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Since the very beginning we have focused solely on one

objective - how to help our customers excel in their

business. Thus, the dynamism of the market place, the

ever-increasing expectations of your customers, and your

future business challenges, keep us constantly on the

move. We are constantly enhancing our product solutions,

keeping pace with newer technology, building capacity

and new skills, and much more. In the process we are

always evolving to be an able partner to you our customer.

Today, the global explosion of the Internet, e-commerce

and the rapid emergence of the new Internet economy

are creating new opportunities as well as threats for

financial institutions worldwide. Since inception, our

Corporate Strategy, R&D, Product Development efforts,

and planning endeavors have always been focused on

understanding the challenges that our customers face.

This helps us in creating solutions that arm you with a

competitive advantage and enable you to succeed in your

business. Our mission is to enable financial institutions

excel in an e-powered world, through effective use of

information technology.

Ever since we launched our first product almost a

decade ago, we instituted a process to manage change.

One was by incorporating functional enhancements

required in the software as a result of specific

requirements of financial institutions. The other was in

making peculiar enhancements or modifications to meet

country specific requirements. And the third was

technological upgrades to make operations more efficient.

FLEXCUBE - the Next Generation Universal Banking

Solution - launched in November 1997, has achieved

unprecedented success to become the #2 selling package

in the world within two years of its launch, according to

the London-based International Banking Systems

publication. In addition, to serve your needs in the areas

of e-commerce, Customer Relationship Management,

Knowledge Management and other customized offerings,

we have created a powerful Services and Consulting

capability with over 600 professionals to build specific

strategies and solutions based on your individual business

needs.

Today, we are proud to serve more than 250 financial

institutions worldwide with these solutions.

i-flex solutions is well poised to take you through

these fast-changing times and help you emerge a winner

in your segment by helping you compete more effectively

in your market and in turn offering your customers

innovative and value added products.

R Ravisankar

CEO, International Operations and Technology

Focused on Customers' Needs

i-flex recorded a turnover of Rs. 2063 million (USD 45million) in 1999-00. And since 1992-93, it has recordeda Compounded Annual Growth Rate (CAGR) of over 70%in Revenues and more than 90% in Gross Profits.

The company is among the top 20 software exportersin India, as ranked by the National Association of Softwareand Service Companies (NASSCOM) and Dataquest (aleading Indian IT publication) and has consistently wonawards from the Department of Electronics, Governmentof India for outstanding export performances.

As part of its growth strategy, the company is rapidlyexpanding into newer markets with the assistance ofCorporate Business Partners (CBPs), and the formationof joint ventures and business alliances. i-flex has morethan 30 CBPs addressing the needs of customers acrossfive continents.

Products

At i-flex, our products are a good example of our innovativesolutions for financial institutions around the world.

Take i-flex’s flagship brand FLEXCUBE for instance.Its flexibility, scalability and rich functionality has madeit an outstanding success in the shortest possible time.

The first product, however, to emerge from the i-flexstable was MicroBanker. A compact banking product thatmade waves in the emerging markets of the world.MicroBanker runs successfully in more than 110 financialinstitutions across the world and is only the sixth bankingproduct in the world to cross the century mark in termsof sales.

The next product to make a major impact wasFLEXCUBE – a universal banking solution.

FLEXCUBEFLEXCUBE occupies center-stage in the company’s

product portfolio and today (November 2000), it is thechoice of 47 financial institutions across 27 countries. Allthis within three years of its launch.

FLEXCUBE was also the second largest selling productin the world for 1999 according to a rating done by theLondon-based International Banking Systems. This is anunprecedented success for any product in its categoryanywhere in the world.

The FLEXCUBE suite has been acknowledged as acomprehensive Universal Banking Solution. An integratedbanking system, it caters to multiple and diverse deliverychannels, ATMs, PDAs, debit cards and banking over theNet.

Today, the FLEXCUBE Universal Banking Solution ismade even more powerful with its leading edge capabilitiesin business intelligence through FLEXCUBE InformationCenter and the Internet-enabling FLEXCUBE @ - i-flex’sinternet banking solution. Currently, FLEXCUBE is emergingas a leading solution for forward-looking financialinstitutions in this age of the Internet.

i-flex Development Center, Mumbai.

