Teaneck, NJ - February 6, 2001 - Cognizant Technology Solutions Corp. (Nasdaq: CTSH), a leading e-business and application management solutions provider, today announced financial results for the fourth quarter and year ended December 31, 2000.

Revenue for the fourth quarter increased to $41.1 million, up 70 percent from $24.1 million in the fourth quarter of 1999. Revenue increased 84 percent excluding Y2K related revenue from the prior year period. E-business revenues grew over 600% to 36% of total revenues while application management revenues increased 70%. Net income for the quarter ended December 31, 2000 increased 77 percent to $5.4 million, as compared to $3.1 million in the 1999 fourth quarter. Diluted earnings per share increased 80 percent to $0.27 from $0.15 in the year ago period.

"Cognizant continued to accelerate new customer wins in 2000, with 16 during the fourth quarter alone," said Kumar Mahadeva, Chairman and Chief Executive Officer. "Moreover, we further strengthened our relationships with existing clients by partnering with them to develop value-added business solutions. As a result, we are entering the new year with a record number of blue chip clients, many of whom we expect will substantially expand their relationship with Cognizant in 2001."

"In an uncertain economic environment, large companies are looking for partners who can quickly deliver realizable ROI. Cognizant's deep technology capabilities, process driven project management and on-site/offshore delivery produce fast, high quality, cost effective solutions -- attractive to any enterprise. Cognizant has the ability to both develop and deploy large scale systems that integrate e-Business with Legacy to substantially improve business productivity, and to mange these systems efficiently to deliver considerable savings in IT spending," added Mahadeva.

"This quarter marks our 17th consecutive quarter of sequential revenue growth," stated Gordon Coburn, Chief Financial Officer. "We continued to execute on all fronts as our operating margin expanded, DSOs remained strong at 50 days and we generated approximately $13 million of cash from operations in the quarter. Over 95 percent of our revenue base continues to be attributable to traditional companies establishing a new economy presence."

Revenue for the year ended December 31, 2000 increased 54 percent to $137.0 million, from $88.9 million in the prior year. Revenue for the year increased 82 percent excluding Y2K revenue. Net income increased 57 percent to $17.7 million as compared to $11.2 million in 1999. Diluted earnings per share for the year 2000 increased 50 percent to $0.87 from $0.58 in 1999.

Conference Call

Cognizant Technology Solutions will host a conference call today at 10:00 a.m. (eastern) to discuss the Company's quarterly results. To listen to the call please dial 212-896-6107. The call will also be broadcast live via the Internet at Cognizant's web site, www.cognizant.com. Please go to the web site at least fifteen minutes prior to the call to register, download and install any necessary audio software. A replay will be made available on the web site at www.cognizant.com or by calling 858-812-6440 and entering "17492913" from two hours after the end of the call until 11:59 p.m. (EST) on February 13, 2001.