BlueAlly will have premier offerings in the Product Lifecycle Management (PLM) and Application Development, Maintenance, and Services (ADMS) space, designed to effectively accelerate concepts to market, and provide comprehensive support of customers’ business applications across their entire lifecycle.

Software product developers continue to search for effective PLM service providers that will give them an edge in terms of reduced development costs and expedited time-to-value. But increasingly market research indicates that, beyond cost and speed, the key to overcoming competitive pressures among product developers is to relentlessly innovate, create new markets, and deliver flawlessly at the right instance. Winning product developers, i.e., whose vision gets successfully translated to reality, are those who seek a partner who shares their passion and can collaborate effectively to expand, build on, nurture, protect, and profit from their idea.

“The launch of BlueAlly is a very strategic step for Megasoft and is a perfect example of our commitment to evolving new service and partnership models that deliver to our customers innovation throughout the lifetime of an engagement. We are really excited about bringing out the industry first, comprehensive productized process framework for PLM to the market”, said GV Kumar, CEO and MD of Megasoft. “Our IP-CP3 platform will form the core of BlueAlly’s concept to market partnership which not only helps customers get a head-start on the development of their next generation products, but also lead in their respective market spaces” Mr. Kumar added.

The result of a strategic combining of the experience, expertise, methodologies, and partnerships of several Megasoft group entities, BlueAlly is organized to address the PLM and ADMS market in a unique and highly effective manner. Mr. Kumar further explained that with over 25 years of combined experience from Megasoft, XIUS, and VisualSoft playing a major role in the Product Development segments, it was logical to leverage the combined set of assets into BlueAlly, enabling it as the number one “go-to” company in the PLM and ADMS space. To start with, BlueAlly has in place active partnerships with over 20 product-intensive companies in a wide range of market sectors, including High-Technology, Insurance, Health Care and Telecom.

Launching new business initiatives, re-engineering existing products and applications for enhanced functionality and cost efficiency, and looking for early adoption of new delivery models all are key catalysts for growth in the product space. Partners like BlueAlly can add to the momentum by offering a customized experience in relationship, engagement model, solutions, tools, processes, and meaningful metrics – an experience that our customers can take advantage of when building their next level of business explained Vijay Tanamala, President and Chief Customer Advocate of BlueAlly.

“BlueAlly will define the future of outsourced PLM through a success-vetted and compelling combination of process frameworks, innovation platforms such as the IP-CP3, and industry-leading partnership models” he said.

About the IP-CP3 Platform
The IP-CP3 (IP Creation, Procurement, Protection, and Propagation) platform is a comprehensive framework developed by BlueAlly based on their vast experience in the Product development space. It is the industry’s first platform optimized for Concept to Market partnership. With increased flexibility and a best of breed ecosystem of expertise, this platform can help product developers to lead, consistently and securely, in their fast-evolving industry.

Sudhakar Gunturu, Head of Global Deliver and Technology, added, “BlueAlly which today has a 1,000 person dedicated team across the US and India-based centers, will be on a fast track to ramp up to a 2,000 person team by the end of Q4 in 2007. The company is also enhancing its existing research and development facilities in India by building a new, two million square feet development campus in the Technology corridor of Hyderabad, India.

For more information please visit www.BlueAlly.com and www.Megasoft.com

“In 2006, the Company generated record revenues and record earnings as we continue to experience strong performance on our operating fronts,” said Managing Director & CEO, GV Kumar. “The financial results are a testament to our business model, and are reflective of our ability to leverage our product innovation and customer focus strategy in the telecom segment to take advantage of where the opportunities lie. We will continue to focus on the US market apart from our forays into other newer markets. In 2007, we expect to continue our organic growth coupled with inorganic growth through M&A in telecom segment focused in North American and European geographies. Telecom would continue to be the driving force for Megasoft” added Mr. Kumar.

About Megasoft Limited
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange. Additional information about Megasoft is available at www.megasoft.com.

Speaking from Barcelona, Mr. GV Kumar, Managing Director & CEO, Megasoft Ltd. & XIUS, said “XIUS has endeavoured to develop innovative products and solutions for the global telecom industry year after year. For the end-mobile user, MYPeers will revolutionize the way he communicates with his peers. For industry players, in today’s falling ARPU scenario, MYPeers will add a potent revenue stream to MVNOs, MNOs and other telecom service providers by enabling them to provide enhanced peer-to-peer communication tools”.

To explain what it means in terms of applications, let us consider two friends ‘A’ & ‘B’. Between the two peers, when ‘A’ sends an SMS to ‘B’ asking him to meet him at Starbucks, the MYPeers engine adds to the message, additional and useful information, such as contact numbers for a taxi, directions on how to reach Starbucks etc. Such a context-based messaging assists ‘B’ to reach Starbucks without him having to make efforts. By this many end users would get relevant help based on content sent from the source peer.

Peer-to-peer value-add in active communication is touted as the next ‘killer application’ in communication. The adoption of this new innovation, on peer to peer active content enhancement, will enable service providers an additional stream of revenue from the content and advertisement industry and also indirectly through subscription of the service.

