R Systems Receives SEBI Clearance for IPO

New Delhi, March 16, 2006: R Systems International Ltd. has received the go-ahead from the Securities and Exchange Board of India (SEBI) for the Initial Public Offering of 4,408,355 equity shares of Rs.10 each comprising fresh issue of 2,825,000 equity shares of Rs.10 each by R Systems International Ltd. and an offer for sale of 1,583,355 equity shares of Rs. 10 each by the selling shareholders. The Issue will be 100 percent book built. The Equity Shares will be listed on the BSE and NSE.

The issue would constitute 32.57% of the fully diluted post-issue paid-up capital of the company.

The objective of the Issue is to expand and upgrade existing facilities at Noida, Chennai and Pune.

IL&FS Investsmart Limited is the sole book running lead manager to the Issue and Intime Spectrum Registry Ltd. is the Registrar to the Issue.

About R Systems International Ltd

R Systems International Ltd, headquartered at Noida India, is one of the leading providers of Outsourced and Offshore Product Development Services. These services are offered as Integrated Product Lifecycle Management (iPLM) services supported by its proprietary pSuite Framework. R Systems focuses on the special needs of organisations that build scalable, configurable, secure software products for both businesses and consumers. The company's key domains include industry verticals in banking & finance; high technology and Internet services; manufacturing & logistics and public Sector. The company also develops products that help leading media and telecommunication companies to deliver futuristic Triple IP Services Customers include Fortune 1000 companies as well as rapidly growing mid-market companies whose products and services serve a whole range of business customers. R Systems has five delivery centers in three countries - India (Noida, Chennai and Pune), USA and Singapore from where services are seamlessly delivered using a mix of on-site and offshore based services. The Company is ISO 9001- 2000 and CMMI Level 5 certified and dovetails 6 sigma practices into its processes and procedures.

GE Capital Mauritius Equity Investment and Intel Pacific Inc. are the two strategic investors. The company had an annual consolidated turnover for FY 04 of Rs.1,323 million and Rs.1,574 million for FY 05.