Kale Consultants Ltd - Investors

Kale poised for growth: Revenue up 26% & PAT up 229% in Q2 FY07

Mumbai, October 18, 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 second quarter ended September 30, 2006 with the company achieving revenues of Rs. 194.57 million as compared to Rs. 154.6 0 million for the corresponding quarter of the previous year, a growth of 26% .

The company recorded a PAT of Rs. 17.13 million for the quarter as compared to Rs. 5.20 million for the corresponding quarter of the previous year, a growth of 229%.

Commenting on the performance, Mr. Vipul Jain, CEO & Managing Director said, "Kale has been on a high-expansion curve and has accelerated this process through the path of organic and inorganic growth over the years. As witnessed again this quarter, Kale is well poised for a steady growth and we are confident that the trend will continue during the year."

Highlights for the Quarter ended September 30, 2006

Total Income

Profit After Tax

	" bmi, the second largest airline operating out of London Heathrow, one of the world's busiest airports went live in production with Kale's Revenue Accounting processing services

	One of the leading Gulf carriers has signed a multi-year contract with Kale for complete and comprehensive suite of Revenue Recovery and Protection Services. These services will include Sales Audit (both passenger and cargo), Interline Audit (passenger and cargo), RBD Audit, BIDT Audit as well as GDS Billing Audit. This is a truly remarkable achievement by Kale as this will be the first time an airline has contracted for such a comprehensive set of audit services from a single vendor

	Kale's industry-standard proration solution - APEXT, has once again proved itself to be the best-of-breed proration solution globally. One the leading Asian carrier has selected APEXT for automating passenger ticket proration. The carrier has signed a five year contract with Kale, and Kale has commenced the implementation project

	Indian (earlier Indian Airlines), one of the largest regional airlines in Asia went live with CSPT- the Enterprise-Wide Cargo Solution. 10 stations of the airline have gone live. Indian Airlines has signed the contract with Kale for the complete suite of CSPT solutions, provided on a hosted basis

	Kale is proud to announce that it has become an "Advanced Business Partner" of IBM. As an Advanced level participant of 'PartnerWorld Industry Networks' : IBM's partnership program for ISVs, Kale has access to a comprehensive assortment of technical, informational, general business, sales and marketing services of IBM

Kale celebrated its 20th anniversary on 16th September, 2006. Speaking on the occasion, Mr. Vipul Jain said "From modest beginnings to attaining international prominence, Kale Consultants has indeed come a long way in its odyssey of being a global software solutions company. Our vision 20 years ago was to be among the top 3 providers of choice in the markets we serve. This vision and our values have remained constant even as the company has evolved. Today, we see that vision becoming a reality."

With a solution suite based on domain knowledge, Intellectual Property Rights and high-end value creating services, Kale has acquired a competitive edge in the global market. Kale today successfully combines four businesses - Products, IT services, BPO services and Hosted Solutions - under one roof servicing the complete Travel & Transportation industry.

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

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.