Infotech signs a Memorandum Of Understanding (MOU) with E & M CO.Ltd.Japan To Address Japanese Markets Aggressively

Hyderabad, India - July 3, 2001
Infotech Enterprises Limited Hyderabad (BSE: INFOENT NSE:INFOTECENT) signed a Memorandum of Understanding with E&M Co Ltd, Tokyo to serve as Infotech's exclusive marketing partner in Japan. E & M Japan, a subsidiary of NIHON E & M Co Ltd, has core competencies in the areas of development, design, production and sale of computer software creation and sale of map data and related information data; construction and consultation of Geographic Information Systems.

E & M Co. Ltd will address the Japanese markets with Infotech's Geographic Information Systems (GIS) and Computer Aided Design (CAD) software services. Infotech staff will be based at E&M to train and support their technical and sales teams and provide Project Management support. Infotech and E&M will jointly offer Japanese customers the benefits of low-cost offshore development services combined with onsite project management and technical support.

The MOU is expected to generate over US$ 1 Million business to Infotech from Japan during the current financial year.

The agreement with E&M Co. coincides with the Japanese market opening up to foreign software companies, and IT professionals. In the GIS area, both companies will focus on data conversion and migration services and custom application development based on Infotech's proprietary GeoLOGIC technology. In the CAD area, the focus will be on 3D modeling, Engineering Analysis and drafting & detailing services.

Commenting on the MOU Mr. B.V. R Mohan Reddy, Chairman & Managing Director of Infotech Enterprises said: "This relationship with E & M Co. brings many advantages in having a local partner in Japan. It solves the language barriers and issues relating to Indian sales force operating in a totally different cultural environment. It also comes at an opportune time when Japanese industry is opening up to accept services from foreign companies on account of local cost pressure. We are very pleased with the commitment of Mr. Kazuo Senoo and his team has shown to move this relationship forward for a win-win situation for both the organizations. With Indian project management team moving into Tokyo in the next one week, we hope to see success very soon."

On signing the MOU, Mr. Kazuo Senoo, Chairman of E&M JAPAN said, "Our Company has been eager to establish successful relationship with Infotech Enterprises in the field of GIS and CAD business and now we will do our best to achieve fruitful business results. Japan economy is growing and our relationship will surely contribute towards Indo-Japanese relationship, not only on business but also in understanding mutual culture"

The parent company NIHON E & M which was established in 1970, is into Development, design, production and sales of 2D CAD, 3D CAD, CG, Animation, Data Input Services for Plant Engineering and Planning, Design, Production and Installation of Engineering Model.

Incorporated in late 1991, Infotech Enterprises Limited today ranks among India's leading software services companies and fifth among the top ten software exporters in Hyderabad. Infotech offers end-to-end solutions in the areas of GIS, Engineering and e-Business. Its range of services includes Digitization of drawings/maps, Photogrammetry, Application Software Development, Software Products Development, Consulting and Implementation. Infotech has a 130,000 Sq.ft. state-of-the-art technology center in Info City, Hyderabad. Its digitization center is the largest in India and among the top three in Asia Pacific region. Infotech is an ISO accredited company covering all its lines of business. Infotech has its fully owned subsidiaries in USA, UK and Germany. With over 1900 IT professionals, Infotech has been a profit making company since inception in 1992 and is growing consistently thereon. Infotech is a Public Limited company with its stock being traded actively in all major stock exchanges in India.

Please note: Some statements contained within this report may be of a forward-looking nature and may involve risks and uncertainties. Actual future results and outcomes may differ materially from those discussed. Factors that may cause such differences include, but are not limited to, management of growth, market acceptance of the Company's products and services, risks associated with new product versions, dependence on third party relationships and the activities of competitors.