Acquisition adds Government vertical & takes it closer to becoming a mid-sized player

Hyderabad, Wednesday, June 18, 2008: Cambridge Technology Enterprises, a global IT services provider a leading provider of SOA based solutions and Enterprise Transformation applications to mid size enterprises and mid size business units of Global 2000 enterprises, today announced completion of all formalities related to the acquisition of CellExchange,Inc, a Cambridge based system integrator company, for a total deal size of $15 million in guaranteed cash and performance based earn-outs.

This is the fourth and the largest acquisition in the year FY08, starting with ComCreation, Inc. in first quarter of FY08, Reilly & Associates in second quarter of FY08 and Q-Soft Systems & Solutions in third quarter of FY08. The merits of the CellExchange transaction are effective 1st of January 2008. CellExchange realized INR 80 Crores revenue in year 2007. The acquisition is expected to bring in additional INR 90 Crores revenue in FY09. CTE has already clocked INR 45.68 Crores during first nine months of FY08 (as on 31-Dec-2007) against INR 23.40 Crores revenue for the entire FY07. The acquisition will boost CTE’s revenue run rate to approximately $40 million (INR 160 Crores) and also will increase its head count globally to over 600.

Incorporated in 2000 in Cambridge, MA, CellExchange provides system integration IT solutions for US Federal and US Department of Defense (DoD) customers. CellExchange focuses on transformational efforts in Human Capital Management, Supply Chain Management, and Information Sharing. Having served the US Navy, the US Air Force, the US Army, and the Joint Chiefs of Staff, as its distinguished customers, the company uses standards-based technologies and employs a disciplined collaborative process to enable rapid incremental delivery. CellExchange is an active member of the SOA Consortium, Homeland Security and Defense Business Council.

In addition to the revenue run-rate and head count enhancement, this acquisition will bring in many strategic advantages to CTE’s portfolio by enhancing its offerings in the government sector. The acquisition will help CTE further strengthen its expertise in SOA frameworks and Rapid Application Development (RAD).

Bhaskar Panigrahi, CEO, Cambridge Technology Enterprises said, “I look forward to this relationship bringing tremendous synergy and benefits to both the organizations. CellExchange’s solutions and competency complement our existing service offerings and will enable us to serve our customers on a more comprehensive level. This would also allow better resource utilization and improving profitability of the combined company. We have been extremely successful in realizing synergies with our previous acquisitions and reaping the benefits now.”

“CellExchange is already a leading provider of system integration IT solutions for US Federal and US Department of Defense (DoD) customers. With CTE and CellExchange having the same execution model, we will leverage our expertise to win larger contracts in the commercial sector. At the same time, our government customers can leverage our expertise and solutions in commercial customer, enabling to bring systematic innovation to public sector enterprises.” said Krishna Nangegadda, President, CellExchange.

About CellExchange

CellExchange headquartered near MIT’s campus in Cambridge, MA, is an SBA small business systems integrator serving the Federal Government. The company applies thought-leadership for business transformation and IT change through prototyping, workshops, business cases, and commercial best practices. It has a deep domain focus on human capital management, information sharing, and supply chain management. CellExchange is technology agnostic, with distinctive competencies in J2EE service-oriented architecture (SOA) mobile and open source.

For more information please visit www.cellexchange.com

About Cambridge Technology Enterprises

Cambridge Technology Enterprises (CTE) is a global services provider dedicated to serving the midsize market of enterprises and the midsize units of Global 2000 enterprises across the spectrum of business industries. Recognized as a thought leader and innovator of comprehensive Service Oriented Architecture (SOA)-based enterprise transformation and integration solutions and services, CTE provides solutions for all business challenges. A CMMI Level 5 business innovator, CTE offers the same level of expertise to IT as it does to product development, business process outsourcing, and innovation consulting. CTE leverages its dedicated pool of talented professionals and its deep partner network and acts as a general contractor to help midsize enterprises meet today’s increased challenges and makes them future ready. CTE is a one-stop-shop for all global service needs. With offices throughout the US and the world, Cambridge Technology Enterprises focuses on local collaboration and global execution.

For more information, please visit www.ctepl.com, or e-mail us at info@ctepl.com.