Cranes Software's consolidated Q2 operating revenues higher by 31%

Net Profit higher by 66% at Rs. 136.6 million

EPS up by 66% at Rs. 13.4 per share

Bangalore, October 27, 2005:
Cranes Software International Ltd. (Cranes Software), a global scientific and engineering software solutions provider, today announced its audited results for the quarter ended September 30, 2005.

Commenting on the performance, Asif Khader, Managing Director, Cranes Software International Limited, said:

"I am pleased to report another strong set of numbers in the second quarter and first half of the current fiscal year. While our business continued to expand on the basis of our operational initiatives, we are beginning to drive organizational efficiencies to create further margin upsides.

We see the expansion in our ongoing financial performance as a reflection of our key strategic initiatives that we take on board. We are now looking at developing the next level of opportunity for our business by expanding presence in the enterprise software segment. Significant gains can now be achieved by continuous enhancements to the portfolio by leveraging existing strengths in product development and global marketing."

Cranes Software Group performance review:

Corresponding quarter performance:

Q2 FY 2006 (July - September 2005) v/s Q2 FY 2005 (July - September 2004)

• Operating revenues up by 31% to Rs. 477.1 million compared to Rs. 363.9 million.
  
  
• Net profit after tax higher by 66% to Rs. 136.6 million from Rs. 82.3 million.
  
  
• EPS up at Rs. 13.4 compared to Rs. 8.09

• Operating revenues higher by 31% to Rs. 948.6 million compared to Rs. 724.1 million.
  
  
• Net profit after tax up by 48% to Rs. 266.2 million from Rs. 179.3 million.
  
  
• EPS up at Rs. 26.19 compared to Rs. 17.64.

• HR headcount up by 100 people to 454 in the first six months of FY2006:
  
  
  • Significant expansion of the global sales and marketing team in H1 through new recruitment in the U.S., Germany and Asia Pacific.
  • Key additions to R&D teams focused on statistical analysis, engineering design and wireless domains.
  • Continuous increase in consulting team following initiation of operations a year back.
  
  
• Cranes Software acquires the worldwide marketing & sales rights of InventXePM
  
  Cranes announced that it has acquired the sales and marketing rights of InventX™ePM, a Project Portfolio Management Solution. Cranes will make substantial investments and commit resources to maximize the growth potential from InventX™ePM. The support will also extend to customized solutions around the product framework for current and future customers worldwide.
  
  Cranes Software will provide product development and implementation support for InventX™ePM Enterprise Project Portfolio Management solution through a dedicated offshore development center. The Company plans to invest $3 to $4 million over the course of the year and employ 50 to 60 people towards this effort.
  
  
• Cranes Software Licenses Equbits Predictive Modeling Framework
  
  Cranes announced a strategic alliance between its wholly owned subsidiary Systat Software, Inc. and Equbits LLC, the leading provider of SVM (Support Vector Machines) based predictive modeling software. The partnership will allow SYSTAT customers to take advantage of Equbits SVM modeling capabilities, including model building and tuning and enhanced enterprise level integration between the Company's products. The integrated module will be marketed under the SYSTAT brand which has over 65,000 users globally.
  
  
• Cranes Software launches Japanese language version of SYSTAT 11
  
  Cranes introduced the Japanese language version of its statistical analysis software SYSTAT 11. This new language version will now reach users in Japan with a local language graphic user interface, online helpdesk support and translated technical manuals. This is the second localized software launch by Cranes in Japan, following the previous release of the SYSTAT 10.2 in Japanese.
  
  
• Cranes Software brings interoperability solutions to Indian embedded software industry
  
  During this quarter the Company partnered with Mapusoft Technologies, a US based leading provider of embedded software re-usability solutions and services, Through this partnership Cranes has announced the availability of a range of globally renowned porting products and abstraction solutions focused on the Indian embedded software industry. These solutions provide users the freedom to move between RTOS's while leveraging on the application programming interface knowledge that they are most familiar with. Cranes will be the authorized distributor for MapuSoft products in India, making available OSChanger™ and OS Abstractor to the embedded industry.
  
  
• Introduction of new software upgrades and versions in India
  
  During the quarter, Cranes continued to introduce new versions / updates of its software products in the Indian market.
  
  
  • Cranes and The MathWorks launched the Aerospace Blockset 2 in India, bringing quality flight simulation graphics to desktop users. The tool makes modeling and simulation more accessible and economical to the aerospace engineering community in India.
    
    
  • Cranes and The MathWorks also announced the availability of Communications Blockset 3 for Indian users. This would provide engineers enhanced features for the design and simulation of the physical layer of communication systems and components, such as commercial or defense wireless and wireline systems.