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Majority of High-Tech and Discrete Manufacturers Say Business Goals Hindered by Outdated Order Management Processes

Infosys Technologies "Industry Roundtable" Reveals High-Tech and Discrete Manufacturers Face Increasing Challenges to Serve Customers, Manage Inventory & Grow Business

July 5, 2005 -- Fremont, CA: Preliminary results from a comprehensive survey and analysis of key high-tech and discrete manufacturing executives says their businesses goals are undermined by expensive, antiquated order management systems and processes that weaken customer relationships, increase inventory management costs and greatly limits their company's ability to grow.

The partial results of the research were shared by Infosys Technologies, a leading consulting and information technology solutions provider, at AMR Research's Supply Chain Conference in early June. The conference was attended by operations, I.T., and supply chain executives from semiconductor manufacturers, original equipment manufacturers, and fabrication companies. Additional insights from the research will be available later this year.

According to Partha Bose, Solution Leader for Infosys Technologies, some 64 percent of research respondents indicated they have limited or immature order management capabilities.

"It's quite clear that manufacturers are not satisfied with outdated processes and technology across geographies and divisions," Bose said. "The results of the research are even more remarkable when you consider that more than fifty percent of the executives said the order management process was critical to customer experience and satisfaction."

These issues were echoed during the round table discussion. According to one participant, "Currently it is challenging for customers to do business with us. Lack of visibility to global data hampers accuracy of promise dates and service personalization."

"To address this issue," Bose said, "a metrics-driven approach can help companies create differentiated service and delivery capabilities for profitable and strategic customers. Capturing insights hidden in transaction data is essential for aligning performance to key metrics such as customer profitability, order productivity and revenue leakage. Infosys has pre-defined maturity models and metrics-driven change programs that accelerate realization of measurable business results."

Romit Dey, Associate Vice President, Infosys Technologies, added, "Most high-tech companies experience rapid changes in order volumes and have grown through multiple acquisitions and through diversification of customer segments. This makes it difficult to seamlessly engage new customers and grow the business across product lines and geographies. Over time, companies should invest in areas such as multi-tier visibility of demand signals and guided selling."

According to David Caruso, Senior Vice President of Industry Research, AMR Research, "Leading companies have recognized that demand-driven operations are the best way to create customer loyalty and enhance operating efficiencies. A customer-centric approach in every aspect of the order process is the key to significant market advantage. AMR has defined this through the Demand-Driven Supply Network (DDSN) framework that is relevant across multiple industries."

The Order Management Benchmarking Study surveyed 150 leading companies in the high-tech and discrete manufacturing industries. The results of the survey can be obtained by contacting Infosys at ITOM@infosys.com.

About Infosys High-Tech and Discrete Manufacturing Practice

Infosys helps clients enhance their competitive advantage. Infosys solutions and services address the biggest challenges faced by high-tech and discrete manufacturing companies today - compressed product life-cycles, supply chain agility, global visibility and collaboration, better customer management, improved R&D productivity and regulatory compliance. Our solutions integrate business process improvements, application implementation and integration and global sourcing of operations to deliver maximum business value in a fast and predictable way.

About Infosys Technologies Limited

Infosys (NASDAQ:INFY) defines, designs and delivers IT enabled business solutions. These provide our clients with strategic differentiation and operational superiority, thereby increasing their competitiveness. Each solution is delivered with the industry-benchmark Infosys Predictability that gives our clients peace of mind. With Infosys, they are assured of a transparent business partner, business-IT alignment with flexibility, world-class processes, speed of execution and the power to stretch their IT budget by leveraging the Global Delivery Model that Infosys pioneered. Infosys has over 36,000 employees in over 30 offices worldwide. For more information, visit www.infosys.com

Infosys Safe Harbor

Certain statements in this release are forward-looking statements within the meaning of Section 27(a) of the U.S. Securities Act of 1933 and Section 21(e) of the U.S. Securities Exchange Act of 1934, and involve a number of risks and uncertainties that could cause actual results or events 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 filed on April 26, 2005 and Registration Statement on Form F-3 filed on December 20, 2004, and the amendments thereto filed on January 18, 2005, April 26, 2005 and May 23, 2005.

These filings are available at www.sec.gov Opens in new window . Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.

For further information, please contact:

The Americas
Peter McLaughlin
Infosys Technologies Ltd, USA
Phone: +1 213 622 4949, Ext 206

Asia Pacific
Sarah Vanita Gideon
Infosys Technologies Ltd, India
Phone: +91 80 4156 4998

Cristin Balog
Infosys Technologies Ltd, Australia
Phone : +61 3 9860 2277
Antonia Maneta
Infosys Technologies Ltd, UK
Phone: +44 0 207 715 3499

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