Mumbai, July 30, 2007 - Kale Consultants Limited (Kale), the leading provider of software solutions and outsourced services to the Travel & Transportation industry, has recorded Operational revenues of Rs. 205.16 million for the quarter ended June 30, 2007 as compared to Rs. 170.15 million for the corresponding quarter of the previous year, a growth of 21 %.

The company recorded a PBT of Rs. 13.49 million as compared to Rs. 18.03 million for the corresponding quarter of the previous year. The PAT stands at Rs. 11.65 million excluding the exceptional item of sale of property situated at Andheri.

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, “The sharp appreciation of the rupee is a challenge for all of us in the IT industry. Our growth and profitability would have been better but for this impact. We believe that our differentiated business model will enable us to address these challenges effectively in the near term.”

Highlights for the Quarter ended June 30, 2007

The profit after tax is Rs 114.9 million, with the sale of our office premises in Andheri contributing Rs 103.3 million. The premises were sold because they were inadequate to meet our needs for growth and the company has a long term plan to build it’s own campus at Thane.

In terms of customer acquisitions during the quarter:
	A leading West African airline is in the process of outsourcing its Passenger Revenue Accounting functions to Kale-MPS®.
	A leading travel agency in India has engaged Kale to develop an integrated solution platform to connect its multiple suppliers and enhance their ability to offer multiple products and cross-selling opportunities. In addition the solution will also cater to complete automation of operational fulfillment activities of the company’s corporate travel division.
	Following the implementation of a Custodian Management system at an International airport in India, one more airport has contracted Kale for implementing a similar system.
	An online hotel reservations specialist and leading tour operator has engaged Kale to develop a hotel management component to their overall online offering.
	A global life insurance company has contracted Kale to outsource the support of their AllFusion Gen applications.

Future outlook
We are seeing continuing traction in our core areas of revenue management. We are also gaining customers in travel and logistics, which is in line with our strategy to address the increase the addressable market to progressively cover the entire Travel and Transport industry.
The order book is robust and in excess of US $ 100 million and growing.

 

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: 91-22-6780 8888
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.