TCS and Microsoft intend to establish software joint venture with Chinese firms
SICO selects TCS and Microsoft as strategic partners
Beijing — June 30, 2005

Tata Consultancy Services (TCS), a leading global IT services company, and Microsoft were selected as strategic partners by Sino-India Cooperative Office (SICO) of People's Republic of China (PRC). As part of this strategic partnership, Tata Consultancy Services Ltd. (TCS) of India, Microsoft, and Beijing Zhongguancun Software Park Development Co., Ltd., Uniware Co., Ltd. and Tianjin Huayuan Software Park Construction and Development Co., Ltd. announced that the parties intend to establish a software joint venture company to provide IT outsourcing services and solutions to both the global market and domestic market.

The JV, to be located in Beijing's Zhongguancun Software Park, plans to start operation in early 2006. The JV will provide IT outsourcing services and solutions to all major worldwide markets particularly US, Europe, and the Asia Pacific region including China's domestic market. The key objective of this global initiative is to build the new venture as a role-model for the growing Chinese software industry.

The Letter of Intent was signed by representatives of the parties in Beijing - Mr. Li Baoxin, Chairman of Zhongguancun Software Park Development Co., Ltd., Mr. Tim Chen, Microsoft Corporate Vice President, CEO, Greater China Region and Mr. Jayant Pendharkar, Vice President of TCS. Mr. Zhang Xiaoqiang, Vice Chairman of the National Development and Reform Commission of PRC, Zhang Mao, Vice Mayor of Beijing and Yang Dongliang, Vice Mayor of Tianjin attended the ceremony together with Steve Ballmer, chief executive officer, Microsoft Corporation,and V Rajanna, General Manager of TCS China.

The JV will leverage the complimentary strengths of investing parties in technology, software development management and talent training, in particular best processes and practices of TCS as well as its experience of handling large and industrial-scale projects. It will put into play the resources of Chinese partners, which run the national software development parks.

The cooperative project has been initiated and supported by the NDRC, with the objective of supporting China's local software industry through international cooperation. Microsoft's investment also demonstrates its commitment to the MOU signed in June 2002 with the NDRC for supporting the development of China's software and IT industry.

"The success of the cooperation will help accelerate the development of China's including Beijing's software industry and this model is a new way of exploring international cooperation in the software industry," said Zhang Gong, Vice Director General of Beijing Municipal Development and Reform Commission.

Commenting this strategic achievement, CEO and MD of TCS, Mr. S Ramadorai said. "This venture is ample demonstration of the credibility that TCS has established in a market like China within a short span of time." "TCS is committed to this initiative and this venture will be integrated into our pioneering global delivery model," added Mr. S Ramadorai.

"We see our government and industry partners as vital to our success in the world's fastest growing economy", said Mr. Tim Chen, Microsoft Corporate Vice President and CEO of Greater China Region. "We are fully committed to this partnership and look forward to partnering and growing together with the Chinese software industry."

TCS would be the majority share holder and Chinese Party and Microsoft will be strategic investors holding minority shares.

Zhongguancun Software Park, with the support and guidance of NDRC and the Beijing Municipal government has become one of the largest National Software Industry Bases and export bases.

About Tata Consultancy Services in China
TCS has been operating in China since 2002 and delivering services and solutions to its global, regional, and domestic customers from its Global Delivery Centre at Hangzhou with the help of almost 250 engineers. TCS' Global Delivery Centre in Hangzhou is the first and only organization in China certified at Maturity Level 5 for both the Capability Maturity Model Integration (CMMI®) and the People Capability Maturity Model (P-CMM®).

About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services Limited (TCS) is the world leading information technology consulting, services, business process outsourcing and engineering services organization that envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value. TCS achieved this by creating and perfecting a unique method of global deployment and delivery of high quality, high value services and products in IT consulting and business process outsourcing. Known as the "Global Delivery Model," this strategic services delivery concept has reshaped the IT services industry.

More than 75% of TCS customers reward the company's reliability, passion, creativity, and unique ability to handle the broadest range of their IT needs by continually extending and deepening their partnerships with TCS. With over 40,000 of the world's best trained IT consultants located in 33 countries, TCS is uniquely positioned to deliver its flexible world class services seamlessly to any location. TCS reported consolidated revenues of $2.24 billion (U.S.) in the fiscal year 2004-2005. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information: www.tcs.com

About Microsoft Corporation
Founded in 1975, Microsoft (NASDAQ:MSFT) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device. For Microsoft (China) website, pls go to www.microsoft.com/China.
For local press, pls. go to www.microsoft.com/China/press

About SICO
Under the guidance of NDRC, supported by Beijing Municipal Development and Reforms Commission (BMDRC), Beijing Municipal Science and Technology Commission, Tianjin Municipal Development and Reforms Commission (TMDRC), SICO is set-up to represent the three National Software Export Bases (NSEB) of Beijing and Tianjin.