Kale poised for growth: Revenue up 31% & PBT up 262% in Q1FY07

Pune, July 25, 2006 - Kale Consultants Limited (Kale), the leading provider of software solutions and outsourced services to the Travel & Transportation industry, today announced strong financials results for the first quarter ended June 30, 2006 with the company achieving revenues of Rs. 170.15 million as compared to Rs. 129.73 million for the corresponding quarter of the previous year, a growth of 31%.

The company recorded a PAT of Rs. 16.88 million for the quarter as compared to Rs. 4.97 million for the corresponding quarter of the previous year, a growth of 240%.

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, "We have witnessed steady growth during this quarter and we are confident that the trend will continue during the year. Our order book looks very healthy and we believe that Kale has the required vision, business model and execution capabilities to grow in a sustainable basis over the medium to long term. Also as our revenues scale, our business model will ensure that our profitability is substantially enhanced."

Highlights for the Quarter ended June 30, 2006

Total Income

Profit Before Tax

Profit After Tax

Operational Highlights for the Quarter ended June 30, 2006
	bmi, the second largest airline operating out of London Heathrow, one of the world’s busiest airports has signed a contract for Revenue Accounting processing services with Kale. The value of the contract over a 5 year period is estimated to be approximately GBP 8 million.
	Kale has signed 4 new contracts with existing customers for new services. These include Reservation Booking Designator (RBD) Audit Services offered on an outsourced basis to two large Gulf carriers, Audit services to a large Asian airline and portal development for a large Indian airline.
	Indian (earlier Indian Airlines), one of the largest regional airlines in Asia went live with CSP™- the Enterprise-Wide Cargo Solution. 3 stations of the airline went online out of a total of ten stations. Indian Airlines has signed the contract with Kale for the complete suite of CSP™ solutions, provided on a hosted basis.
	Travel Technology Solutions group continues to surge ahead. The travel group has signed up for the next phase development of NetProfile, with BCD Travel (erstwhile BCD Travel Travel Solutions), the leading provider of global travel logistics. Online Travel Corporation (OTC), one of UK's leading online travel suppliers, has also signed a contract with Kale.
	Kale has added another milestone in its journey of Information Security compliance. Kale cleared the ISO 27001 registration audit for all Indian sites and has been recommended for the issuance of new certificate. Worldwide, BS7799 is getting replaced by ISO 27001 and Kale is one of the few early movers on this.
	This year as part of our marketing efforts for promoting and positioning Kale and CSP™ within the air cargo fraternity, we sponsored the award for 'Best Cargo Airline to the Indian Sub-Continent' at the 'Cargo Airline of the Year' award ceremony organized by Air Cargo News.

Expansion of facilities
Kale is expanding its facilities with a new software development facility at Noida and Managed Process Services (BPO) center in Pune. Both of these facilities will become operational by October 2006.

Pune will be the second BPO location which will have about 150 seats by end of this year.

Kale is expanding it’s outsourcing portfolio by offering to take over the end-to-end responsibility for development, maintenance, enhancement and global deployment of all their custom built or packaged software applications. Kale’s outsourcing services include Architecture & Integration, Application Development, Application Maintenance, Testing Services and Product engineering. These services are targeted at global customers looking at roll-out of standard application platforms across their various offices globally as well as product companies in the travel and transportation space.

Human Resources
Kale added more than 100 employees during the quarter. Kale continues to invest in creating strong training and recruitment engine to meet its growth opportunities.

“We are well on our way to touch the 1000 employee mark during this year, “said Mr. Ajit Singh Vig, Head of Human Resources, Kale. “Our employee policies and continuous effort to invest in our people have made Kale a preferred employer.”

For additional information, please contact:

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

Mr. Parag Someshwar / Mr. Manoj Bagadia
Equicorp.
Tel: 91-22-25121528
Email: equicorp@vsnl.net

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.