1995 - Landmarks• MicroBanker, the company’s flagship product is rated No.1 in the world by

International Banking Systems, UK.• The company attains SEI CMM Level 4 – the first financial software company in

the world to achieve this distinction.• The company holds its first international meet for customers of MicroBanker.• FLEXCUBE conceptualized as the next generation banking solution.

• The company establishes its Center of Excellence for Data Warehousing.1996 - Landmarks

The Company

i-flex Services

i-flex focuses on meeting the business objectives of itscustomers while ensuring effective and workable solutions.The range of services provided include offshore and onsitesoftware development, and software re-engineering. Further,based on the rich experience gained over the years, Centersof Excellence have been established around strategictechnologies to create value and ensure effective deploymentof solutions.

Center of Excellence for Business Intelligencei-flex possesses extensive experience in concept tocompletion of Business Intelligence solutions. i-flex hascapitalized on this experience by further expanding itsCenter for Business Intelligence to incorporate a synthesisof architecture, processes and business applications. Thishelps extend traditional Business Intelligence towardsknowledge management.

The Center has completed more than 100 projects forover 50 countries since its inception. With more than 200professionals and 450 person-years of cumulativeexperience, the Center provides round-the-clock supportand development assistance as well as specialized consultingon Business Intelligence.

Also worthy of note is that FLEXCUBE Information Center– a productized Business Intelligence offering - isimplemented using a time-tested methodology calledHarmony which ensures a 100% successful implementationof a data warehouse.

i-flex today offers Business Intelligence consulting andimplementation services to countries spread across USA,Latin America, Europe, Middle East and Asia Pacific.

Java Center for Financial Servicesi-flex set up the Java Center for Financial Services to

develop this emerging technology. Today, this Center isdesignated as an Authorized Java Center by SunMicrosystems. An alliance that provides i-flex with before-the-market knowledge on emerging standards and techniques.And ensures that i-flex is always at the forefront; in thesolutions it offers its clients.

Globally, customers were looking for a single, seamlesslyintegrated product with comprehensive functionality.And FLEXCUBE met this challenge with a commontechnology platform and enhanced product capability.These radical steps, resulted in immediate market successwith both Retail and Corporate streams growingdramatically in revenues.

Today, the FLEXCUBE Universal Banking Solution ismade even more powerful with its leading edge capabilitiesin business intelligence through FLEXCUBE InformationCenter and the Internet enabled FLEXCUBE @. It is nowpoised to take over the global financial services market.Currently, FLEXCUBE is looking towards meeting therequirements of top-tier financial institutions in bothemerging and advanced markets.

1997 - Landmarks• The Company organizes its second International User Meet.• FLEXCUBE launched. HDFC Bank signs up as its first customer.

• Touches the 100 customer mark with MicroBanker. And becomes only thesixth international banking product to achieve this distinction.

• FLEXCUBE ranked among the top 10 corporate banking solutions, globally.

1998 - Landmarks

The Center of Excellence works through a frameworkfor Java applications that helps meet the customersbusiness requirements by providing a set of ready-to-usecomponents and an architecture that is designed toaccommodate growth. With a specialized team of businessand architecture experts who guide customers throughall stages, right from conceptualization to going live. Thebusiness potential of this Center is immense given thespectrum of application systems, hardware platforms anddelivery channels that deploy Java technology.

Customer Relationship Management Center ofExcellenceAcross the world, the boundaries between traditionalbanking and new financial services are blurring. There’sa compelling need to provide value-added services tocustomers and take advantage of the e-commerce explosion.For financial institutions the road to success lies in quickresponse, flexible operations and a shorter time-to-markettheir new product offerings.

i-flex solutions’ Customer Relationship ManagementCenter of Excellence focuses on helping financialinstitutions retain customer loyalty and improve theirreturn from technological investments.

i-flex’s Customer Relationship Management Center ofExcellence leverages on its deep understanding of thebanking and financial services industry. This Center ofExcellence is one of the very few solutions providers inthe world that is vertically focused on this industry. It hasvast experience in implementing Business Intelligenceand analytical systems. Its clients are able to createlasting customer loyalty, which in turn results in increasedprofits, better customer retention and competitiveadvantage.

An entire range of CRM services is offered, startingfrom CRM strategy to package implementation andproduction support. Since inception of the CustomerRelationship Management Center of Excellence in 1998,it has built a team of high-caliber professionals withexpertise in the vertical segment of the banking and financeindustry. It has successfully executed assignments involvingre-engineering of customer relationship practices andintegration of front office solutions with back office solutionsand Business Intelligence applications.

