R Systems International Limited acquires ECnet - A Leading e-Supply Chain Solutions Provider

New Delhi, 28 January 2004 - R Systems International Limited, a global provider of professional IT services, today announced that it has officially acquired ECnet Limited, a leading global provider of e-supply chain solutions and management services based in Asia. Since the completion of the acquisition in early January 2004, ECnet has become a subsidiary of R Systems, under its existing trademark name "ECnet".

Headquartered in India, R Systems provides core global outsourcing services in areas like Information Technology, Consumer Finance and Back Office Support to various industry verticals. It has been named by Inc. 500 as America's Fastest-Growing Private Companies for three consecutive years and has also been assessed Software Engineering Institute Capability Maturity Model (CMM) Level 5, which represents the top two per cent of software development organisations globally. Only 53 other India-based companies are assessed at CMM Level 5 and less than 100 companies worldwide hold this level of maturity.

Through this acquisition, it will create greater synergy for both companies to leverage on each other's strengths in the areas of client resources, trade channels, business markets and technology so as to successfully develop and implement eSCM initiatives both in Singapore and internationally. The acquisition will allow ECnet to tap on R Systems' expertise on enterprise solutions, global reach and its talent pool of 750 employees. Reciprocally, R Systems can readily develop a SCM practice and effectively penetrate Asia's manufacturing industry through ECnet's established eSCM solutions and world-class clientele.

"This latest acquisition of ECnet supports R Systems' strategy of consolidating our presence in South East Asia and extending our outsourcing services in this region. We feel that ECnet's business strategy is a good fit with what we're looking for. We were looking to acquire a well-established company that provides innovative and collaborative solutions with the ability to meet the diverse needs and changes of today's challenging business environment... we found that in ECnet. Acquiring ECnet is an excellent platform for R Systems to extend its foray into the other parts of Asia, where ECnet has a strong presence", said Mr. Rekhi Singh, President and CEO, R Systems, Inc.

"We're truly excited and honoured to be working with R Systems, a company that has grown rapidly over the past few years, with an impressive track record. Since 1995, ECnet, a pioneer in the supply chain management arena, has built a strong presence across Asia. With the financial and technical backing from R Systems, we look forward to tapping the synergies between R Systems and ECnet, to enable a greater level of excellence in the solution offerings to our customers. At the appropriate time, ECnet will extend its presence into US and India through R Systems' strong client reach", said Mr. Peter See, President and CEO, ECnet Limited.

"We've very good rapport with ECnet's management team and we're very excited about the company's plans. We're confident that with R Systems' support and ECnet's capable and professional team, ECnet will be able to further develop the suite of ECnet products and solutions to continue to serve its customers without compromise", said Mr. Singh.

Mr. See added, "R Systems' acquisition of ECnet will serve to strengthen our capability and leading position in the eSCM industry. We're very committed to delivering innovation and value to our customers, through consistent, reliable and industry leading edge solutions".

R Systems' acquisition of ECnet has been completed in January 2004. Mr. Peter See remains as ECnet's President and Chief Executive Officer and will also be heading R Systems' thrust into the Asia Pacific region. ECnet will continue to be headquartered in Singapore, with presence in US, China, Japan, Malaysia and Thailand.

About ECnet

ECnet is a leading global provider of collaborative supply chain solutions and management services. ECnet provides proven collaborative supply chain solutions and management expertise, a best-of-breed technology platform and a suite of services for organisations that want to rapidly integrate and streamline business processes, while optimising the exchange of information with multiple business partners.

Founded in Singapore in 1995, ECnet's domain expertise in collaborative supply chain solutions spans nine countries and territories in the Asian market. Customers include Armstrong, Hitachi Electronics, Jurong Hi-Tech, JVC, Pioneer, Mitsubishi, Sharp, TEAC, Toshiba and Wincor Nixdorf. ECnet is privately held and headquartered in Singapore, with presence in US, China, Japan, Malaysia and Thailand. ECnet is also a member of Asia Supply Chain Alliance. More information about ECnet can be found at www.ecnet.com.