This also helps service provider to subsidize, incentivize or just provide additional benefits to subscriber services. MYPeers’ Real time value-add to active communication is enabled through multi channels viz., Short Message Service, Multimedia message, Instant Message, Email, Video sharing, Video over SS7, TDM, HTTP, SIP etc. The subscriber initiates this enhancement services based on his destination, demography, content and location, making it a very unique model in today’s world of communications.

The target market for MYPeers include MVNOs, MNOs, ISPs, cable operators, IP service providers and many other types of telecom service providers. Initially to be introduced in the US and European markets, it will subsequently be made available throughout the globe.

About Megasoft Limited – www.megasoft.com
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of XIUS with it in 2004, Megasoft’s Telecom offerings have been deployed by many operators across all continents.

XIUS (The Telecom division of Megasoft) – www.xius.com

XIUS is one of the fastest growing Telecom Products and Solutions organization in the world. Its end-to-end innovative products and solutions to multiple segments of the telecom industry span the markets of Mobile and Fixed Telephony, Internet Telephony as well as Mobile Commerce services. These include Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers; billing and payment processing solutions to Telephony, Banking, E-Commerce and Internet Applications markets.

Mr. GV Kumar said, Kerry will be a valuable asset to the organization especially in the light of our expansion in key markets. XIUS has been on a growth drive over the years and Kerry’s rich experience across both established as well as emerging markets, will add buoyancy & momentum to our new business initiatives”.

Kerry’s last role was to spearheaded global business development and an operational lead role for Asia Pacific. He was one of the early pioneers in both wireless data services and mobile services delivery, as well as in the underlying infrastructure solutions required to deliver these carrier grade value-added services.

His relationship network reads like the “Who’s Who” of telecom, content and media companies across Asia. In 2006 he was nominated to become a prestigious member of Society of Industrial Leaders by Standard and Poors in New York.

He has extensive operational management, sales and account management experience. As VP Global Sales and Business Head for Asia at iO Global Ltd, He led their market entry into Asia, Europe Middle East and Africa. As VP Global Sales at Mobile Cohesion, he successfully built a dynamic sales and market-driven organization. He was the only non-Asian board member for Korea’s SK Telecom, where he led the development of the Asian and European mobile wireless business. At Nokia as a Senior Director and Regional Vice President, in both the UK and in Singapore, he successfully led the aggressive sales growth for advanced wireless services and handset solutions in Europe and Asia Pacific.

He initially built his strong IT and telecom services experience at Ericsson Telecom AB, where he was the Latin America General Manager, and the BT Global Account Manager. Prior to this he worked with the European Commission in leading edge broadband R&D.

About Megasoft Limited (www.megasoft.com)
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of XIUS with it in 2004, Megasoft’s Telecom offerings have been deployed by many operators across all continents.

XIUS (www.xius.com), (The Telecom division of Megasoft) is one of the fastest growing Telecom Products and Solutions organization in the world. Its end-to-end innovative products and solutions to multiple segments of the telecom industry span the markets of Mobile and Fixed Telephony, Internet Telephony as well as Mobile Commerce services. These include Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers; billing and payment processing solutions to Telephony, Banking, E-Commerce and Internet Applications markets.

Meant for new and fast-growing operators, the XIUS RoamFree will offer end-to-end roaming solutions and take up the entire responsibility of setting up and running their roaming services. This will help operators focus on the subscribers and move away from simple product-offerings to more comprehensive services. It will also help reduce the time to market and reduce the cost of setting up a roaming facility. Starting from an operational home network stage, RoamFree will cover all aspects of setting up, launching and running the roaming services across all phases.

On the launch of RoamFree, Mr. GV Kumar, MD & CEO, Megasoft Limited, stated, “Staying is touch, for both personal and business purposes, is fast growing into a necessity. RoamFree’s ability to offer an end-to-end solution for global roaming will facilitate operators to rapidly set up wide-ranging services for their global roaming footprints and enable seamless mobile services for end users worldwide.”

Added Mr. Kumar, “It is estimated that the global roaming revenues, both from expansion and new markets, will grow from US$ 450 Million to US$ 600 million, and RoamFree is set to address the larger part of the roaming revenue potential. RoamFree is a comprehensive end to end roaming solution that provides tremendous benefits to both the operators and their subscribers.”

About Megasoft Limited (www.megasoft.com)
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of Xius with it in 2004, Megasoft’s Telecom offerings are now being offered to Telecom operators across all continents. Additional information about Megasoft is available at www.megasoft.com

About XIUS
XIUS (www.xius.org), the telecom division of Megasoft, is a leading global provider of Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers.

The range of services to be provided by Megasoft under the deal, include SMS Auto Correct, PowerRoam, SmartRoute, Welcome Notification, InstaRoam, SMS aggregation and others. The deal size is a little over US $ 1 million.

