Calsoft accelerates buy out of Inatech - Strengthens its Oracle practice

Chennai, 17th December 2007: Calsoft today announced the signing of a Memorandum of Understanding (MOU) for acquisition of the minority shareholding of 49% in Inatech Infosolutions, India (Inatech). The consideration for the acquisition of this part is valued at approximately USD 6.17 Million and will be paid through a combination of cash & stocks, subject to due regulatory approvals as applicable.

Earlier in Nov 2006, Calsoft had taken 51% majority interest in Inatech, a specialized end-to-end Oracle solutions provider in the enterprise space. As part of the agreement, Calsoft was to originally acquire the balance in November 2009.

Mr. S. (Sam) Santhosh, Managing Director & CEO, Calsoft, said, “Inatech’s good performance, their management team and European presence have encouraged us to accelerate the buy out. We expect this transaction to be accretive to Calsoft’s earnings. Given the size of our organization and the complementary nature of our businesses, we should recognize substantial revenue synergies and significant economies of scale.”

Inatech has posted consolidated revenues of Rs30.54 crores (US$ 7.5million) and with profits after tax of Rs 3.6 crores (US$0.9 million) for the half-year ended 30 September 2007.

Mr. Vedante Srihari, CEO & Founder of Inatech added, “There is an increasing demand for high quality Systems Integrators who can deliver globally. Now is the time for Inatech to join Calsoft and leverage synergies.”

Moving forward, Mr. Vedante Srihari would head Calsoft’s Enterprise Solutions strategic business unit.

Forward Looking Statements

Some of the statements in this release that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highly-competitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.

About Calsoft

California Software Company Ltd (Calsoft) is a public limited company in India with a global presence. Its development practices are certified at CMMi Level 5. Founded in 1992, Calsoft group including subsidiaries currently employs over 1000 professionals. The group has development centers in Chennai, Bangalore and Mysore in India and Pleasanton, (California), Alameda (California), Boston (MA) in the USA. Calsoft group has marketing offices in the US, UK, Singapore, Dubai, Copenhagen and in India. Calsoft is listed in India at NSE (cali.ns) and BSE (cali.bo). For more information on Calsoft visit www.calsoft.co.in