Consultants of the Customer Relationship ManagementCenter of Excellence have extensive international exposureand have implemented solutions in various regions acrossthe US, Europe, Latin America and Asia Pacific. All CRMsolutions maintain the highest standard of internationalquality.

i-flex's New Business Initiatives

i-flex has leveraged its experience gathered in providingsolutions to the banking and financial services industryto help its customers successfully compete in the newInternet economy. Its initiatives are two-fold - i-flex hasdeveloped in-house expertise for financial institutionswishing to leverage the power of the internet; i-flex hasalso incubated projects along with leading institutions inthe area of e-commerce.

i-flex e-commerce support includes evaluating, buildingand aiding e-commerce initiatives. With the requiredinputs, an organization could set up payment gateways,security infrastructure, on-line shopping malls, portals,and vortals. With e-commerce being more than just a buzzword, it is becoming increasingly clear that the expandingmarket will be shaped and led by reliable e-commercesolution experts and partners who use their experienceand success to sustain their leadership in adding valueto their customers.

Among the projects incubated so far are DotExInternational Limited, a vertical portal formed incollaboration with the IT Division of the National StockExchange of India – a leading stock exchange - to offer acomprehensive range of products and services to bothmarket participants and investors.

Another project, a joint venture between Citibank, TheTimes Group and i-flex is a vertical B2C and B2B financialinfomediary portal.

i-flex has also formed a new ASP company, a jointventure of i-flex solutions and HDFC Bank (a leadingprivate bank), to provide FLEXCUBE “on tap” anywherein the world. The target segments for this offering includebanks in the corporate, retail and investment business,co-operative and foreign banks. The ASP model will notonly benefit the target segment but will also dramaticallyreduce costs for banks and financial institutions.

• FLEXCUBE is the second largest selling wholesale bankingsystem in the world (rated by International Banking Systems,UK).

• Launch of FLEXCUBE @, the Internet banking platform thatwill enable financial institutions to quickly adapt to the newInternet economy.

• Signs up first customer in the US for FLEXCUBE InformationCenter.

• Institutes the Java Center for Financial Services – the secondsuch Center in Asia – along with Sun Microsystems.

• 3rd International User Meet with over 100 delegates from 29countries.

• Rated at SEI CMM Level 5.• CITIL Consulting launched as a separate business group.

• CITIL renames itself i-flex solutions ltd.• Enables customers on mobile banking with SMS and WAP

support.• i-flex establishes a separate business unit to address the ASP

market.

1999 - Landmarks

2000 - Landmarks

Financials at a Glance

Operating Revenue Revenue-Region Wise

1999-2000Key Indicators

51%

Services Revenue

49 %

Products Revenue

5% 29%

14%

23%29%

Track Record – 5 years1995-96 1996-97 1997-98 1998-99 1999-00

Total Income 363.99 545.26 825.86 1,444.31 2,062.69

Total Expenses 270.88 343.95 513.19 933.20 1,341.69

PBT 93.11 201.31 312.67 511.11 721.00

Tax 9.00 7.80 4.75 6.77 28.27

PAT 84.11 193.51 307.92 504.33 692.73

EPS 10.11 23.26 37.01 60.62 83.27

Book Value 25.42 47.39 96.72 155.99 254.92

Notes :

1) The company issued bonus shares in the ratio of 1:1 in 1999-2000 for the second year in succession.

2) All EPS values and Book Values are computed based on the current equity capital base of the company.

US ASPAC (Including India)Europe

Middle East and AfricaLatin America and the Carribean

(All figures in Rs. millions. EPS & Book Value in Rs.)

Customer base Country base

Customer & Country Base

0

30

60

90

120

150

180

210

240

270

92

35

125

37

163

51

206

55

268

70

95-96 96-97 97-98 98-99 99-(November 2000)

Note: The growth shown is cumulative.

2062.69

1444.31

825.86

545.26

363.99

0

500

1000

1500

2000

2500

Revenue Growth

1995-96 1996-97 1997-98 1998-99 1999-00

Rev

enue

in R

s. M

illio

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New Jersey Tel: +1-201-320 4498 Fax: +1-973-644 3247

Miami Tel: +1-305-599 5135 Fax: +1-305-599 5136

London Tel: +44-207-556 7127 Fax: +44-207-556 7001

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