August 12 2005 Infosys Technologies Limited 2005

August 12, 2005 © Infosys Technologies Limited 2005 - 06

Finacle Girish Vaidya Senior Vice President - Finacle © Infosys Technologies Limited 2005 - 06

Safe Harbor Certain statements made in this Analyst Meet concerning our future growth prospects are forwardlooking 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, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, 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 and regional conflicts, 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, 2005 and quarterly report on Form 6 -K for the quarter ended June 30, 2005. 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 statements that may be made from time to time by or on behalf of the company. August 12, 2005 © Infosys Technologies Limited 2005 - 06

Key Metrics Growth 61% Growth 111% Q 1 FY 05 Q 1 FY 06 8. 1 22. 2 Export % 36% 53% Employees 685 1, 328 Geographic Footprint – No. of countries 37 47 Revenue ($ m) August 12, 2005 © Infosys Technologies Limited 2005 - 06

Market Scenario Core banking replacement wave catching up globally Source : Tower Group Cost of legacy, need for agility & regulatory compliance are driving change Global Tier 1 & Tier 2 banks joining the replacement wave EMEA & APAC lead the pack in core banking replacements Average deal sizes for a Tier 1 bank – $100 M+ Open systems making their presence felt in the mainframe/legacy world Scattered vendor space, no clear global leaders August 12, 2005 © Infosys Technologies Limited 2005 - 06

Key Challenges Competitive scenario Overcrowded marketplace, a fragmented market Very competitive market with some players having an early start vis-à-vis mindshare and market penetration Consolidation in the industry has begun – Oracle & i-Flex, a case in point There is space for large players - It’s a growing market – Core banking replacement alone is going to be $ 34 bn market by 2010 Indian vendors with size and scale continue to have an edge - Like in services, challengers of yesterday are emerging leaders of today Customer expectations (specially Tier 1 & Tier 2 banks in mature markets) Traditionally used to a ‘build’ approach Spaghetti of systems – can the onion be unraveled Perceived high risk of replacement Preference for a SI-led approach Heavily influenced by consultants and analysts India factor Primarily established as a services hub Indian products not established in the global arena August 12, 2005 © Infosys Technologies Limited 2005 - 06

Finacle Advantage Differentiated Value Proposition Infosys edge – End-to-end capability, predictability, delivery depth and a configurable solution stack Converting adversity into opportunity India factor has a silver lining Unique value proposition Maximizing opportunity – agility, growth and process efficiency Minimizing Risk – product & technology, vendor, implementation & support Focus and investments in the right hot buttons Scalability – most scalable core banking solution (>40 Mn TPH) Flexibility beyond parameters Opening up for services-based integration BPM integration Front end and back end separation Web-based thin client August 12, 2005 © Infosys Technologies Limited 2005 - 06

Finacle Advantage Impeccable delivery track record 100% implementation success rate Leveraging the traditional Infosys strengths – Enterprise Solutions & Finacle partnership, joint proposition in key markets Sales and Marketing Strategic segmentation – focus on Tier 1 and large regional banks Leveraging alliances and partners to extend reach, delivery capability & provide comfort – successes with HP, Sun and Oracle Focus on achieving brand leadership – a comprehensive relationship marketing program has been rolled out August 12, 2005 © Infosys Technologies Limited 2005 - 06

Finacle @ICICI A case study © Infosys Technologies Limited 2005 - 06

Market Dynamics In The Early 90’s Customers Segments Rural and urban consumers & SME’s Competition Public sector banks Constraints • Largely manual processes • Little use of technology • Low customer service focus Opportunity spotted by ICICI August 12, 2005 Growing Middle Class & Emerging Corporates High net worth individuals & Large and established corporate houses Foreign banks • Handful of banks • Low penetration • Customer-centric focus for high-end customers only Quality customer service through cost effective operations © Infosys Technologies Limited 2005 - 06

Technology – The Means To This End Deployment of Finacle core banking (including retail & corporate banking & branch solution), consumer e-banking, corporate e-banking, mobile and CRM solution Integration of Finacle with multiple applications to provide seamless straightthrough-processing of transactions Creation of a central/ regional processing unit to handle growth in back office business Use of the branch network as aggressive customer acquisition units Use of powerful CRM features to improve customer centricity and focus on cross selling “Our objective of creating a universal bank providing end-to-end financial services clearly required solutions which were based on new generation technology, offered end-to-end functionality and were highly flexible and scalable. Finacle offered all this and much more. ” - Ms. Chanda Kochhar, Executive Director, ICICI Bank August 12, 2005 © Infosys Technologies Limited 2005 - 06

The Results Efficiency improvement Clear choice on avoiding legacy traps – no mainframes Lower TCO – 15 -20% of mainframe based systems Back-office operational efficiency Customer-centric banking – centralized operations, account opening and cheque processing Leveraging capabilities of multi-channel delivery First to launch Internet banking in India Cost-efficient operations by shifting routine transaction from branches to other channels “Finacle has enabled ICICI Bank Ltd. to achieve competitive advantage by enabling rapid roll out of new products, faster customer service and reduced time to market. . . ” - Mr. P. K. Vohra, General Manager and Head Retail Technology Group, ICICI Bank August 12, 2005 © Infosys Technologies Limited 2005 - 06

The Results – Leveraging Channels and Volume Growth Share of Transactions Volume Growth Channels Share of Transactions March 2000 March 2004 Branches 94% 25% ATM's 3% 43% Internet and Mobile 2% 21% Call Centers 1% 11% August 12, 2005 © Infosys Technologies Limited 2005 - 06

Accolades ‘Best Multi-Channel Strategy 2003’ award by The Banker Magazine, U. K. ‘Best consumer and corporate / institutional Internet bank in India’ by Global Finance, 2004 Rated the ‘Best Retail Bank in India’ by the Asian Banker Journal, Singapore, 2004 Rated the 2 nd Best Retail Bank in Asia by the Asian Banker, 2005 August 12, 2005 © Infosys Technologies Limited 2005 - 06

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