Telecom Revenues for Q2 grows by 111%to Rs.518 mn;
61% of revenues and 75 % of profits from products business.

Highlights of the Quarter

o      6 new contracts signed, including 4 in the Telecom products business
o      Bagged a 15 Mn $ contract from Diemo for launch of mobile banking services in the Latin American Market.
o      BCGI acquisition contributes signficantly to growth,
o      Telecom products business records 111% growth YOY
o      Registers slight decline in top-line and bottomline on QoQ basis.

Hyderabad, India, July 29, 2008, Tuesday: Megasoft Limited (BSE CODE NO:532408), a transnational Intellectual Property-driven, product-based technology company, has reported revenues of Rs.850 mn and PAT of Rs.121 mn for the quarter ended June 30, 2008 as compared to revenues of Rs.601 mn and PAT of Rs.94 mn in the corresponding  quarter last year.

 
Commenting on the results, Mr. GV Kumar, Managing Director & CEO, Megasoft Ltd., said, “I am very pleased to report continued growth momentum in the telecom product business at Megasoft.  We have expanded our presence in new areas and into innovative new mobile services in rapidly growing service segments. In a demanding quarter wherein we faced a decline in profits due to higher operational costs and delay in receiving certain orders, Megasoft has managed to  do well in winning new deals and launching in new markets, that’s too in an un-certain economic climate.  This should lead to a strong long term recurring business for the company.

“Our pipeline remains robust and we expect to grow further in the next two quarters and end 2008 with significant growth”, he further added.