STG to Extend Infosys' Service Model

Bangalore, August 7, 2001: Infosys today announced that it has appointed Delhi based Software Technology Group (STG) International Limited, a leading IT services company providing advanced software education, corporate training and e-business solutions, as a Services Partner for Finacle, its flagship Core Banking Solution. STG, will deliver training and implementation services to the rapidly growing family of Infosys' Finacle customers in India.

Initially, STG will have to undergo intensive classroom and on-the-job training on Finacle Product. Upon successful completion of this process, STG will qualify as a Certified Services Partner and will be able to offer implementation and training services directly to Finacle customers.

"We welcome STG to Infosys' Services Partnership forum. We are committed to providing our customers a wide range of services options. Such alliances, while on one hand will create a richer value proposition to our customers, on the other will offer significant business opportunities for our partners. Partners like STG will be able to leverage their core strengths - training and people - to deliver value to our Finacle customers and grow in the process." said Mr. Haragopal, AVP and Head, Professional Services Group, Banking Business Unit Infosys Technologies Limited.

In his statement, Dr. Suresh Nanda, CEO STG International Ltd. said, "We are happy to be a part of this path-breaking product that will revolutionize the disparate Banking systems that exist today. Finacle is by far the best product that exists today for Indian public and private sector banks because it provides these banks state-of-the-art centralised core banking features and hence an opportunity to meet the changing needs of tomorrow. STG's rich experience in training and services will equip Finacle customers so that they can service their clients better."

"Since the beginning of year 2000, the centralized core banking market in India has been opening up rapidly. In the process Finacle has clearly emerged a winner, clinching 8 out of the 9 deals that have been finalized since January 2000. With the move towards centralised core banking, especially in the public sector and first generation private sector banks, likely to gain further momentum going forward, significant new business opportunities are opening up for partners like STG. By contributing to the success of our customers, our partners can grow and enable us to scale up seamlessly - thereby creating a win-win proposition for all concerned." said Mr. Merwin Fernandes, AVP and Head, Global Sales and Marketing, Banking Business Unit, Infosys Technologies Limited.

About Software Technology Group (STG) International Limited

STG, an ISO 9001 company is leading IT services organisation, focusing on providing advanced software education, corporate training and e-business solutions. Since its inception in 1994 it has grown and gained a presence with over 300 centres spread across 8 countries. It focuses on advanced software training and has trained and upgraded the skill sets of over 2,00,000 software professionals to world standards. STG has alliances with global technology leaders like Microsoft, IBM, Sun Microsystems and Lotus. The American Council also recognizes its courses on Education for credit recommendations at over 1,100 colleges and universities in the US.

About Infosys Technologies Limited

Infosys (NASDAQ: INFY) is IT consulting and service provider, providing end-to-end consulting for global corporations. The company has partnered with several Fortune 1000 companies, providing a wide range of services for technology driven business transformation initiatives. These services include e-strategy consulting and solutions, large application development and enterprise integration services. Infosys also has product co-development initiatives with numerous communication and Internet infrastructure companies that are creating the building blocks for the digital economy. The Global Delivery Model of the company leverages talent and infrastructure in different parts of the world to provide high quality, rapid time-to-market solutions. Infosys' US headquarters is located in Fremont, California; the company also maintains offices throughout the US, Europe and Asia. For more information, visit us on the World Wide Web at www.infy.com.

Safe Harbor

Certain statements in this release 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, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, 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, 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, 2001 and the Quarter Report on Form 6-K for the quarter ended June 30, 2001.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 statement that may be made from time to time by or on behalf of the company.