Cognizant announces 2:1 stock split

Information technology services provider and Nasdaq-listed Cognizant Technology Solutions Corporation today announced that its board of directors has declared a two-for-one stock split on its capital stock in the form of a stock dividend.

The board's decision to increase in the company's capital stock is subject to stockholder approval at the upcoming annual meeting scheduled for May 26, 2004.

This is the third time that Cognizant is announcing a stock split and the second time in slightly over a year.

In March 2003, Cognizant announced a three-for-one stock split, and in February 2000, it announced a two-for-one stock split.

Subject to such approval, stockholders on record as of May 27, 2004 will be entitled to one additional share of common stock for each share held on the record date.

The stock dividend distribution is expected to occur on or about June 17, 2004 and it is anticipated that the company's Class A common stock will begin trading on a post-split basis the business day following the distribution date.

Lakshmi Narayanan, president and chief executive officer, said, "The stock split recapitalisation reflects the Board's confidence in the company's future prospects. This stock split is expected to result in a trading volume and trading range for our stock likely to appeal to a broader spectrum of investors."

Cognizant's stock price has increased the most amongst the large listed IT services players leveraging India and listed on US stock exchanges.