1. Performance of Infosys for the Third Quarter ended December 31, 2001 10-January-2002 Nandan M. Nilekani Managing Director, President and Chief Operating Officer Nandan M. Nilekani Managing Director, President and Chief Operating Officer

2. Safe Harbour 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 quarterly report on Form 6-K for the quarters ended June 30 and September 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.www.sec.gov

3. Agenda  Financial Performance  Operational Performance  Client acquisition and significant projects undertaken  Human resources  Infrastructure  Outlook for the future

4. Financial Performance

5. The Quarter at a Glance (Indian GAAP) 23% Total income (Rs.cr) Exports (Rs.cr) 23% Operating profit (Rs.cr) 537.07 Q3 01Q3 02 660.81 529.24 648.35 Q3 01Q3 02 217.46 267.45 Q3 02 Q3 01

6. The Quarter at a Glance (Indian GAAP) PBT (Rs.cr) 30% 24% PAT (Rs.cr) 24% Basic EPS (Rs) 185.83 Q3 01Q3 02 241.04 166.33 206.04 Q3 01Q3 02 31.14 Q3 02 Q3 01 25.14

7. Highlights Q3 FY 02Q2 FY 02 9 Months FY 02  Indian GAAP  Y-O-Y Growth Income 23.0% 45.7%43.7% PAT from ord. activities 23.9%30.9%35.3%  New clients332887  Repeat business 85.7%90.0%90.2%  Headcount  Gross addition 219 8331367  Net addition 109 607832  Period end headcount 10,663 10,55410,663

8. Highlights (Indian GAAP) (Rs.cr) FY2002FY2002FY2001 % growth over Q3Q2Q3Q2 02Q3 01 Income660.81650.13537.071.623.0 S/w development expenses309.50306.95250.140.823.7 Gross profit351.31343.18286.932.422.4 S,G&A expenses83.8684.2669.47 (0.5)20.7 Operating profit267.45258.92217.463.323.0 Depreciation41.3439.0233.025.925.2 Operating profit after depreciation226.11219.90184.442.822.6 Other income 14.9314.6614.471.83.2 Provision for investments--(13.08)-- PBT241.04234.56185.832.829.7 Provision for tax35.0033.0019.506.179.5 PAT from ordinary activities206.04201.56166.332.223.9

9. Highlights (Indian GAAP) (Rs.cr) FY2002%FY2001 % Growth 9 Months Income1923.46100.01338.70100.043.7 S/w development expenses902.0146.9625.5746.744.2 Gross profit1021.4553.1713.1353.343.2 S,G&A expenses254.5713.2181.6113.640.2 Operating profit766.8839.6531.5239.744.3 Depreciation115.836.074.995.654.5 Operating profit after depreciation651.0533.8456.5334.142.6 Other income 43.082.249.163.7(12.4) Provision for investments--(13.08)(1.0)- PBT694.1336.1492.6136.840.9 Provision for tax96.505.050.963.889.4 PAT from ordinary activities597.6331.1441.6533.035.3 Extraordinary items--5.490.4- Net profit after ext. items597.6331.1447.1433.433.7

10. (Rs.cr) Dec 31, 01%Dec 31, 00% LIABILITIES Shareholders’ funds1,949.931001,261.09100 Total liabilities1,949.931001,261.09100 ASSETS Fixed assets725.2937457.2336 Investments 44.44236.333 Deferred tax assets22.331-- Current assets Cash & equivalents 866.3545517.7541 Accounts receivables 310.5316303.9624 Other current assets377.7919202.7216 Less: Current liabilities(396.80)(20)(256.90)(20) Net current assets1,157.8760767.5361 Total assets1,949.931001,261.09100 Balance Sheet Summary

11. FY2002 FY2002FY2001FY2002FY2001LTMLTM Q3Q2Q39 Months9 MonthsDec 01Dec 00 North America70.9%71.1% 73.6%71.4%74.3%71.4%74.9% Europe19.4%18.9%18.8%19.4%18.1%19.6%17.7% India1.9%1.8%1.5%2.1%1.3%2.0%1.4% Rest of the world7.8%8.2%6.1%7.1%6.3%7.0%6.0% Total100.0% 100.0%100.0% 100.0%100.0%100.0%100.0% LTM – Last Twelve Months Region wise Revenue (%)

12. Operational Performance

13. Highlights  Software revenues in US dollar terms grew by 0.2% for the current quarter as compared to the quarter ended September 30, 2001. Revenue growth comprised volume growth of 3.4% offset by a price decline of 3.2%

