Intelligroup Reports First Quarter Financial Results

Edison, NJ, May 14, 2007 - Intelligroup Inc., a consulting, business optimization, and outsourcing firm serving global corporations, today reported financial results for its first quarter 2007. Such results are included at the end of this release and in the periodic report on Form 10-Q for the period ended March 31, 2007, as filed with the United States Securities and Exchange Commission.

First Quarter Highlights:

Revenue: Year over Year revenue grew 12.1%; Quarter over Quarter revenue grew by a moderate 2% Utilization rates: Utilization rates increased to 69% in the first quarter of 2007 from 68% for the fourth quarter of 2006 and 66% for the first quarter of 2006. New Customers: 30 new customers were added globally in the first quarter.

First Quarter performance:
The Company reported revenues in the first quarter of 2007 of $32.7 million, which marks a 2% increase from $32.0 million in the fourth quarter of 2006 and a 12.1% increase from $29.1 million in the first quarter of 2006. The Company’s average bill rates were relatively flat in the first quarter of 2007 as compared with the fourth quarter of 2006 and the first quarter of 2006. The Company reported gross margin of 19.8% for the first quarter of 2007 which marks a decrease from 23.3% for the fourth quarter of 2006 and 27.2% for the first quarter of 2006. The Company reported an operating loss of $3.0 million in the first quarter of 2007 which marks an increase from $2.6 million in the fourth quarter of 2006 and $1.8 million in the first quarter of 2006.

About Intelligroup
Intelligroup is a vertically-led ERP focused life cycle management partner serving global corporations as well as public sector clients. Its proven Global delivery model has enabled customers to accelerate results and reduce costs significantly. With deep expertise in industry-specific enterprise solutions, Intelligroup has earned a reputation for consistently exceeding client expectations. Intelligroup develops implements and supports IT solutions for some of the largest U.S. school systems and global corporations including GE, Hershey, Abbott Labs, Eastman Chemical, Hitachi, and Kimball International.

For more information please visit our website at http://www.intelligroup.com

Safe Harbor Statement
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).

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, 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 SEC filings. 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 and the Intelligroup logo are registered trademarks and 'Creating the Intelligent Enterprise', 4Sight, 4Sight Plus, ASPPlus, myADVISOR, ASPPlus Power Upgrade Services and Uptimizer are service marks of Intelligroup in the U.S. and other countries. All other trademarks and company names mentioned are the property of their respective owners.

INTELLIGROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands except par value)

Assets March 31, 2007 December 31, 2006 CURRENT ASSETS     Cash and cash equivalents $8,328 $12,277 Short-term investments 3,140 2,227 Accounts receivable, less allowance for doubtful accounts of $1,066 and $991 at March 31, 2007 and December 31, 2006, respectively 18,439 20,477 Unbilled services, less allowance for doubtful accounts of $891 at March 31, 2007 and December 31, 2006 12,124 9,464 Prepaid expenses 1,098 957 Prepaid taxes -- 170 Other current assets 1,233 1,296 Total current assets 44,362 46,868 Property and equipment, net 5,411 5,472 Deferred taxes and other assets 2,740 2,203 Total assets $52,513 $54,543 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT Liabilities     Line of credit borrowings $4,946 $4,959 Accounts payable 3,984 3,078 Accrued payroll and related taxes 11,388 11,301 Accrued expenses and other current liabilities 5,265 4,695 Deferred revenue 1,796 2,294 Income taxes payable 122 -- Current portion of obligations under capital lease 410 483 Total current liabilities 27,911 26,810 Obligations under capital leases, net of current portion 566 552 Deferred revenue, net of current portion 660 686 Other long-term liabilities 63 101 Total liabilities $29,200 $28,149 Commitments and contingencies Shareholders' Equity     Preferred stock, $.01 par value, 5,000 shares authorized, none issued or outstanding -- -- Common stock, $.01 par value, 50,000 shares authorized, 41,933 shares issued and outstanding at March 31, 2007 and December 31, 2006 419 419 Additional paid-in capital 70,028 69,702 Accumulated deficit (47,547) (43,753) Accumulated other comprehensive loss 413 26 Total shareholders' equity 23,313 26,394 Total liabilities and shareholders' equity $52,513 $54,543

INTELLIGROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands except per share data)

THREE MONTHS ENDED March 31,   2007 2006 Revenue $32,700 29,171 Cost of revenue 26,240 21,247 Gross profit 6,461 7,924 Selling, general and administrative expenses 8,911 9,150 Depreciation and amortization 598 579 Total operating expenses 9,510 9,729 Operating loss (3,049) (1,805) Interest expense, net (192) (104) Other income (expense) 62 (24) Loss before income tax provision (3,179) (1,933) Provision for income taxes 615 42 Net loss $(3,793) $(1,975) Loss per share:     Basic net loss per share $(0.09) $0.06 Weighted average number of common shares outstanding - basic 41,933 35,176 Diluted net loss per share $(0.09) $(0.06) Weighted average number of common shares outstanding - diluted 41,933 35,176