Kale’s consolidated revenue for Q3 up 41%, net profit up 14%

Brief highlights: Kale adopts new positioning – Industry Solutions, Customised Approach to reflect their industry knowledge while servicing individual client requirements Increased focus on tapping the vast and emerging potential of logistics and travel industry in India Signed 8 new deals in the quarter

Mumbai, January 25, 2008: - Kale Consultants Limited (Kale), the leading end-to-end solutions provider to the Airline, Logistics and Travel (ATL) industry, has recorded consolidated revenues of Rs. 286.78 million for the quarter ended December 31, 2007 as compared to Rs. 202.80 million for the corresponding quarter of the previous year, a growth of 41%.

The PAT for the quarter stood at Rs. 16.08 million as compared to Rs. 14.09 million for the corresponding quarter of the previous year, a growth of 14%.

The consolidated revenue for the nine months is Rs. 882.93 million compared to Rs. 628.33 million for the corresponding period last year, a growth of 40%.

The unaudited revenue figures for the listed entity (Kale Consultants Ltd.) are as follows:
	Operational revenues of Rs. 199.87 million were recorded for the quarter ended December 31, 2007 as compared to Rs. 197.65 million for the corresponding quarter of the previous year
	The PAT stood at Rs. 8.26 million for the quarter ended December 31, 2007 as compared to Rs. 12.18 million for the corresponding quarter of the previous year.

Commenting on the Q3 FY08 performance, Mr. Vipul Jain, CEO & Managing Director said, “We are on track for a 40% growth in FY 08 and are working towards cost optimisation in the next few quarters as we integrate global operations with Zero Octa. This acquisition has made Kale the global leader in airline revenue management and accounting space and we are seeing increased traction with customers. We also expect to realise the tremendous growth potential in the logistics and travel sectors in India and are gearing up to offer our global expertise to the domestic market.”

Highlights

Industry Solutions, Customised Approach

Kale has gained a wealth of experience working with top global leaders in the Airline, Logistics and Travel (ALT) industry. Having developed solutions for the airline industry that drive industry-wide initiatives like F&FTM interline billing, Kale will now be looking at replicating this success in other target markets like logistics and travel. Kale’s solutions and platforms incorporate domain knowledge and industry best practices. Being neutral and independent, Kale works well with other industry players facilitating seamless integration of applications thereby adding value to clients. Kale offers end-to-end ‘Industry Solutions’ that deliver planned business benefits and cater to the current as well as future needs of their customers. At the same time, Kale recognises that every customer has unique requirements, based on their business models and goals, competitive challenges, size, cultural sensitivities, etc. Kale therefore takes a ‘Customised Approach’ with flexibility in delivery models and pricing structures. We work collaboratively to architect solutions that provide optimised value to our customers.

Increased Focus on High-Growth Logistics and Travel Industry in India

The Indian market is growing rapidly in all three industry sectors of Airlines, Logistics and Travel. Kale plans to increase its focus on the domestic market and bring its global experience and world-class platforms to the Indian industry. The growth in the logistics industry is directly related to the growth in the Indian economy. With India's gross domestic profit (GDP) growing at over 9 per cent per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is expected to reach a market size of over $125 billion by 2010. The corporate travel industry in India is highly unorganised, like the leisure travel industry, with many small and medium size players servicing very few corporates or SMEs. This presents a huge opportunity for travel companies to harness technology and improve processes and offerings. A rough estimate would put the corporate travel industry worth close to Rs. 10,000 crore and a growth rate of 30% YoY. India is also becoming a power market for online travel management. PhoCus Wright Inc. says the online travel industry in India is expected to grow to Rs. 8,500 crore by 2008.

Client Acquisitions in Q3 FY 2007-08

ASJ (Air India – Singapore Airport Terminal Services Joint Venture Company) for Airport Infrastructure Support services and Cargo Custodian Management System for Bangalore Airport Operations QuikJet Cargo for CSP® (end-to-end Cargo ERP solution) on a hosted basis Leading European carrier for outsourced Airmail Accounting services Leading African Airline for Interline Payables Verification Large carrier from the Middle East for PAX Sales Audit Upcoming all-cargo airline based in India for its end-to-end cargo ERP solution – CSP® on a hosted basis

For additional information, please contact:

Mr. Sumeet Nadkar
Chief Financial Officer
Kale Consultants Ltd.
Tel: 91-22-67808888
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.