Exhibit -Sensitivity Analysis

1. Varying return on equity and terminal growth rate

Terminal Growth Rate
$48.37 -5% -3% 0% 3% 6% 9% 12% 15% 18% 21%
5.25% 104.60 108.20 118.74 157.43 0.00 49.11 67.17 74.11 77.79 80.07
8.00% 86.68 88.56 93.11 103.16 143.33 0.00 42.90 57.24 62.99 66.08
12.13% 65.84 66.70 68.52 71.52 77.48 94.82 913.16 20.69 40.46 46.86
Return on Equity
15.30% 53.08 53.60 54.63 56.17 58.70 63.64 77.58 370.16 12.57 31.39
17.28% 46.13 46.53 47.29 48.37 50.01 52.87 58.94 81.04 0.00 18.32
19.46% 39.28 39.57 40.12 40.88 41.98 43.70 46.81 54.10 91.36 0.00
26.34% 21.70 21.82 22.07 22.37 22.74 23.27 24.01 25.13 27.08 31.19
27.11% 20.04 20.17 20.39 20.66 21.01 21.48 22.12 23.10 24.71 27.90
29.29% 15.63 15.73 15.90 16.11 16.38 16.73 17.19 17.86 18.87 20.61
33.99% 7.34 7.41 7.52 7.64 7.80 8.00 8.24 8.58 9.02 9.69
36.18% 3.98 4.02 4.11 4.22 4.34 4.50 4.69 4.94 5.27 5.72

2. Varying Change in Infosys Market Share and Return on Equity

% Change in Infosys Market Share
$48.37 -5% -2% 0% 2% 4% 6% 8% 10%
5.25% 116.04 139.99 157.43 176.16 196.21 217.66 240.60 265.10
8.00% 73.84 90.83 103.16 116.36 130.44 145.48 161.50 178.59
12.13% 48.90 62.01 71.52 81.64 92.48 103.98 116.23 129.26
Return on Equity

15.30% 36.64 47.98 56.17 64.89 74.19 84.07 94.59 105.73

17.28% 30.42 40.84 48.37 56.39 64.91 73.99 83.63 93.88
19.46% 24.41 33.98 40.88 48.23 56.04 64.36 73.19 82.53
26.34% 9.48 16.97 22.37 28.09 34.18 40.61 47.48 54.72
27.11% 8.09 15.39 20.66 26.23 32.17 38.43 45.10 52.16
29.29% 4.42 11.22 16.11 21.30 26.82 32.64 38.84 45.40
33.99% 0.00 3.42 7.64 12.12 16.87 21.89 27.23 32.84
36.18% 0.00 0.28 4.22 8.40 12.84 17.54 22.53 27.78

3. Change in Infosys Market Share vs. Terminal growth rate

%Change in Infosys Market Share
$48.37 -5% -2% 0% 2% 4% 6% 8% 10%
-5% 28.71 38.83 46.13 53.92 62.19 70.99 80.34 90.26
Terminal growth Rate

-3% 29.01 39.19 46.53 54.36 62.68 71.51 80.92 90.90

0% 29.59 39.88 47.29 55.20 63.60 72.53 82.04 92.13
3% 30.42 40.84 48.37 56.39 64.91 73.99 83.63 93.88
6% 31.69 42.33 50.01 58.22 66.93 76.21 86.08 96.56
9% 33.88 44.90 52.87 61.37 70.41 80.03 90.29 101.18
12% 38.57 50.39 58.94 68.10 77.84 88.22 99.29 111.06
15% 55.56 70.32 81.04 92.54 104.82 117.94 131.97 146.92
 Exhibit- DCF Analysis

DCF Analysis
Infosys Technologies LTD.
Valuation Assumptions:
Infosys Market Share % 1997-98 35
Growth Rate of Infosys Market Share 0.0%

Cash Flow Projections

(Unless otherwise specified, all amounts are in US$ M)

Time Period 0 1 2 3 4 5
Year 1999 2000 2001 2002 2003 2004

Market Size 4,300.00 6,613.05 10,170.35 15,641.18 24,054.87 36,994.46

Infosys Market Share (%) 35 35 35 35 35 35

Local revenues (in US$ terms) 135.45 208.31 320.37 492.70 757.73 1,165.33
Y2K Revenues 322.07 495.32 0.00 0.00 0.00 0.00
Other Revenues 1,047.48 1,610.94 3,239.26 4,981.71 7,661.48 11,782.73

Total Revenues 1,505.00 2,314.57 3,559.62 5,474.41 8,419.20 12,948.06

Operating Margin (%) 18.51 18.93 19.37 19.81 20.26 20.72

Operating Profits 278.61 438.25 689.36 1,084.35 1,705.65 2,682.95

Taxes 27.86 43.83 68.94 108.44 170.57 268.30

Net Income 250.75 394.42 620.42 975.91 1,535.08 2,414.65

Depreciation 6.80 9.66 13.72 19.48 27.67 39.31

Working Capital Increases 3.92 5.59 7.96 11.34 16.15 23.00

Capital Expenditures 11.2 15.9 22.6 32.1 45.5 64.7

Free Cash Flows for the Entire Company 242.43 382.59 603.60 951.99 1,501.06 2,366.27

Free Cash InFlows for ADSs 10.47 16.51 26.04 41.06 64.73

Terminal Value in 2004 453.29

Terminal Value in 1999 204.29

ADS Share of TV 5.59

Free Cash Outflows -50.00

Free Cash Flows for ADSs, net -44.41 10.47 16.51 26.04 41.06 64.73

Discounted Cash Flows -44.41 8.93 12.00 16.14 21.70 29.17

Net Present Value 43.53

Value per share (US$) $48.37

Value per ADS (US$) $24.18

 Exhibit- Forecasted Cash Flows

Cash Flow Forecasts

Infosys Technologies LTD.
Assumptions
% of shares held in the form of ADSs 2.74%
Terminal Value Growth Rate 3.00%

Cash Flow Projections

(Unless otherwise specified, all amounts are in US$ M)

Time Period 0 1 2 3 4 5
Year 1999 2000 2001 2002 2003 2004

Market Size 4,300.00 6,613.05 10,170.35 15,641.18 24,054.87 36,994.46

Infosys Market Share (%) 35 35 35 35 35 35

Local revenues (in US$ terms) 135.45 208.31 320.37 492.70 757.73 1,165.33
Y2K Revenues 322.07 495.32 0.00 0.00 0.00 0.00
Other Revenues 1,047.48 1,610.94 3,239.26 4,981.71 7,661.48 11,782.73

Total Revenues 1,505.00 2,314.57 3,559.62 5,474.41 8,419.20 12,948.06

Operating Margin (%) 18.51 18.93 19.37 19.81 20.26 20.72

Operating Profits 278.61 438.25 689.36 1,084.35 1,705.65 2,682.95

Taxes 27.86 43.83 68.94 108.44 170.57 268.30

Net Income 250.75 394.42 620.42 975.91 1,535.08 2,414.65

Depreciation 6.80 9.66 13.72 19.48 27.67 39.31

Working Capital Increases 3.92 5.59 7.96 11.34 16.15 23.00

Capital Expenditures 11.2 15.9 22.6 32.1 45.5 64.7

Free Cash Flows for the Entire Company 242.43 382.59 603.60 951.99 1,501.06 2,366.27