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Wednesday, January 23, 2008

Rolta announces acquisition of TUSC for aprx. $45mn

Rolta, one of India’s leading IT companies, specializing in GIS/GeoSpatial Information Systems, Engineering Design, and Enterprise Information & Communications Technology, today announced the acquisition of Broech Corporation, doing business as “TUSC”, an IT Consulting Company specializing in ERP applications as well as Database and Business Intelligence solutions, based on Oracle technologies. The consideration for this transaction is about US$ 45 million, including escrows and earn-outs. Rolta expects this transaction to be immediately accretive to shareholder value in the current fiscal year ending in June 2008.

As a part of its systematic and aggressive growth plans, Rolta has adopted a clear acquisition strategy of taking over companies that provide a synergetic mix of Technology and IPR, enabling Rolta to move up the value chain for addressing complementary markets. This is the second acquisition by Rolta in a span of six months and will bring to Rolta a strong portfolio of products and customers; improved access to complementary markets and industry service lines; and strengthen its global delivery model; while continuing to leverage its existing core competencies in the GeoSpatial and Engineering domains.

TUSC is headquartered in Chicago, with excellence centers and offices across the US that are staffed by over 160 consultants. Established in 1988, TUSC has served over 2000 customers in diverse sectors like Utilities, Energy, Engineering, Manufacturing, Finance, Insurance, Retail, Government, Healthcare, Services, Transportation, and Technology. Over 50% of revenues are generated from repeat business. TUSC is a profitable Company and its 2007 revenues were in excess of US$48 million, with a CAGR of more than 30% over the past 4 years. The Company has been listed twice on the ‘Inc. 500 Fastest Growing Private Companies’ list in the US.

TUSC holds a global reputation as a source of unsurpassed expertise in high-end consulting for large-scale ERP applications, Fusion Middleware, Business Intelligence and core Database Technology. TUSC is one of only a handful of companies worldwide that have the highest level of Partner certification for both ERP and Oracle Technology. TUSC currently has five “Oracle Master” level consultants on its staff, giving the company an unmatched reputation globally for outstanding expertise in Oracle technologies. Over the years, TUSC has published many books that most consider standard reference material for any Oracle specialist. This track record enabled TUSC to win Oracle’s most prestigious award - the TITAN award, for the third time, as an Oracle Partner in 2007.

TUSC has also developed and owns a broad range of intellectual property. For example, one of its software products – ‘Periscope’ is an advanced Data Mining and Virtualization tool that helps customers access their enterprise data from disparate data base platforms, drastically reducing the cost of integrating and administrating multiple data sources residing on different systems. Their ‘Knowledge Framework’ is industry leading and has won various Best Practices awards. Their ‘real-time database monitoring and pro-active alert’ software suite is in use by many Fortune 500 Companies, across 1000+ databases.

The three founders of TUSC, Rich Niemiec, Joe Trezzo and Brad Brown, will continue to lead the company. Their leadership of various Oracle User Groups and participation in Oracle Technology advisory councils evidences their standing in the industry, duly recognized by awards, like the Ernst & Young ‘Entrepreneur of the Year’ award. With each having over 20 years of experience, this management team brings a wealth of experience to Rolta. As a wholly owned subsidiary of Rolta, TUSC will continue to lead its operations from headquarters in Chicago, USA.

TUSC’s offerings are focused towards mission-critical applications, providing significant opportunities in the Rolta customer base, especially in the Engineering and Utilities sectors because of a workflow that requires the integration of Design, Engineering, Mapping and ERP. The continued development of Fusion Applications by Oracle presents another significant opportunity for this business. While today TUSC operates completely on a US based delivery model, by leveraging Rolta’s offshore infrastructure and domain expertise, the Company expects TUSC’s businesses to achieve better margins, higher scalability, and provide greater value to customers worldwide.

Mr. K. K. Singh, Chairman and CEO of the Rolta group, said, “We are extremely pleased with the acquisition of TUSC who shares our passion for excellence. This brings into the Rolta fold, a company that has strategic maturity, exceptional technology, commendable work ethic, established branding and a strong portfolio of high-end consulting services. We will now be able to provide Enterprise level solutions to our customers worldwide, thereby increasing the value for our stakeholders”.

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