Announcing the deal, Mr. GV Kumar, MD & CEO, Megasoft Limited, said “It is a prestige for Megasoft to enable a superior mobile service in the Bangladesh market. With the help of XIUS, Teletalk Bangladesh has become the only operator to provide International SMS with its SMS Aggregation tool and instant Roaming access to 400 networks where as they had just 30 bilateral prior to our deal thus providing worldwide connectivity to the valued customers of Teletalk.”

Commenting on the deal, Md Obaidullah, Managing Director, Teletalk Bangladesh, stated “This is the first time 0.4 millions of subscribers in Bangladesh will benefit from a range of services and help in improved end-user satisfaction including Instant International Roaming as well as SMS services for the out roamers.”

About Megasoft Limited
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of Xius with it in 2004, Megasoft’s Telecom offerings are now being offered to Telecom operators across all continents.

Additional information about Megasoft is available at www.megasoft.com

XIUS (www.xius.org), the telecom division of Megasoft, is a leading global provider of Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers.

About Teletalk Bangladesh Limited
Teletalk Bangladesh Limited is owned by the Bangladesh Government and formed as a public limited company under the Companies Act 1994 on 26th December 2006.

Under this agreement, Megasoft will provide core services to MTNL New Delhi, including the signing up of roaming bilaterals, and also includes roaming management services. This deal will benefit millions of MTNL subscribers as this innovative XIUS solution to MTNL will provide instant access to subscribers. It will also enable an automatic selection of the network while the customer is roaming instead of manual switching over the network.

Mr. GV Kumar, MD & CEO of Megasoft, said “MTNL is one of the largest telecom companies in India and we are delighted to be their selected as their partner. This will result in an increased customer satisfaction level and also widen MTNL’s roaming network with the help of our manpower expertise and services. This cutting edge service from XIUS would enhance their customer satisfaction and also the revenue generation opportunities.”

About Megasoft Limited
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition – from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. After the amalgamation of Xius with it in 2004, Megasoft’s Telecom offerings are now being offered to Telecom operators across all continents. Additional information about Megasoft is available at www.megasoft.com

XIUS (www.xius.org), the telecom division of Megasoft, is a leading global provider of Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers.

Los Angeles based Xero Mobile is both an Advanced MVNO (Mobile Virtual Network Operator) and a media sales organization. Xero is targeted to the college student community and will provide high specification handsets along with a variety of targeted services.

Announcing the deal, G.V. Kumar MD & CEO — Megasoft mentioned “This is a very prestigious win for Megasoft and we are very excited at the opportunity of working with a pioneering organization like Xero Mobile. The agreement is a clear demonstration and validation of the value and attractiveness of our VOISE solution for innovative MVNOs aiming to acquire and support a large subscriber base within aggressive timelines.” Mr. Kumar added that the contract with Xero Mobile is a multi-million multi-year contract and Megasoft will be responsible for the providing a customized and turn-key management of an end-to-end network agnostic VOISE platform for enabling Xero’s mobile launch and would also include supply of several other professional services as the project moves forward.

Commenting on the deal, Peter Lilley, CEO — Xero Mobile, mentioned, “We look forward to working with XIUS and leveraging on their knowledge and experience in the area of authentication, billing, subscriber ownership and interoperability, particularly in the mobile domain. Our partnership with XIUS will enable us to provide relevant and quick responses to the changing needs of the subscribers.”

Added David Levett, CTO — Xero Mobile, “We evaluated several service delivery and MVNE alternatives and chose the VOISE platform for its unique ability to provide service flexibility, pricing flexibility, brand flexibility and customer ownership. XIUS has developed a comprehensive plug-n-play solution that will greatly enhance our capability to rollout innovative customer specific services, enabling us to concentrate on our core business. We expect the VOISE platform will help us to dramatically save on time-to-market while enhancing and enriching the brand experience of our subscribers.”

About XERO Mobile (http://www.xeromobile.com)
Los Angeles based Xero Mobile is both an advanced MVNO (Mobile Virtual Network Operator) and a media sales organization that combines two of the largest and most dynamic markets in the U.S. — mobile phones and advertising. Xero is targeted to the 17.3 million strong college market, and will provide high specification handsets without contract and at notably competitive prices. In return, students will agree to accept a small number of relevant video ads on their handset each day. Each ad provides the student with free mobile airtime.

The launch of Xero Mobile commences in the Fall of 2006 with a focus on college students in over 350 targeted U.S. markets. Prominent national advertisers will be able to send permission based TV-style ads with the accuracy of direct mail, and the accountability of the web — delivered with the intimacy of mobile. The company is publicly traded on the Over-The-Counter Pink Sheets
under the symbol “XRMB”.

About Megasoft (http://www.megasoft.com)
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition — from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock Exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. Megasoft and XIUS India Limited (XIUS — a successful provider of mobile telephony platforms and products) amalgamated in 2004, resulting in a combine that has strong suite of products, applications and technology platforms including deep knowledge and experience to cater to the global telecommunication industry. This means that Megasoft’s Telecom offerings, which were built with global usability and quality, can now be offered to Telecom operators across all continents. XIUS, the telecom division of Megasoft, is a leading global provider of Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers.