Wipro to invest US $ 10 million in Spectramind

Spectramind eServices Pvt. Ltd., a Business Process Outsourcing and Customer
Interaction Services Provider announced a strategic investment of Rs 480 million
(US$ 10 million) by Wipro Limited in Spectramind. The two companies also
announced a strategic alliance to complement each other's business and offer
comprehensive IT and IT-enabled solutions to key customers, globally.Chrysalis
Capital, the existing venture fund investor, is also investing another Rs 192
million (US$ 4 million) in Spectramind, raising the total second round of
funding to Rs 672 million (US$ 14 million). HDFC and Chrysalis Capital had
invested Rs 360 million (US$ 7.5 million) in Spectramind in the first round of
funding in March 2000.

Kotak Mahindra Capital Company acted as advisors to Spectramind for this
second round of funding. "The IT-enabled sector is complementary to our
business and offers immense growth opportunities. Many of the challenges they
face as an infant industry are those that we have overcome. This investment
allows us to participate in this business opportunity without diluting our per
capita operating margin. In addition, it can open new business opportunities for
Wipro," said Azim
Premji, Chairman, Wipro Limited. "We have carefully evaluated the remote
outsourcing space over the past six months and have zeroed in on Spectramind
due to its experienced management team, the shared values of integrity and
innovation, and commitment to Six Sigma to deliver the highest Customer
Satisfaction."

"The strategic alliance and investment by Wipro reaffirms Spectramind's
leadership in delivering on its core strengths of process, transition and
quality to global customers," said Raman Roy, President and CEO,
Spectramind. "This is for the first time in India that a software company
is
partnering with a remote services company and we see this as a great
opportunity to mutually enhance our business models and profitability."
"Wipro already offers product support services as a secondary or tertiary
level for our computing and telecom customers. As these customers now look
at using India for primary support, out ability to make a joint offer both
expands our market opportunity as well as anchors customers by being a
single stop shop" said Vivek Paul, Vice Chairman and CEO, Wipro
Technologies. "We will now complete the life-cycle partnership with our
technology customers spanning R&D services for product development to
technical support and BPO services."

The Rs 480 million investment by Wipro is by way of Equity shares and
Convertible Preference shares which on a fully diluted basis translates to
an equity stake of more than 20%.

"We are very excited that Wipro is a strategic investor in Spectramind. We
have great confidence in the excellent management team at Spectramind, who
have built a world-class business with state-of-the-art infrastructure and
global customers" said Ashish Dhawan, Managing Director, of Chrysalis
Investment Advisors. "Wipro's investment only reaffirms our faith in the
team and the business."