Business Highlights

--  HCL Technologies on US$ 2 bn annual run rate--  Margin expansion for the fifth consecutive quarter and second    consecutive year in a row--  Declining attrition for the sixth consecutive quarter--  Crosses 50,000 employee headcount    

Financial Highlights for the Year (US$): FY 2007-08

--  Revenues at US$ 1878.9 mn; up 35.2% YoY--  EBIT at US$ 341.4 mn; up 36.8% YoY--  Net Income (before foreign exchange gain/loss) at US$  351.4 mn up    49.1% YoY--  Dividend for Q4 stepped up 1.5 times to 150% taking total dividend    payout for the year to 450%--  22,937 gross addition and 8,724 net addition in head count taking    employee strength to 50,741 as of 30th June 2008    

Financial Highlights for the Quarter (US$)

--  Revenues at US$ 504.0 mn; up 27.4% YoY and 3.9% sequentially--  EBIT at US$ 98.4 mn; up 44.1% YoY & 10.9% sequentially--  Net Income (before foreign exchange gain/loss) at US$ 102.5 mn; up    76.6% YoY and 11.2% sequentially--  Dividend for Q4 stepped up 1.5 times to 150%, the 22nd consecutive    quarterly dividend--  5,317 gross addition and 939 net addition in headcount    

HCL is uniquely positioned as a co-sourcing partner because of theexperience it has created for its customers through continued momentum indemonstrating leadership in execution experience in multi-serviceengagements. HCL's four pronged Blue Ocean strategy covering serviceinnovation, pricing innovation, creation of new markets and technologydisruption continues to pay rich dividends with innovative partnerships andrevenue sharing business models being the highlights of this year.

"HCL has been able to maintain consistency in its growth over the lastthree years because of the investment we made in our transformation throughcreation of new services and new markets, and forging global partnerships,all with an objective of delivering value to our customers. We areconfident of the direction we have taken and believe that HCL's traditionof creating disruptive innovation will ensure it continues to stay ahead ofthe curve in the coming years," said Shiv Nadar, Chairman and ChiefStrategy Officer, HCL Technologies.

Commenting on the results, Vineet Nayar, CEO, HCL Technologies stated, "HCLregistered a YoY growth of 35.2% following a YoY growth of 42.4% last year.HCL registered a QoQ growth of 3.9%, following three successful growthquarters of 8.4 %, 7.4% and 5.2% QoQ respectively. HCL has expanded itsoperating margins for the second year in a row. HCL has grown revenue aheadof manpower growth second year in a row. HCL has demonstrated globalleadership in Remote Infrastructure Management (RIM) which was ranked No. 1ahead of all global players this year by the Black Book of Outsourcing - afirst in the Indian IT industry."

Commenting on BPO results, Ranjit Narasimhan, President & CEO, BPOServices, HCL Technologies stated, "During the year 2007-08, BPO revenuesgrew 21% ahead of headcount growth of 18%; this is the second year in a rowwhen we have expanded our margins. Going forward there would be a strongfocus on platform led services, the result of which will be visible in thecoming quarters."

Highlights for Forex gains/losses

HCL has adopted a policy of hedging its business from currency fluctuationthrough long terms forex covers given the fact that HCL focus is on longterm annuity based contracts. In the last three years, HCL has booked underthe head "Other Income," a cumulative foreign exchange gain of US$ 0.4mn (aloss of US$ 7.5mn in FY 06, a gain of US$ 79.2 mn in FY '07 and a loss ofUS$ 71.3 mn in FY 08). The FY 08 forex loss was based on average mark tomarket rate of Rs. 44.21 to a dollar as on June 30th. HCL continues toadopt a policy of hedging its business against currency fluctuation and hasoutstanding covers of US$ 2bn as of June 30th.

Key Catalysts for Growth

--  Our key geographies achieved significant milestones this year with US    and European revenues crossing the US$ 1bn and US$ 0.5bn marks,    respectively--  Engineering and R&D Services, Infrastructure Services and Custom    Applications witnessed accelerated growth reaffirming HCL's dominant market    position and competitiveness in these service lines respectively--  Among the verticals, Financial Services and Manufacturing crossed the    US$ 0.5 bn mark. The fastest growth was recorded in Life Sciences, while    Manufacturing and Media, Publishing & Entertainment continue to grow    consistently    

Year in Perspective

The HCL strategy embodying a unique kind of disruptive innovation in itsbusiness model focusing on Value Centricity and a Blue Ocean approach tobusiness has resulted in deepening customer relationships, creation of newmarkets and strategic partnerships where there is collaboration, goalalignment and substantive engagement.

