Intelligroup Securities to be Delisted from Nasdaq Market

EDISON, N.J., Oct. 20 /PRNewswire-FirstCall/ -- Intelligroup, Inc., (Nasdaq: ITIGE - News), a global provider of strategic IT outsourcing services, has been notified by Nasdaq that the Company's common stock will be delisted from the Nasdaq Stock Market effective with the open of business on Thursday, October 21, 2004. The Company is evaluating whether to appeal the decision to the Nasdaq Listing and Hearing Review Council, however such appeal will not stay the delisting action.

Because the delisting of the Company's securities from Nasdaq is primarily due to the Company's failure to timely meet its reporting obligations in accordance with Marketplace Rule 4310(c)(14), the Company's securities are not immediately eligible for quotation on the OTC Bulletin Board (the "OTCBB") or the Pink Sheets Electronic Quotation Service (the "Pink Sheets"). The Company is exploring the possibility of coordinating with one or more market makers to apply to quote its securities on the Pink Sheets, which the Company believes could provide a market for its securities. The Company cannot guarantee that an application to quote its securities on the Pink Sheets will be approved and that its securities will be quoted on the Pink Sheets. Information regarding the Pink Sheets Electronic Quotation Service is available at http://www.pinksheets.com.

"While we are disappointed with the Nasdaq's decision, we will continue our efforts to complete the previously announced restatements and become current with our periodic filings as soon as possible." said Arjun Valluri, Chief Executive Officer of Intelligroup. "In the meantime, we will continue to focus on growing our business following the recent equity infusion and continuing to provide value to our customers."