Press Release August 25, 2006

New Delhi, August 25, 2006: R Systems International Ltd. (NSE: RSystems) one of the leading providers of outsourced product development and customer support services today announced that it completed the acquisition of WebConverse. As previously announced WebConverse is a technical support company with operations in Salt Lake City, US serving the high technology sector with special focus on the growing mobile applications market. WebConverse achieved revenues of US$ 5.1 million in calendar year 2005. The estimated value of the transaction will be a maximum of $10.7 million inclusive of earn out payments.

"We are pleased to announce the completion of this acquisition and we are very delighted to welcome the employees and clients of WebConverse into the R Systems' family," said Rekhi Singh, CEO of R Systems. He added, "The combination strengthens our capability in providing multi-shore technical support services and provides a solid foundation to provide end-to-end solutions and services to the high technology sector."

R Systems International Ltd. founded in 1993, is one of the leading providers of outsourced product development and customer support services. We help companies accelerate the speed to market for their products and services with a high degree of time and cost predictability by using our proprietary pSuite execution framework. Clients can choose services specific to their needs from R Systems iPLM suite of services. We help companies build scalable, configurable and secure products and applications; and help our clients support their customers for products and services using our global delivery model. R Systems rapidly growing customer list includes a variety Fortune 1000, government and mid-sized organizations across a wide range of industry verticals including Banking and Finance, High Technology and Independent Software Vendors, Government, HealthCare, Manufacturing and Logistic Industries. R Systems maintains five centers for Software Excellence, and using our global delivery model we serve customers in the US, Europe, South America, the Far East, the Middle East and Africa

WebConverse Inc., headquartered in San Mateo, CA, was founded in the year 2000 and specializes in delivering outsourced Technical Support for mobile applications, enterprise software, hardware, and hosted applications. WebConverse's turnkey solutions include inbound and outbound telephone support, email response and real-time Web-chat. WebConverse delivers services out of facilities in San Mateo, Salt Lake City, and India. More information on WebConverse is available at http://www.webconverse.com.

This press release contains forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results 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 the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT and consulting 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 and consulting services, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, 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. We may, from time to time, make additional written and oral forward-looking statements, and we do not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.