Kale posts steady growth in FY10
Revenue grows 23%; PAT grows at 89%

Mumbai, April 22, 2010: Brief Highlights:

• Airline business sees increased traction, signs up 6 new customers
• Awarded “Emerging IT Solutions Provider in the Logistics Industry”
• Introduces Technology Adoption Index for Logistics industry, a first-of-its-kind industry benchmark to derive their technology effectiveness and business competitiveness
• Launches integrated travel technology solution – RAINBOW^TM
• Standalone EPS for the year at Rs. 14.53 per share; Consolidated EPS at Rs. 19.45

Kale Consultants Limited, the leading solutions provider to the Airline, Airport, Logistics and Travel (AALT) industry, has recorded revenues of Rs. 1,267.30 million for the year ended March 31, 2010, as compared to Rs. 1,026.22 million for the previous year, a growth of 23%. PAT stood at Rs. 191.40 million compared to Rs. 101.34 million in the previous year, a growth of 89%.

For the quarter ended March 31 2010, Kale recorded revenues of Rs. 382.14 million as compared to Rs. 284.79 million during the previous year, a growth of 34%. PAT stood at Rs. 66.53 million compared to Rs. 42.48 million in the previous year, which is a growth of 57%.

Consolidated revenues for the year ended March 31, 2010, stood at Rs. 1,659.20 million as compared to Rs. 1,446.57 million during the previous year, a growth of 15%. Operational PBT stood at Rs. 259.13 million as compared to Rs. 215.96 million in the previous year, which is a growth of 20%. For the quarter ended March 31, 2010, Kale has recorded consolidated revenues of Rs. 464.24 million as compared to Rs. 387.19 million for the corresponding quarter of the previous year, a growth of 20%. Operational PBT stood at Rs. 66.97 million as compared to Rs. 70.29 million during the corresponding quarter of the previous year.

Commenting on the performance, Narendra Kale, Chairman, said, “The last year has been a challenging year for the airline, travel and logistics industry and therefore for solution providers like ourselves. Our results speak for our differentiated solutions and the trust and resilience of our business model. Further, we are pleased to recommend a dividend of Rs. 2 per share.”

Highlights for the year ended March 31, 2010

· LOT Polish Airlines selects Kale’s passenger revenue accounting solution REVERA® Kale’s comprehensive new generation solution to help airline automate and increase efficiencies in their existing PRA processes. The solution will be deployed as a hosted model, giving the airline better control on costs and access to best practice data center capabilities.

· Jet Airways selects Kale’s Zero Octa for audit services

Zero Octa, the specialist audit subsidiary of Kale Consultants Ltd, and the leading provider        of revenue recovery and audit services to airlines globally, today announced that India’s           premier international airline, Jet Airways, has selected Zero Octa to audit its passenger          accounting results.

· A large European airline has selected Kale’s Passenger Revenue Accounting solution

The large European carrier has selected Kale’s REVERA® for its passenger revenue accounting requirements on licensed basis.

· A leading south-east Asian airline has selected Kale for PRA and CRA

The South-east Asian flag carrier has selected Kale’s REVERA® & AMBER® solutions for its passenger & cargo revenue accounting requirements. The airline will deploy these solutions on licensed basis.

· An African flag carrier has selected Kale for outsourced PRA
The flag carrier has outsourced its Passenger Revenue Accounting to Kale MPS

· Leading Indian logistics player chooses Kale’s suite of solutions
One of India’s oldest and leading logistics businesses has chosen Kale’s suite of logistics solutions, which include – FMS (Freight Management System), CAPELLA (CFS/ICD Management System) and its integrated accounting package.

· Launched the “Technology Adoption Index for the Logistics industry” (TAIL). The first-of-its-kind report, includes a detailed study covering over 235 companies, in an attempt to arrive at a simple integrated measure of technology adoption in the Indian logistics industry. The index will now serve as an industry benchmark for logistics companies to derive their technology effectiveness and business competitiveness.

· Kale Consultants was awarded ‘Emerging IT Solutions Provider in the Logistics Industry’. Kale received the award at the Express, Logistics & Supply Chain (ELSC) Conclave 2009, The special jury award was given as recognition for Kale’s contribution to the industry over the last two years.

· Kale forays into Consulting and Data Analytics

With over two decades of experience in the airline domain, the new division will provide a     unique approach to consulting backed by state-of-the-art data analytics

· Kale introduces DoC Payables Audit Service

Direct Operating Costs (DoC) Payables Audit service is a part of Kale’s Airlines Financial              Management Solutions portfolio. DoC forms a siginificant component of an airline’s overall          cost structure, hence it is crucial for airlines to audit and exercise control on these payables.

· Kale launches integrated travel technology solution – RAINBOW^TM

RAINBOW^TM, is a comprehensive travel technology solution, that automates the front, mid and back office functions of a typical Travel Management Company.  RAINBOW’s multi-product distribution framework allows product distribution via traditional and online channels. The solution was launched at the Travel Agents Association of India Convention (TAAI) in Dubai.

· Kale Consultants and MAIA Intelligence Pvt. Ltd. enter into a partnership to jointly help address the Business Intelligence (BI) requirements of the Logistics & Transportation Industry.

· eToursCRS ties up with Kale for providing services through RAINBOW^TM platform

This partnership will help eToursCRS promote their service offerings through Kale’s best-in-class travel platform RAINBOW^TM.

· Kale’s client base now comprises over 120 customers worldwide, this includes 15 of the top 20 airlines. Kale’s airline customer base also includes two of the world’s largest airline alliances, SkyTeam and Star Alliance.

Kale Consultants provides comprehensive revenue accounting, cargo, financial management, consulting and analytics solutions to airline industry. For the logistics industry Kale provides solutions to the entire value chain including, carriers, shippers, airports, freight forwarders and container freight stations. Solutions for the travel industry include an end-to-end platform for travel operators.

Kale’s suite of solutions are available in licensed, hosted and outsourced deployment models. Kale’s innovative pay-for-use hosted platform model is beneficial for customers since it reduces upfront investments. The return on investment on the pay for use model is quite fast since the business benefits of the solution pays for itself. Kale also offers a transaction based pricing that is tailored to the clients’ business. Similarly, Kale’s audit and revenue recovery services helps airlines recover lost revenue. The recovery is a direct addition to airlines profitability and helps customers identify gaps and plug revenue leakages. Thus Kale’s solutions reduce capital expenditure and offer flexible pricing models, thereby sharing risks and rewards.

Editor Notes

About Kale Consultants Limited:

Kale Consultants Limited is a leading solutions provider to the global Airline, Logistics and Travel (ALT) industry. Committed to innovation and excellence, Kale delivers world-class software products, technology, managed process, hosting and consulting services. Kale employs over 1600 talented professionals who focus on delivering quality service to over 120 satisfied customers across 30 countries.

Kale’s Industry Solutions are driven by active partnerships with industry bodies and customers, and unparalleled domain knowledge. Kale’s Customised Approach in deploying these solutions supports clients with best fit solutions to match to their requirements. Visit us at www.kaleconsultants.com

Investor Relations

Kale Consultants Ltd is committed to create long-term sustainable shareholder value through successful implementation of its growth plans. The company’s investor relations mission is to maintain an ongoing awareness of its performance among shareholders and financial community.

Safe Harbor

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, 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. 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.