. 139 million from Rs. 53.9 million.
• Net profit after tax increased 119% to Rs. 71.4 million from Rs. 32.6 million.

• Operating revenues grew by 118% to Rs. 552.2 million compared to Rs. 252.9 million.
• Operating profit was higher by 137% at Rs. 306.4 million from Rs. 129.5 million.
• Net profit after tax increased 132% to Rs. 165.3 million from Rs. 71.2 million.

• CSIL acquired Sigma product line from SPSS Inc. for a total sum of US $13 million in January 2004. As a part of the acquisition process, CSIL subsidiary Systat Software Inc. has currently obtained the exclusive worldwide license to distribute the Sigma-series product line from SPSS Inc. The agreement will further lead to the acquisition of all related customers, personnel, and fixed assets and comes with the option to purchase all related intellectual property, including brand names and trademarks, after three years. The Sigma product line is designed specifically to meet the requirements of research scientists and engineers, enabling collection, analysis and presentation of scientific data. The market for the product includes research professionals in a range of fields including life sciences, environmental sciences, medical research chemistry and engineering. The Sigma product line comes with a user base of over 100,000, strong entrenchment in the pharmaceutical / biotechnology space worldwide, a focused global sales network, existing robust revenue streams, high operating margins, positive net cash flows and high growth potential through leverage of CSIL’s existing domain strengths.

• CSIL has committed an investment upto Rs.10 million to communication technology innovator Esqube Communication Solutions Private Limited (ESQUBE). ESQUBE is a venture of Indian Institute of Science faculty incorporated with the objective of working towards the creation of innovative technologies that lend to commercial applications and intellectual property in its focus domains. CSIL will also provide post-development worldwide sales and marketing support to ESQUBE’s product and technology pipeline. This initiative takes forward CSIL’s continuing investment in disruptive technologies like MEMS and its own initiatives towards developing IP in 802.11a technology, a globally recognised wireless technology standard that delivers significant performance.

• CSIL initiated a partnership with Texas Instruments (TI) to be a Product Reseller for TI’s range of DSP Tools in the ASEAN market. With this agreement, CSIL has created the first overseas opportunity expanding the scope of its software products distribution business. CSIL already has a successful partnership with TI that has led to the establishment of over 150 TI DSP labs in various Indian universities.

• CSIL has incorporated a fully owned subsidiary in Singapore. The subsidiary will initially center on the extension of the TI relationship to the ASEAN region and further strengthen CSIL’s other sales initiatives in the ASEAN region.

• CSIL has also initiated the incorporation of a fully owned subsidiary in Germany, its second direct presence in Europe after London. The Sigma product line is distributed internationally through SPL’s office in Germany that will be aligned with CSIL’s German operations once the entire acquisition process is completed.

• Key customers added this year - 3M, Abbot Gmbh, AGFA, Alcatel Alsthom, Allied Signal Iropharm, Amersham, Health, AstraZeneca, Audi, Aventis, Bausch & Lomb Inc, Bayer AG, BMW Rolls Royce, Bosch Telecom, BP International, Braun GmbH, British Aerospace, British American Tobacco, Carl Zeiss, Diamler Chrysler, Deutsche Bank, Dunlop, Merck, Ericsson Mobile, EXXON, Fujitsu, Glaxo Smithline, Johnson & Johnson.

• HR headcount increased by 13 in the third quarter to 228. Sales and marketing, research and business resources expanded while support staff continued to decrease.