Sasken Q3 FY07 Revenues at Rs 131 crore – up 73% YoY
PAT increases by 71% YoY

Bangalore, January 24, 2007: Sasken Communication Technologies Limited (BSE:532663, NSE:SASKEN), a pioneer in telecom R&D and support outsourcing,today announced its consolidated results according to Indian GAAP for the third quarter ended December 31, 2006.

Quarter ended December 31, 2006
Consolidated revenues: Rs 131.02 crore – up 11% vs Q2 FY07
Consolidated Profit After Tax (PAT): Rs. 11.87 crore – flat vs Q2 FY07
Consolidated EPS: Rs 4.22/- vs Rs 4.24/- in Q2 FY07

Nine months ended December 31, 2006
Consolidated Revenues: Rs 339.69 crore – increases 48% vs same period FY06
Consolidated PAT: Rs 32.41 crore – increases 95% vs same period FY06
Consolidated EPS: Rs 11.56/-

Key Financial Highlights for Q3 FY07
• Average collection period stands at 72 days
• Revenue contribution from the Top five customers stood at 81% and from Top 10 customers at 89%
• Cash and cash equivalents stand at Rs. 42.5 crore as on December 31, 2006, compared to Rs. 41.2 crore as on September 30, 2006
• The consolidated Forex-hedged position on December 31, 2006 was USD 56.1 Million
• The subsidiary in Mexico has turned profitable for the cumulative period of nine months ending December 31, 2006

Key Business Highlights for Q3 FY07
• A net total of 139 people were added this quarter (Gross Adds of 350), taking the total employee strength to 3,512 as on December 31, 2006
• Utilization on the services side stands at 73.6%
• EBITDA Margins on the services side were at 22.9%
• One new Design-In and one new Design-Win on the products side
• 11 new customers added during the quarter; a total of 76 active customers during the year

Commenting on the performance, Rajiv Mody, Chairman & CEO, Sasken said, “The Sasken Group has had a strong year so far. For the first nine months of this year, our revenues have grown 48% and net profits have grown 95%. Our services business has delivered 57% growth rate in revenues YTD. All industry trends point towards this growth momentum sustaining and continuing in a healthy manner. Our services efficiencies are improving and we held our EBITDA margins at 22.9% in Q3, despite the adverse impact of the currency.

“The products business is working towards achieving set milestones. We had a Japanese Tier 1 handset vendor shipping a new phone model with our multimedia software. We also signed up a Taiwanese semiconductor manufacturer for our Wireless modem sub-system product. More handset shipments from other Tier 1 customers are in the pipeline containing our multimedia and modem products.

Our application framework product is fully integrated with the Texas Instruments (TI) Locosto chipset, which we had announced earlier in the quarter. We are also focused on getting a sign-up for this product from a handset customer, and working towards achieving that milestone in Q4,” he added.

“As we go towards the next orbit of growth, we are cognizant of the need to have high quality management expertise to steer us there. With this perspective, we have inducted some senior people into our management team. We have a new head for Worldwide Sales, an expanded Sales team and a new business CTO, all of whom come from global communication majors,” Rajiv added.

The detailed financial results are given in an Annexure to this Media Release. A fact sheet providing the operating metrics for the company and a presentation for analysts can be downloaded from the investor section of www.sasken.com.

Conference Call details
A conference call is planned at 1030 hrs IST on Thursday, January 25, 2007, where the senior management of Sasken led by Chairman and CEO, Rajiv Mody, will comment on the company’s performance for the third quarter and nine months ended December 31, 2006, and respond to queries from participants.To participate in the conference call, please dial the numbers given below ten minutes ahead of the schedule. The transcript of this conference call will be available within 72 working hours in the investor section of the company website, www.sasken.com. Details of the conference call are also available on www.sasken.com.

About Sasken Communication Technologies Ltd.
Sasken is an embedded telecom solutions company that helps businesses across the telecom value chain accelerate product development life cycles.

Sasken offers a hybrid model of services and products, and works with Network OEMs, semiconductor vendors, Terminal Devices OEMs and operators across the world. Global Fortune 500, Tier 1 companies in each of these segments are part of Sasken's customer profile. Established in 1989, Sasken employs over 3,500 people at its offices in India, China, Finland, Germany, Japan, Mexico, Sweden, UK and the U.S. Sasken has consistently been rated as a Best Employer in all leading industry surveys.