Kale on the growth path: Revenue up 38%

July 25, 2005 - Kale Consultants Limited (Kale), the leading provider of software solutions and outsourced services to the Airline & Travel industry, has recorded revenues of Rs. 137.69 million for the quarter ended June 30, 2005 a s compared to Rs. 99.98 million for the corresponding quarter of the previous year, a growth of 38%.

The company recorded a PAT of Rs 4.97 million for this quarter as compared to Rs. 1.59 million for the corresponding quarter of the previous year, a substantial growth of 214%

The High Court of Bombay has approved the merger of Kale e-travel Technologies Limited (formerly Cognosys) with Kale Consultants Limited. With the court's approval, the formal process of amalgamation is complete, effective 1st April 2005 .

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, “This financial year has started on a very positive note for Kale. We have achieved significant milestones in this quarter. We have signed a 5 year contract to supply CSP™ in a hosted environment to a large Indian carrier and have renewed our contract with Asiana Airlines. ”

Highlights for the Quarter ended June 30, 2005

NFP Service:
APEX™ is the indu stry standard proration solution for Neutral Fare Proration (NFP) selected by AIA (ARC, IATA and ATPCO) as one of the two co-existing solution offerings to the industry, other being CIPS from ATPCO. APEX™ has been commissioned for usage by 2 of the top-10 airlines, Northwest Airlines (4 th largest in the world) and Continental Airlines (6th largest in the world), since March 2005. Three other airlines have selected Kale for NFP and are in the process of implementation.

Cargo Solutions:
Indian Airlines, one of the largest regional airlines in Asia signed a five year contract with the company for CSP™ - the Enterprise-Wide Cargo Solution. This contract is for the complete suite of CSP™ solutions, provided on a hosted basis across 63 domestic and international stations of the airline. To offer a complete solution, Kale will also provide and maintain hardware at 10 Indian Airlines stations.

This is an important milestone for Kale as it marks the launch of CSP™ Rel 2.0 on a hosted basis..

Asiana Airlines, one of the top 20 cargo airlines globally, and a CSP™ user since December 2003, has reinstated its faith in the solution by renewing its contract with Kale. CSP™ provides Asiana a technology platform that enables the airline to deliver superior customer service while improving yields and reducing unit processing costs.

Managed Process Services (Kale MPS™):
Revenues from the long term, multi-year contracts from Kale MPS™ grew by 48% to Rs. 54.33 million over the corresponding quarter of the previous year. The company has introduced a new service - the Cargo Revenue Recovery and Protection Service and successfully commissioned it for one of the largest Asian Carriers. This opens up another avenue for Kale to deliver bottom line value to the airline community.

Investor Relations
Kale Consultants Ltd is committed to create long-term sustainable shareholder value through successful implementation of its growth plans. The company's investor relations mission is to maintain an ongoing awareness of its performance among shareholders and financial community.

For additional information, please contact:

Mr. Sumeet Nadkar
Chief Financial Officer
Kale Consultants Ltd.
Tel: 91-22-28259580
Email: Sumeet_Nadkar@kaleconsultants.com

Safe Harbor

Certain statements in this release concerning our future growth prospects are forward-looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.