2. © Infosys Technologies Limited 2005 - 06 Financial update V. Balakrishnan SVP - Finance and Company Secretary

3. November 11, 2005© Infosys Technologies Limited 2005 - 06 Safe Harbor Certain statements in this Analyst Meet concerning our future growth prospects are forward-looking statements, which involve 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 fluctuations in earnings, our ability to manage growth, intense competition in IT 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 in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, 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. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2005 and our reports on Form 6-K. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.

4. November 11, 2005© Infosys Technologies Limited 2005 - 06 Q2 06 – A good quarter…. Q2 FY 2006Q1 FY 2006 Sequential growth $ m% % Revenue524100.0476100.010.1 Gross Profit22743.320242.412.4 Operating income14627.913327.99.8 Net income13826.312225.613.1 Basic Earnings per ADS ($) 0.510.4513.3

5. November 11, 2005© Infosys Technologies Limited 2005 - 06....leading to an upward revision in Outlook OUTLOOK FOR FY 06 April 2005September 2005 Revenues ($ m) 2,038-2,0702,140 Y-o-y growth (%) 28%-30%34% EPADS ($) 1.92-1.952.04-2.05 Y-o-y growth (%) 22%-24%30%-31% Employee additions (gross) 12,60020,200 Capex ($ m) 220-250260-290

6. November 11, 2005© Infosys Technologies Limited 2005 - 06 Application Development and Maintenance Management Consulting Business Process Management IT Outsourcing Systems Integration Enterprise Solutions Technology Consulting Technology-enabled BPR Software Re-engineering PeopleOrganization Infrastructure ProcessQuality 2005 2001 1981 1996 Client Location / PDC* Offshore Development Centers Analysis and Planning High Level Design User Interface Design Project Co-ordination Onsite Testing Implementation Project Management Detailed Design Coding Testing Documentation Bug Fixes Warranty Support Maintenance Rapid Reaction Support Post Implementation Support 30-35% Effort70-65% Effort Global Delivery Model Discovery ProjectProject * Proximity Development Center We have a competitive business model… Applying GDM+ Across the Services Spectrum Highly-evolved Global Delivery Model (GDM) Infosys Global Delivery Model

7. November 11, 2005© Infosys Technologies Limited 2005 - 06 … supported by a highly evolved cost structure FY 03 FY 04 FY 05Q1 06Q2 06 $ m% % % % % Revenues754100.0%1,063100.0%1,592100.0%476100.0%524100.0% Cost of revenues41755.3%60356.7%90456.8%27457.6%29756.7% Gross Profit33744.7%46043.3%68843.2%20242.4%22743.3% S&M expenses567.4%777.2%1036.5%326.7%356.7% G&A expenses587.7%827.7%1278.0%377.8%468.8% Amortization40.5%80.8%20.1%---- Operating expenses11815.6%16715.7%23214.6%6914.5%8115.5% Operating income21929.0%29327.6%45628.6%13327.9%14627.9% Other income, net182.4%282.6%352.2%71.5%91.7% Income before taxes23731.4%32130.2%49130.8%14029.4%15529.6% Provision for taxes and MI425.6%514.8%724.5%183.8%173.3% Net income19525.9%27025.4%41926.3%12225.6%13826.3%

8. November 11, 2005© Infosys Technologies Limited 2005 - 06 We are balancing growth and margins Challenges on margin front Billing rates Volume growth Wages Currency movements Investments Income taxes ESOP charge Levers available to protect margins Onsite-Offshore mix Utilization Scale benefits on SG&A

9. November 11, 2005© Infosys Technologies Limited 2005 - 06 Billing rates are stable* * Consolidated IT services Change in billing rates using FY 99 as the base

10. November 11, 2005© Infosys Technologies Limited 2005 - 06 New services are our engines of growth FY 03FY 04FY 05Q1 06Q2 06 Package Implementation11.0%14.5%15.2% 15.8% Consulting4.3%3.7%3.6%4.2%3.8% Testing3.4%5.3%5.8%6.5%6.2% Engineering services2.6%2.2%2.0%1.8%1.9% Business Process Management0.5%1.6%2.7%3.8%3.9% Other Services7.8%8.1%8.4%8.9%10.1% New services as % of revenues29.6%35.4%37.7%40.4%41.7%

