Hinduja TMT acquires 100% of an ITES Co. - Source One Communications Inc. USA Has operations in USA, Canada, Philippines and Revenue of US$ 16 Mn.

Mumbai, 30th September 2004

Hinduja TMT (HTMT) has signed an agreement with Georgeson Shareholder Communications, Inc. to acquire 100% of Source One Communications Inc.USA (SOC) in an all cash deal of approximately US$ 8.5 Million funded entirely through internal accruals.

SOC has operations in New Jersey (USA), Toronto (Canada) and Manila (Philippines) through a subsidiary called Source One Communications Asia (SOCA). SOCA is a joint venture company set up in 2001 between SOC (57.5% ownership) and Customer Contact Center Inc.(c3), Manila (42.5% ownership). It will be recalled that HTMT recently acquired controlling interest in c3, which has independent revenue of USD 6.8 Million and for which HTMT paid USD 3.9 Million. With the acquisition of SOC and its current shareholding in SOCA, HTMT has consolidated its ownership of SOCA.

SOC had a consolidated revenue of USD 15.87 Million in its fiscal year ended 30th June 04. It currently operates a total of 500 call center seats in USA, Canada and the Philippines which is growing today. Source One has won the accolades of its customers by rendering high quality services through its On-shore, Near-shore and Off-shore Call Center facilities at USA, Canada and Philippines. It has multi lingual capabilities of French & Spanish besides English. The company has strong Marketing and Client Management Teams located in New Jersey providing well-knit client interaction.

Together with c3, the total number of seats in Manila amount to over 1000. The total number of clients served by SOC, SOCA and c3 are 22. These clients include Multinationals and Fortune 500 companies in different verticals like Pharmaceutical Products, Consumer Electronics and Household Products, Financial Services, Energy and Utilities.

Commenting on the SOC acquisition, Mr. K. Thiagarajan , Chief Operating Officer observed: “Source One is an excellent strategic fit to our past acquisition of c3. The current acquisition is a definitive step in the evolution of HTMT into a global ITES Intimation to Stock Exchanges

Company. With this, HTMT is now in a unique position by having a strong front end, enhanced Service offerings, verticals and presence in multiple geographies. Cross selling BPO, Call Center Services with multi lingual capabilities, and IT in diversified verticals across different geographical locations now provides HTMT a very strong competitive edge against its peers leading to potential scaling and higher profitability. We believe that the scaling up of both SOCA and c3 operations based on excellent customer response to the quality and competitiveness delivered, is likely to considerably improve the topline and bottomline of the entities.”

About HTMT :

Hinduja TMT Ltd. (HTMT) is one of India’s premier IT houses, focusing on information technologyenabled services (ITES) and business process outsourcing (BPO) besides IT services. HTMT is ranked among the top 15 ITES-BPO players in India employing over 2200 people and ranked first in the “preferred employer” category in the employee satisfaction survey conducted by Dataquest and IDC. HTMT’s expertise is in the areas of insurance, financial services, manufacturing and telecom. The company has its delivery center in Bangalore and Mumbai and has marketing offices in the USA, UK and Europe. HTMT has world-class infrastructure in line with global standards of environment, resources and deliverables. It has recently acquired majority control in Customer Contact Centre Inc. (c3), a Philippines based call centre company. HTMT is one of the few companies in the BPO business that has output quality very close to six sigma standards and has set its eye firmly on a continuous improvement program. HTMT is SEI CMM Level 4 assessed, ISO 9001:2000 compliant and recommended for BS 7799 Certification.