14. Utilization Rates

15. Revenues by Project type FY2002FY2002FY2001FY2002FY 2001LTMLTM Q3Q2Q39 Months9 MonthsDec 01Dec 00 Fixed Price35.1%29.9%29.4% 30.7%28.0%30.2%28.9% Time & Materials64.9%70.1% 70.6% 69.3%72.0%69.8%71.1% Total100.0% 100.0%100.0% 100.0%100.0%100.0%100.0% LTM – Last Twelve Months

16. Onsite-Offshore Revenue split FY2002FY2002FY2001FY2002FY2001LTMLTM Q3Q2Q3 9 Months 9 Months Dec 01Dec 00 Onsite49.9%50.3%51.4% 50.3%52.8%49.8%52.2% Offshore50.1%49.7% 48.6% 49.7%47.2%50.2%47.8% Total100.0%100.0%100.0% 100.0%100.0%100.0%100.0% LTM – Last Twelve Months

17. Customer Concentration FY2002FY2002FY2001FY2002FY2001 Q3Q2Q3 9 Months 9 Months Top client contribution to revenues5.5%6.4%7.7% 6.2%7.5% Top 5 client contribution to revenues 24.1%25.3% 28.1% 24.6%25.9% Top 10 client contribution to revenues 38.3% 39.7%42.5% 39.7%38.5% Million dollar clients* 9084779077 Five million dollar clients*2422152415 Ten million dollar clients*13146136 LTM – Last Twelve Months

18. Diversifying Customer Risk

19. YearAR% ofDSO (mn$) Revenue Dec 31, 200164.5112.144 Dec 31, 2000 65.1017.062 Mar 31, 2001 64.9415.958 Accounts Receivables

20. Client Acquisition and Significant Projects Undertaken

21.  Client acquisitions during the quarter was 33 as compared to 28 in the previous quarter  Established new alliances with world leaders in various domains including manufacturing, retail and financial services  To help SunAmerica transform its legacy Policy Administration System to a new web-based architecture  Creating a roadmap and an implementation plan for an Enterprise Portal for a banking, insurance and asset management leader in Europe that is one of the largest global financial conglomerates  Clients added in the retail segment include Target Corporation, America’s fourth largest general merchandise retailer Software Services

22.  Won an engagement from the largest independent supplier of heating, ventilating, air conditioning and refrigeration equipment in the US  Assisting the European operations of a leading Fortune 500 electronics and hi-technology products manufacturer in developing an end-to-end solution for its executive level reporting  The Hertsmere Borough Council of National Health Service, UK was added to the client portfolio with a business consulting engagement  Infosys is the only Indian company to be included in the UK Government’s single-window Services Catalogue (S-Cat) aimed at government departments who wish to purchase IT services  Signed up with a Fortune 500 company that is a world leader among air express delivery carriers Software Services

23.  Chosen to work with Texas Instruments, the world leader in real-time technologies  Successfully designed, developed and deployed an online insurance loyalty portal for a large Fortune 100 insurance company in Japan  Successfully implemented a web-based online funds transfer application for an insurance industry major  Partnered with Aizawa Koatsu Concrete KK, to develop new applications including logistics management and sales and purchase systems

24. Banking Products  Infosys’ core banking solution, Finacle TM was implemented in Cosmos Cooperative Bank, one of India’s oldest banks, and ABN India  Entered into an agreement with ICICI to offer India’s first end-to-end financial fulfilment product, enabling online financial transactions between enterprises  Forged a strategic partnership with Accenture, Nigeria, for delivery of services and solutions

25. Human Resources

26.  Total employees strength at 10,663 as on December 31, 2001, up from 9,831 as on March 31, 2001 and 8,910 as on December 31, 2000  Net addition of 109 employees during the quarter as compared to 607 during the quarter ended September 30, 2001  151 lateral employees joined during the quarter  9,361 software professionals as on December 31, 2001, up from 8,656 as on March 31, 2001 and 7,824 as on December 31, 2000

27. Infrastructure

28.  Capital expenditure of Rs. 53.05 cr was incurred during the quarter  As of December 31, 2001, the company had 22,39,500 sq. ft of space capable of accommodating 11,350 professionals and 13,00,000 sq. ft under construction including the Infosys Leadership Institute

29. Outlook for the Future

30. Indian GAAP  Quarter ending March 31, 2002  Income from software development services and products expected to be between Rs. 636 cr and Rs. 660 cr  Earnings per share expected to be between Rs. 30.00 and Rs. 32.00  Fiscal year ending March 31, 2002  Income from software development services and products expected to be between Rs. 2,560 cr and Rs. 2,584 cr  Earnings per share expected to be between Rs. 120.00 and Rs. 122.00

31. Summary

32.  Reported a comfortable quarter  Pricing pressure continues  Business environment remains challenging  Effective cost management  Established new alliances with world leaders in various domains  Prepared to seize business opportunities

33. Thank You