11. November 11, 2005© Infosys Technologies Limited 2005 - 06 Volume growth continues to be strong* Billed manmonthsFY 03FY04FY05Q106Q206 Onsite36,76951,23672,43120,99723,311 Offshore66,309102,852157,81545,90850,465 Total103,078154,089230,24666,90573,776 Y-o-y growth (%) onsite52.1%39.3%41.4%30.2%35.0% Y-o-y growth (%) offshore32.8%55.1%53.4%40.9%34.3% Y-o-y growth (%) blended38.8%49.5%49.4%37.3%34.5% Offshore outsourcing is the only visible trend in the global IT services market today * Consolidated IT services

12. November 11, 2005© Infosys Technologies Limited 2005 - 06 Wage pressure is manageable Variable compensation structure – 30% of the total salary across the company is variable Low attrition (10.0% in Q2 06, LTM basis*) – Lowest at high- performers level (6.2%) and highest at low-performers level (48.1%) FY 03FY 04FY 05Q1 06Q2 06 Salary costs as a % of revenue47.1%50.6%49.7%50.1%49.7% Applications614,653907,9221,348,832287,638482,186 Offers6,24613,50014,5193,5556,126 Gross additions5,50910,07711,5973,1266,868 Out of which freshers hired4,1907,9177,9561,9365,763 * Standalone

13. November 11, 2005© Infosys Technologies Limited 2005 - 06 Gains or losses arising on revaluing foreign currency denominated assets and liabilities at each period end Components of Forex variation under other income Effect of foreign currency denominated monetary assets and liabilities Transaction differences Translation differences Effect of hedging Gains and losses on forward contracts Effect of marking to market Pro-actively manage the exchange impact Gains or losses on forward contracts maturing/cancelled during the period - difference between forward rate and spot rate on date of maturity/cancellation Difference between forward rate/carrying value of FC rate and period end rate Gains or losses arising on difference in foreign exchange rates between date of settlement of transaction and originating transaction rate/ carrying value

14. November 11, 2005© Infosys Technologies Limited 2005 - 06 Pro-actively manage the exchange impact FY 03FY 04FY 05Q1 06Q2 06 Forward cover ($ m)88149353261305 Gain/(loss) on forex ($ m)47-2 - Billing details (%) USD89.084.979.478.279.0 Euros4.35.14.94.64.1 GBP3.74.26.57.18.1 Other currencies3.05.89.210.18.8 Every 1% change in $-Re rate impacts operating margins by 50 basis points

15. November 11, 2005© Infosys Technologies Limited 2005 - 06 Pro-actively manage the exchange impact FY 03FY 04FY 05Q1 06Q2 06 $-Re average rate48.3545.7844.8743.5443.78 $-Re period end rate47.5343.4043.6243.5143.94 % change on average rate1.3(5.3)(2.0)(3.9)(5.3) % change on period end rate(2.6)(8.7)0.5(5.4)(4.3) Euro-Re average rate48.4653.9056.7654.4053.29 Euro-Re period end rate51.4053.7756.5252.6952.98 % change on average rate15.111.25.3(0.9)(5.3) % change on period end rate20.64.65.1(5.9)(6.8) GBP-Re average rate75.0778.0283.1380.1777.79 GBP-Re period end rate74.8480.5282.1877.9877.76 % change on average rate9.63.96.6(2.4)(7.1) % change on period end rate7.6 2.1(7.2)(7.0)

16. November 11, 2005© Infosys Technologies Limited 2005 - 06 We continue to invest for the future FY 05 ($ m)Q1 06 ($ m)Q2 06 ($ m) China1.870.610.67 Consulting7.332.121.24 Finacle3.031.390.78 IBU business plans6.26-- Total18.494.122.69 % of revenue1.20.90.5

17. November 11, 2005© Infosys Technologies Limited 2005 - 06 Income taxes STPI tax holiday expires at the end of fiscal 2009 SEZ scheme – 15 years tax holiday (First 5 years 100%, next 5 years 50% and the balance to the extent of reinvestment in the business) Fringe Benefit Tax – Impact is 0.18% in Q1 and 0.14% in Q2. It is not material

