New Delhi -  April 12, 2001

Year over Year: 100% rise in Post Tax Profits Excluding Extraordinary Items and 89% increase in Total Income.

Q4 over Corresponding Q4: 102% rise in Post Tax Profits Excluding Extraordinary Items and 88% increase in Total Income.

Hughes Software Systems Limited (HSS) reported record financial results for both the 4th Quarter and this fiscal year.

For the financial year ended March 31, 2001, the company reported Profit after Tax of Rs. 629 Million, a 100% increase over the last financial year (Rs. 315 Million excluding extraordinary items of Rs 62 Million). The Total Income reported was Rs. 2095 Million, an 89% increase over the last financial year (Rs.1107 Million after excluding extraordinary items of Rs. 62 Million).

For the quarter ended March 31, 2001 the company reported Profit After Tax of Rs 221 Million, a 102% increase over the corresponding quarter last year (Rs 109 Million excluding extraordinary items of Rs 11 Million) and Total Income of Rs 645 Million, an 88% increase over the corresponding quarter last year (Rs 343 Million).

The HSS board of directors approved these financial results today.

Mr Arun Kumar, President and Managing Director of HSS said, " We continue to do well in a difficult market. During this quarter, the company expanded its customer base by adding 15 new product customers. In addition, the company entered into strategic/marketing tie-ups with Motorola, Nokia and Sun Microsystems. Ericsson and ADC placed product orders with potential for recurring revenues over the next few years. We also continued to increase our employee base with 251 new employees this quarter."

From an operational perspective, the company's emphasis on product development as an integral part of its growth strategy is succeeding. Product sales during the quarter grew at an impressive rate of 77% over the corresponding quarter last year. This resulted in better operating margins for the company. This quarter's EBIDTA and Net Profit improved by 5.66% and 3% respectively over the previous quarter (Q3). The revenue mix for this quarter was 34% from HNS, 36% from services to non-HNS customers and 30% from products.

About Hughes Software Systems (HSS)

Hughes Software Systems Ltd. (www.hssworld.com), is the #1 communications software company in India. HSS offers a broad range of communications-related software services, products, and solutions to leading Communication OEMs and Service Providers around the world.

Assessed at SEI-CMM Level 4 for all its development centres and all projects, HSS been an ISO 9001 company since 1996.

HSS is a subsidiary of Hughes Network Systems, a unit of Hughes Electronics Corporation. HSS has a team of over 1200 world class professionals, at its development centres in India: at Gurgaon, a suburb of New Delhi, and in Bangalore. With sales and support offices in the US and the UK, it is represented throughout Europe, South America, and Asia to support its global customer base.

For more information about HSS 
visit http://www.hssworld.com or contact:

Jay Vikram Bakshi
+91-124-634 6666 x 2865
prcontact@flextronicssoftware.com

Last updated : August 5, 2006