Intelligroup Reports Fourth Quarter Financial Results

Edison, NJ (March 11, 2008): Intelligroup Inc., a consulting, business optimization, and outsourcing firm serving global corporations, today reported results for its fourth quarter and year ended December 31, 2007.

FOURTH QUARTER HIGHLIGHTS

Revenue growth: Revenue grew marginally quarter over quarter and 19.6% year over year. Gross Margin: Gross margin improved 1.7 percentage points quarter over quarter and 7.5 percentage points year over year. Operating Margin: Operating margin improved by 2.7 percentage points quarter over quarter and 16.4 percentage points year over year. Utilization rates: Utilization rates improved slightly to 69% in the fourth quarter of 2007 from 68% in the fourth quarter of 2006 but decreased slightly sequentially from 70% for the third quarter of 2007. New Customers: 40 new customers were added globally in the fourth quarter of 2007..

FOURTH QUARTER PERFORMANCE
The Company reported fourth quarter 2007 revenues of $38.3 million, which marks a slight increase from $38.0 million in the third quarter of 2007 and a 19.6% increase from $32.0 million in the fourth quarter of 2006. The Company’s average onsite bill rates increased by 2% in the fourth quarter of 2007 as compared with the third quarter of 2007 and the fourth quarter of 2006, while the Company's average offshore rates were relatively flat in the fourth quarter of 2007 as compared with the third quarter of 2007 and the fourth quarter of 2006. The Company's gross margin increased to 30.8% for the fourth quarter of 2007 as compared with 29.1% in the third quarter of 2007. Due to its focus on effective cost management strategies, the Company's gross margin improved substantially from 23.3% in the fourth quarter of 2006 to 30.8% for the fourth quarter of 2007. The Company reported operating income from continuing operations of $3.1 million, which marks a 49% increase from $2.1 million in the third quarter of 2007 and 219% increase from an operating loss of $2.6 million in the fourth quarter of 2006.

FULL YEAR PERFORMANCE
The Company reported revenue of $145.1 million for the fiscal year 2007 which is a 15.8% increase from revenue of $125.3 million for the fiscal year 2006. The Company reported gross margin of 27.4% for fiscal 2007 which is relatively flat as compared with 27.3% for fiscal year 2006. The Company’s operating performance improved by $6.5 million from an operating loss of $3.3 million in fiscal year 2006 to operating income of $3.2 million in fiscal 2007.

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.

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 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 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 DECEMBER 31.2007 AND 2006 (in thousands except par value)

December 31, 2007 December 31, 2006   Unaudited Audited ASSETS     CURRENT ASSETS     Cash and cash equivalents $ 8,419 $ 12,277 Short-term investments -- 2,227 Accounts receivable, less allowance for doubtful accounts of $1,240 and $991 at December 31, 2007 and 2006, respectively 24,493 20,477 Unbilled services, less allowance for doubtful accounts of $911 and $891 at December 31, 2007 and 2006 11,393 9,464 Deferred tax asset, current portion 589 390 Prepaid expenses and Prepaid Taxes 1,567 957 Prepaid expenses and other current assets 1,965 1,466 Total current assets 48,426 47,258 Property and equipment, net 6,470 5,472 Goodwill and Intangibles 3,034 -- Restricted Cash 4,848 -- Deferred taxes and other assets 2,684 1,813 Total assets $65,462 $54,543 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES     Line of credit borrowings $6,566 $4,959 Accounts payable 3,542 3,078 Accrued payroll and related taxes 11,645 11,301 Accrued expenses and other current liabilities 4,878 4,695 Current portion of deferred revenue 3,345 2,294 Current portion of obligations under capital leases 457 483 Total current liabilities 30,433 26,810 Obligations under capital lease, net of current portion 375 552 Deferred revenue, net of current portion 691 686 Other long-term liabilities 579 101 Total liabilities $32,078 $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 at December 31, 2007 and 2006, respectively, and 42,160 and 41,933 shares issued and outstanding at December 31, 2007 and 2006, respectively 421 419 Additional paid-in capital 71,119 69,702 Accumulated deficit (40,789) (43,753) Accumulated other comprehensive Income 2,633 26 Total shareholders' equity 33,384 26,394 Total liabilities and shareholders' equity $65,462 $54,543

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

TWELVE MONTHS ENDED December 31, THREE MONTHS ENDED December 31,   Unaudited 2007 Audited 2006 Unaudited 2007 Audited 2006 Revenue $145,066 $125,309 $38,321 $32,032 Cost of revenue 105,351 91,104 26,535 24,577 Gross profit 39,715 34,205 11,786 7,455 Selling, general and administrative expenses 34,055 35,031 7,967 9,443 Depreciation and amortization 2,472 2,474 673 645 Total operating expenses 36,527 37,505 8,640 10,088 Operating Gain/(loss) 3,188 (3,300) 3,146 (2,633) Interest income 133 27 89 4 Interest expense (792) (597) (233) (175) Other income (expense), net 1,155 1,300 400 (348) Income / (Loss) before income taxes 3,684 (2,570) 3,402 (3,152) Provision for (benefit of) income taxes 720 1,137 89 (811) Net Income / (Loss) $2,964 $(3,707) $3,313 $(2,341) Basic net gain / ( loss) per share $0.07 $(0.09) $0.08 $(0.06) Diluted net gain / ( loss) per share $0.07 $(0.09) $0.08 $(0.06) Weighted average number of common shares outstanding         - Basic 42,026 40,179 42,109 41,933 - Diluted 42,115 40,179 42,538 41,933 Comprehensive income (loss)         Net Income / (loss) $2,964 $(3,707) $3,313 $(2,341) Other comprehensive income (loss)         Currency translation adjustments 2,607 578 219 1,260 Comprehensive income/ (loss) $5,571 $(3,129) $3,532 $(1,081)