Value Centricity

--  The momentum in inking transformational deals that began in 2005    continued this year with a total value of deals in excess of US$ 1 bn being    signed including eight deals worth US$ 310 mn this quarter--  HCL is uniquely positioned to deliver customer value with its blend of    onsite presence and offshore economics.  We have focussed in building    scalability in offshore through investments in Technology Hubs across    India, while expanding our onsite presence in geographies like Poland and    China--  HCL acquired Capital Stream, Inc., a US-based industry leader in    lending automation solutions.  This strategic acquisition is a part of    HCL's well structured M&A strategy and will enhance HCL's ability to    provide end-to-end solutions through product and multi-service delivery    capability to commercial and retail financial institutions globally--  HCL launched the SAP Revenue Recognition solution, pre-configured SAP    Metals template,  Auto Template for Auto ancillaries in the SMB sector and    solution to avoid SAP Business Information Warehouse Slowdowns that helped    customers reduce their total cost of outsourcing (TCO)--  The year, HCL also signed partnerships across verticals that focus on    delivering further value to customers. Some of these include partnerships    with Lombardi Software to deliver value to our customers in Life Sciences    (LSH) and Financial Services (FS) space, Quest Diagnostics in LSH and Misys    plc. and Chordiant Software in FS    

Blue Ocean

--  HCL launched Integrated Operations and Management Centre (IOMC) that    integrates offerings across Global Services, Infrastructure Operations and    Application Operations. It acts as a single window to deliver, manage and    monitor Infrastructure Support and Application Operations giving customers    increased efficiencies and enhanced business impact--  In continuation of co-creating value with our customers and partners    on a risk sharing model, HCL rolled out the Global Risk Reward Partnership    (GRRP) based on the principle of a joint ownership of a product. This year    HCL has initiated three new engagements under this model, including the    strategic partnership with CA, and entering into newer such engagements    with customers--  HCL signed the SAP Global Services partnership based on Blue Ocean    thinking to deliver joint business value through Customer Centric    Ecosystem. This milestone partnership drawing upon HCL's strengths in    emerging geographies, strong domain experience, risk taking and service    innovation capabilities has already started delivering results    

Thought Leadership

--  HCL has been the pioneer of Remote Infrastructure Management (RIM) in    India and HCL's leadership in RIM has been recognized by various    independent analyst and media firms.  This year HCL's RIM was acknowledged    by Brown & Wilson Global User Survey 2008 as World's No 1, ahead of leading    global players--  HCL pioneered the concept of co-sourcing in 2005, and moved it to the    next level of an integrated service approach of Full Service Co Sourcing    recently recognized by Ovum as having a clear and differentiated    positioning in the applications outsourcing market.  HCL has a growing    emphasis on larger deals under its asset-light and consulting-light 'full    service co-sourcing' model delivered using unique service-model IPs, a    first of its kind integrated service offshore transitioning model--  HCL's biggest differentiator has been the adoption of the Employee    First philosophy that was lauded by some of the world's most influential    thought leaders as the management mantra for the next generation. Harvard    Business Review and Business Week heralded HCL's Employee First as "the    radical management philosophy that will catch on with the world sooner or    later." HCL was also invited to share thoughts in some of the most    respected global platforms such as WEF, MLab and INSEAD--  HCL has conceptualized a unique collaborative platform called    "Unstructure" where business and technology practitioners can contribute    their thought to address the major issues and trends affecting the business    of technology.  The platform is a combination of an online portal, a    physical event and an annual compendium of thought is gaining participation    by some of the world's most notable thought leaders and business stalwarts    

