Operational Highlights for the Quarter ended December 31, 2006
	Kale & the International Air Transport Association (IATA) announced that they will work together to bring e-freight to India. IATA has selected Kale to be the nodal agency to coordinate activities required to implement e-freight in India.
	Kale has been selected as a finalist for the NASSCOM Innovation Awards 2006 in the category of “Business Model Innovation” in their preliminary round held in December. Mr. Vipul Jain will receive an award from the Hon'ble Prime Minister of India - Dr. Manmohan Singh on 9th February 2007. Kale will also be profiled in NASSCOM's Showcase of Innovation Book 2006
	IIT Kanpur has honored Mr. Narendra Kale, Chairman Kale Consultants Ltd. with "The Distinguished Alumnus Award" for the year 2006-07. This is the highest award given by the institute to its alumni in recognition of their achievements of exceptional merit. Having reviewed Mr. Kale's contribution to the IT industry and his exemplary vision and leadership skills, he is being conferred the award for 'Excellence in Entrepreneurship'.
	EVA Air has signed a five year contract with Kale for APEX™, kale’s industry standard proration solution. With APEX™, EVA Air will be able to implement industry best practices in proration and bring about substantial improvements in accuracy and efficiency of proration process.
	SkyTeam, the global airline alliance, selected Kale’s APEX™ as a Neutral Fare Proration (NFP) engine for IATA’s First & Final (F&F) Billing Service. With this development, Kale added the entire global airline alliance of SkyTeam including Air France, KLM, Korean Air, Alitalia, CSA, Aeromexico, Aeroflot to its customer list. Continental Airways, NorthWest Airlines and Delta are existing Kale customers. All SkyTeam alliance members will now use Kale’s APEX™ for their F&F settlement. Mr Henri Dillies, Vice President - Revenue Accounting, Air France, and official spokesperson for SkyTeam Revenue Accounting business said, “We have no doubt that Kale, with its delivery experience and commitment to the airline industry, has the mettle to be our strategic partner for proration. We selected Kale’s APEX™ as we believe it is a good proration engine and will provide accurate results which will have a positive impact on our cash flows and will improve the efficiency of the interline process.”
	TAP Portugal, the national airline of Portugal signed a contract with Kale to implement Kale’s fully integrated enterprise-wide cargo solution, known as CSP™. This contract further cements the already strong relationship between TAP Portugal and Kale. For over 5 years TAP Portugal has been using Kale’s highly regarded passenger proration solutions. With the signing of this contract, both companies will extend their long term and mutually beneficial relationship. Americo Costa, VP Cargo at TAP Portugal said, “We selected Kale’s solution because we believe CSP™ will give us the right platform on which to grow our business. Having worked with Kale Consultants for the past 5 years, we know that they are reliable, and provide a very high level of service. This is important to TAP as we strive to build long term relationships.”
	Kale has achieved another world-first: Yemenia (the national flag-carrier of Yemen) has signed a multi-year contract for Kale to provide our complete and comprehensive suite of Revenue Recovery and Protection Services. Kale will provide Yemenia with Sales Audit (both passenger and cargo), Interline Audit (again, both passenger and cargo), RBD Audit, BIDT Audit as well as GDS Billing Audit. This is the first time in the industry that an airline has signed an agreement with a single vendor for such a comprehensive range of audit services.
	Kale has made a foray into the Logistics space by signing on Direct Logistics, the multinational freight-forwarding & logistics group,. Direct Logistics chose Kale to develop a web-enabled solution to automate their ocean, air and multi-modal freight operations. The solution will encompass various functions including sales, export, import and tracking. The solution will also provide on-demand as well as routine management information to better manage operations. Capt. Sunil Devrani, Managing Director, Direct Logistics said, “In Kale, we found a trusted partner who has a long history of providing value-based solutions and developing successful customer relationships. Kale’s in-depth domain expertise, professional approach and technological competence are very impressive.”

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: 91-22-28272500
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.