TEANECK, N.J., July 18, 2000 - Cognizant Technology Solutions Corp. (Nasdaq: CTSH), a leading e-business and application management solutions provider, today announced financial results for the second quarter ended June 30, 2000.

Revenue for the second quarter of 2000 increased 48 percent to $31.8 million, from $21.5 million in the second quarter of 1999. Revenue increased 84 percent excluding Y2K related revenue from the prior year period. Net income for the quarter ended June 30, 2000 increased 57 percent to $4.0 million, as compared to $2.6 million in the 1999 second quarter. Diluted earnings per share increased 54 percent to $0.20 from $0.13 in the year ago period.

"Our 17 percent sequential revenue increase reflects better than expected growth of our e-business services,'' said Kumar Mahadeva, Chairman and Chief Executive Officer. "This quarter we won an unprecedented 15 new clients, while the size of many projects grew significantly. Additionally, to accommodate our robust pipeline we opened our second development center purely devoted to e-business in Bangalore, India and added 160 experienced engineers to our staff.''

Mahadeva added, "We are enthusiastic about the initial success of our telecom/wireless services group, which has secured its first three customers, and look forward to its continued contribution. In addition, our strategic partnerships such as the e-business alliance with Viant are proving fruitful and have lead to increased visibility and a record pipeline. As a result, we are confident in our ability to exceed top-line analyst projections and to deliver double digit sequential revenue growth, which will further improve year over year comparisons as we go through the remainder of the year.

"Over 95 percent of our revenue base is attributable to traditional companies establishing a new economy presence,'' stated Gordon Coburn, Chief Financial Officer. "Our client relationships continue to be long term in nature and are distinguished by a high degree of customer satisfaction. As a result, our DSOs continued to be very strong at 50 days.''

"Operating margin expanded to 19 percent while the company continued to steadily invest in its future. We increased our sales force and established new regional offices in Dallas and Minneapolis. Additionally, we ramped our R&D efforts to ensure our engineers remained at the forefront of wireless and web-based technologies,'' added Coburn.

Revenue for the six months ended June 30, 2000 increased 40 percent to $58.9 million, from $41.9 million in the first half of 1999. Net income increased 41 percent to $7.5 million in the first half of 2000 as compared to $5.3 million in the prior year period. Diluted earnings per share for the six month period increased 32 percent to $0.37 from $0.28 in the first half of 1999.