Transformation @ HCL

--  HCL was invited to participate in the "Future of Management" MLab    Conference, headed by Professor Gary Hamel. The event was attended by some    of the world's most progressive and strategic business thinkers to identify    the fundamental flaws that organizations today face, either in their    structure or management approach, and the possible fixes that could alter    or transform these flaws--  HCL was invited to speak at the INSEAD Leadership Summit in France    that brought together global leaders from business, government, media and    academia to explore the links between business, environment and society.    HCL presented a unique perspective on sustainable corporate growth to a    distinguished global audience--  HCL announced the fourth chapter of its Global Customer Meet 2008 -    "Unstructure," where some of the most noteworthy thought leaders will    mentor conversations on topics that explore the trends in the business of    technology.  Slated for November 17-18, 2008, the event will be held in    Orlando, Florida.--  HCL held the latest in its series of Financial Services Thought    leadership events -- InvesTECH@HCL -- in New York this quarter. The    highlight of the forum was an exclusive panel discussion on 'Risk    Management Strategies in a Downturn Economy' by industry experts and    practitioners. A new operating model from HCL called Run the Enterprise to    help the Financial Services Institutions enhance their ongoing business    performance was also showcased during the event    

Recognitions

--  Forrester counts HCL as the leader in SAP implementation in the    Forrester Wave: Australia/ New Zealand SAP Implementation Providers 08    Report.  HCL is a Leader in ANZ that leverages its offshore capabilities    very well for its SAP clients and has won a number of its projects due to    its capabilities implementing niche solutions--  IDC considers HCL as a formidable opponent in Application Outsourcing    in the Worldwide Application Outsourcing 2007 Service Provider Analysis.    IDC believes that HCL's transformed and modernized applications will be    prime candidates for AO, further growing its business in this area. HCL's    willingness to work with clients using risk-reward or self-funding    transformation contracts has made it an up-and-coming company to watch.--  Voice & Data 100 survey ranks HCL No.1 in Network Management & Network    Security Services and No. 2 in Network Integration Services--  "Strategy + Business" magazine published by Booze Allen Hamilton, in    its story on the topic of Indian companies "reverse investing" in the US,    talks about HCL's drive to engage in more complex work with clients and    firmly positions HCL and its differentiated business strategy--  The CEO Forum magazine (ANZ) appreciates HCL's inspiring effective    organizational innovation and positions Vineet Nayar as a "Change Master"    

Core Software Services Highlights

--  Strategy of focusing on domain expertise and developing service    offerings in select verticals continues to bring rich dividends--  Won a multi-year multi-million SAP contract with a multinational    electronics manufacturing services (EMS) company operating a global    manufacturing network with operations in Asia, Europe and the Americas,    providing a broad range of integrated services and solutions to leading    OEMs (original equipment manufacturers)--  Announced partnership with Gemstone to meet ultra low-latency    requirements of financial firms--  Launched on-demand Software Test Lab open for all ISVs and Application    users/providers--  Launched first of its kind "SaaS enablement framework" called Agora    that will significantly reduce time for ISVs to deliver Saas solutions    based on existing non-SaaS products--  Won Stanley Cup Award for improving Siebel Performance for the    successful go-live of Siebel upgrade and optimization project in record    time--  Insurance practice won LOMA Excellence in Education award for the    fifth consecutive time--  ASSeT and CrossFIT solutions won the Technology Innovation awards at    the FSO Annual summit--  Revenues for Q4 at US$  371.2 mn, up 31.5% YoY; Revenue for Fiscal '08    at US$ 1,372.0 mn, up by 35.9%--  EBITDA (before non cash charge) for Q4 at US$ 87.9 mn, up 42.9% YoY;    EBITDA (before non cash charge) for Fiscal '08 at US$  306.7 mn, up by    34.1%--  EBIT for Q4 at US$ 74.6 mn up 45.4% YoY; EBIT for Fiscal '08 at US$    258.8 mn, up by 33.0%    

Infrastructure Services Highlights

--  HCL Infrastructure Services exceeds Rs. 1000 crore (US$ 283 mn)    revenues--  Announced partnership with VMware to offer Virtualization Lifecycle    Services--  Signed a turnkey Network Outsourcing engagement with Union Bank of    India--  Launched Tivoli Center of Excellence for IT Service Management through    Managed Services partnership with IBM--  Revenues for Q4 at US$ 76.2 mn, up 28.5% YoY; Revenue for Fiscal '08    at US$ 283.3 mn, up by 44.7%--  EBITDA (before non cash charge) for Q4 at US$ 14.3 mn, up 44.4% YoY;    EBITDA (before non cash charge) for Fiscal '08 at US$ 49.9 mn, up by 47.1%--  EBIT for Q4 at US$ 10.7 mn, up 59.7% YoY; EBIT for Fiscal '08 at US$    36.0 mn, up by 57.2%    

