Intelligroup Announces SEC Investigation and Provides Update on Financial Reporting

EDISON, N.J., February 3, 2005/PRNewswire-FirstCall/ -- Intelligroup, Inc., a global provider of strategic IT outsourcing services, today provided an update regarding the status of its financial reporting and further announced the commencement of a formal investigation by the Securities Exchange Commission (“SEC”).

As previously disclosed, Intelligroup has been contacted by the SEC regarding Intelligroup’s intent to restate certain financial statements. On January 28, 2005, Intelligroup received notice that the SEC has commenced a formal investigation into these issues. Intelligroup has and will continue to cooperate with the SEC in this regard.

Also, as previously announced on September 24, 2004, Intelligroup intends to restate its financial statements for the years ending December 31, 2001, 2002 and 2003 and for the quarter ended March 31, 2004. In connection with the expected restatement, Intelligroup has engaged its current independent registered accounting firm to re-audit the financial statements subject to the restatement. Intelligroup intends to report its audited, restated financial results as soon as possible following the conclusion of the re-audit. Notwithstanding, we expect to have preliminary, unaudited financial results for the quarters ending June 30, 2004, September 30, 2004 and December 31, 2004 in the near future and intend to report certain financial metrics, such as revenue and net income, in relation to these periods following the finalization of such results.