Megasoft strengthens infra with merger of Visualsoft

Megasoft has been a leader in providing R&D and innovative software solutions to mobile service providers and this acquisition is expected to help it to scale its product offering portfolio faster. The acquisition also gives Megasoft additional resources in terms of back office for all the new contracts to be signed in Americas and Europe.

GV Kumar, MD & CEO, Megasoft Ltd. said, "The growing global telecom outsourcing to India and the fast expanding MVNO market meant that we needed to strengthen our operations. With almost 250 "� 300 telecom trained expertise readily available, right here in Hyderabad with a terrific infrastructure and CMMi level 5 was a crucial clincher for this merger. The combined entity is well poised to win large and strategic outsourcing deals in Telecom, in the specialist domains of roaming, interoperability infrastructure, subscriber authentication and OSS technologies."

Sudhakar R Gunturu, Managing Director VisualSoft Technologies said, "We see tremendous growth opportunities through this merger with Megasoft. This will enable us to offer a compelling portfolio of product engineering and other high end value added solutions to our customers across the globe."

The top management of both companies has reiterated their commitment and focus on executing this exercise smoothly.

Deal Highlights

Financial

Valuation approx Rs. 172 crores (Assuming market prices. Likely ratio ; Every 8 shares of VisualSoft will be replaced with 5 shares of Megasoft)

All-stock deal

Closing expected in 4-6 months

Operational

GV Kumar to head the whole Megasoft operations including VisualSoft, post merger

About Megasoft Limited

Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition "� from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of Xius with it in 2004, Megasoft's Telecom offerings are now being offered to Telecom operators across all continents. Additional information about Megasoft is available at www.megasoft.com

About VisualSoft Technologies

VisualSoft Technologies is a leading software solutions and Outsourced Product Development company. Founded in 1995, VisualSoft's Technology Development Center is located in India with offices spread across the globe. With SEI-CMM Level 5 quality practices and excellent development teams, VisualSoft has been successfully empowering its customers globally with innovative end-to-end technology solutions. More information on VisualSoft is available at www.visualsoft-tech.com