BPO Services Highlights

--  Acquired multi-location Financials and Accounting client and moves up    the value-chain with a consulting opportunity in the Telecom vertical--  Ranked as the 4th major BPO player worldwide by the Black Book of    Outsourcing, 2008--  Acquired ISO 20000 certification of IT Service Management System--  Revenues for Q4 at US$ 56.5 mn, up 4.6% YoY ; Revenue for Fiscal '08    at US$ 223.6 mn, up by 21.4%--  EBITDA (before non cash charge) for Q4 at US$ 16.0 mn, up 15.1% YoY ;    EBITDA (before non cash charge) for Fiscal '08 at US$ 59.4 mn, up by 31.1%--  EBIT for Q4 at US$ 13.1 mn, up 27.2% YoY; EBIT for Fiscal '08 at US$    46.6 mn, up by 46.1%    

Complete Audited Financial results for the quarter and year ended June30th, 2008 can be found at:http://www.hcltech.com/investors/Downloads/FR/Q4%20FY08.pdf

About HCL Technologies

HCL Technologies is one of India's leading global IT Services companies,providing software-led IT solutions, remote infrastructure managementservices and BPO. Having made a foray into the global IT landscape in 1999after its IPO, HCL Technologies focuses on Transformational Outsourcing,working with clients in areas that impact and re-define the core of theirbusiness. The company leverages an extensive global offshore infrastructureand its global network of offices in 16 countries to deliver solutionsacross select verticals including Financial Services, Retail & Consumer,Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (MediaPublishing & Entertainment). For the year ended 30th June 2008, HCLTechnologies, along with its subsidiaries had revenues of US$ 1.9 billion(Rs. 7,639crore) and employed 50,741 professionals. For more information,please visitwww.hcltech.com

About HCL Enterprise

HCL Enterprise is a leading Global Technology and IT enterprise thatcomprises two companies listed in India -- HCL Technologies & HCLInfosystems. The 3-decade-old enterprise, founded in 1976, is one ofIndia's original IT garage start-ups. Its range of offerings span ProductEngineering, Technology and Application Services, BPO, InfrastructureServices, IT Hardware, Systems Integration, and distribution of ICTproducts. The HCL team comprises approximately 44,000 professionals ofdiverse nationalities, who operate from 16 countries including 300 pointsof presence in India. HCL has global partnerships with several leadingFortune 1000 firms, including leading IT and Technology firms. For moreinformation, please visit www.hcl.in

Forward-looking Statements

Certain statements in this release are forward-looking statements, whichinvolve a number of risks, uncertainties,assumptions and other factors thatcould cause actual results to differ materially from those in suchforward-looking statements. All statements, other than statements ofhistorical fact are statements that could be deemed forward-lookingstatements, including but not limited to the statements containing thewords 'planned,' 'expects,' 'believes,' 'strategy,' 'opportunity,''anticipates,' 'hopes' or other similar words. The risks and uncertaintiesrelating to these statements include, but are not limited to, risks anduncertainties regarding impact of pending regulatory proceedings,fluctuations in earnings, our ability to manage growth, intense competitionin IT services, Business Process Outsourcing and consulting servicesincluding those factors which may affect our cost advantage, wage increasesin India, customer acceptances of our services, products and feestructures, our ability to attract and retain highly skilled professionals,our ability to integrate acquired assets in a cost effective and timelymanner, time and cost overruns on fixed-price, fixed-time frame contracts,client concentration, restrictions on immigration, our ability to manageour international operations, reduced demand for technology in our keyfocus areas, disruptions in telecommunication networks, our ability tosuccessfully complete and integrate potential acquisitions, the success ofour brand development efforts, liability for damages on our servicecontracts, the success of the companies / entities in which we have madestrategic investments, withdrawal of governmental fiscal incentives,political instability, legal restrictions on raising capital or acquiringcompanies outside India, and unauthorized use of our intellectual property,other risks, uncertainties and general economic conditions affecting ourindustry. There can be no assurance that the forward-looking statementsmade herein will prove to be accurate, and issuance of such forward-lookingstatements should not be regarded as a representation by the Company, orany other person, that the objective and plans of the Company will beachieved. All forward-looking statements made herein are based oninformation presently available to the management of the Company and theCompany does not undertake to update any forward-looking statement that maybe made from time to time by or on behalf of the Company.

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