18. November 11, 2005© Infosys Technologies Limited 2005 - 06 ESOP charge is not material Stopped further grants under 1998 and 1999 stock option plans. 1994 plan has lapsed SFAS 123 R is applicable to us from fiscal 2007 Progeon continues to issue stock options to its employees The impact due to SFAS 123 R is not material ($ 4 m in FY 07 and $ 1 m in FY 08)

19. November 11, 2005© Infosys Technologies Limited 2005 - 06 We leverage the global delivery model effectively* FY 03FY 04FY 05Q1 06Q2 06 Revenue mix Onsite57.4%54.7%52.3%52.0%52.4% Offshore42.6%45.3%47.7%48.0%47.6% Total100.0% Effort mix Onsite35.7%33.3%31.5%31.4%31.6% Offshore64.3%66.7%68.5%68.6%68.4% Total100.0% * Consolidated IT services

20. November 11, 2005© Infosys Technologies Limited 2005 - 06 Utilization FY 03FY 04FY 05Q1 06Q2 06 Including trainees77.6%73.0%72.3%74.1%72.9% Excluding trainees82.2% 78.9%77.5%79.1%

21. November 11, 2005© Infosys Technologies Limited 2005 - 06 Scale benefits on SG&A FY 03FY 04FY 05Q1 06Q2 06 Revenues - $ m7541,0631,592476524 S&M exp - $ m56771033235 % of revenue7.4%7.2%6.5%6.7% No. of people in S&M280308348379406 Offshore pre-sales181198211275295 G&A exp - $ m58821273746 % of revenue7.7% 8.0%7.8%8.8% No. of people in G&A1,0691,8701,9852,2812,349 Total SG&A exp - $ m1141592306981 % of revenue15.1%15.0%14.4%14.5%15.5% % of S,G&A employees to total9.8%9.3%6.9%7.4%6.6%

22. November 11, 2005© Infosys Technologies Limited 2005 - 06 The net result FY 03 FY 04 FY 05Q1 06Q2 06 $ m% % % % % Revenues 754100.0%1,063100.0%1,592100.0%476100.0%524100.0% Gross Profit 33744.7%46043.3%68843.2%20242.4%22743.3% Operating income 21929.0%29327.6%45628.6%13327.9%14627.9% Net income 19525.9%27025.4%41926.3%12225.6%13826.3%

23. November 11, 2005© Infosys Technologies Limited 2005 - 06 Balance Sheet is strong and liquid Mar 31, 2003 ($ m) Mar 31, 2004 ($ m) Mar 31, 2005 ($ m) Sep 30, 2005 ($ m) Cash and cash equivalents354663688865 Trade accounts receivable109150303304 Property, plant and equipment157228352435 Other assets8491111130 Total Assets7041,1321,4541,734 Current Liabilities63152175189 Non-current liabilities15272617 Stockholders Equity6269531,2531,528 Total Liabilities and Stockholder’s Equity 7041,1321,4541,734 We continue to be a debt-free company

24. November 11, 2005© Infosys Technologies Limited 2005 - 06 We have clear policies on returns and dividends # Includes Rs. 236 cr due from a large customer, which was collected in the first week of April 2005 * Cash and cash equivalents include investments in liquid mutual funds ** Excluding one-time special dividend of $ 164 m in Fiscal 2004 Target200320042005 ROCE (%)46.9%48.1%51.4% Times cost of Capital2.02.83.43.8 ROIC (%)79.9%137.5%123.6% Times cost of Capital3.04.79.89.1 Days sales outstanding60524867 # Cash & equivalents / total assets *40.0%57.3%85.1% 54.4% Cash & equivalents / revenue *25.0%45.2%58.2%41.6% Dividend % (% to net profits)**Upto 20%19.9517.79 18.48

25. November 11, 2005© Infosys Technologies Limited 2005 - 06 and finally, we keep our business model simple Debt free No off-balance sheet items No Special Purpose Vehicles (SPV’s) Provide for all known losses What you see is what you get

26. November 11, 2005© Infosys Technologies Limited 2005 - 06 In summary Financially strong and profitable Growing faster than industry A robust revenue model and a competitive cost structure Ability to scale up to meet demands Willing to make investments for future growth and differentiation

27. © Infosys Technologies Limited 2005 - 06 Thank you www.infosys.com