Intelligroup recorded a foreign exchange loss of $1.4 million in Q4 ’08 reflecting the impact of the Company’s hedging positions on inter-company balances. This compares to a net foreign exchange gain of $0.1 million in Q4 ’07 and a net foreign exchange loss of $0.7 million in Q3 ’08. While hedging remains an important long-term risk management practice and an integral component of onsite-offshore businesses, fluctuations in foreign exchange markets may continue to result in volatility in operating results.

Q4 ’08 net income was $1.0 million, or $0.02 per diluted share, compared to Q4 ’07 net income of $2.9 million, or $0.07 per diluted share, and Q3 ’08 net income of $2.7 million, or $0.06 per share.

Intelligroup generated cash from operating activities of $5.9 million in Q4 ’08 and $13.2 million for the full year 2008. The company ended the year with $11.1 million of cash, cash equivalents and short-term investments net of line of credit borrowings, an increase of $9.3 million from year-end 2007.

Alok Bajpai, CFO, added, “The strength of our balance sheet and cash flow positions us well to meet the near-term challenges facing us during these formidable economic times. Operationally, we continue to focus our efforts in key areas such as human resource management to improve utilization and per-employee revenues, as well as on continuing efforts to align our SG&A and capital expenditures with revenues.

“We initiated our share repurchase program during the later part of the quarter and completed purchase of 79,300 shares at an average price of $1.61 per share in Q4 ‘08. Subject to our cash flows and liquidity comfort and the price performance of the shares, we expect to continue to repurchase shares in 2009 as we view accretive share repurchases as an excellent means to enhance shareholder value over the long term. To date in 2009, we have purchased an additional 355,350 shares at an average cost of $1.50 per share, bringing total purchases under the program to approximately 1% of our outstanding shares.”

About Intelligroup, Inc.
Intelligroup is an ERP-focused enterprise applications systems integrator providing consulting, implementation, testing, application management and other IT services for global corporations. The Company possesses deep expertise and proprietary tools in industry-specific enterprise solutions and has been recognized by clients, partners including SAP and Oracle and IT industry analysts for consistently exceeding expectations. Intelligroup won the 2007 global annual Pinnacle Award from SAP, was a finalist in the Oracle 2007 Titan Awards, and was recognized by NASSCOM as a Top 100 Innovator. Intelligroup’s global service delivery model combines onsite teams and offshore development capabilities to deliver solutions that accelerate results, reduce costs and generate meaningful ROI for clients. Intelligroup clients include Varian Medical, Reckitt Benckiser, Royal Greenland, SAP, Magellan, Hershey’s, Eastman Chemical and Hitachi. For more information please visit www.intelligroup.com.

Safe Harbor for Forwarding-looking Statements:
Certain statements contained herein, including statements regarding the development of services and markets and future demand for services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995), including future financial performance and the effect of share repurchase by the company. Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, variability of quarterly operating results, continued uncertainty of the IT market and revenues derived from application management business, uncertainty in revenues for traditional professional services offerings, loss of one or more significant customers, reliance on large projects, concentration of revenue, volatility caused by fluctuations in the currency markets, unanticipated costs associated with continued litigation, ability to attract and retain professional staff, dependence on key personnel, ability to manage growth effectively, risks associated with strategic partnerships, various project-associated risks, including termination with short notice, substantial competition, general economic conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors detailed under the caption "Risk Factors" in Intelligroup's annual report on Form 10-K for the period ended December 31, 2007. Intelligroup disclaims any intention or obligation to update forward looking statements as a result of developments occurring after the date of this press release.

Intelligroup, the Intelligroup logo and ‘Creating the Intelligent Enterprise’, are trade-marks of the Company. 4Sight, 4Sight Plus, PowerUp Services, HotPac Analyzer and Uptimizer are service marks of Intelligroup.

All other trademarks and company names mentioned are the property of their respective owners