Teaneck, NJ - April 17, 2001 - Cognizant Technology Solutions Corp. (Nasdaq: CTSH), a leading e-business and application management solutions provider, today announced financial results for the first quarter ended March 31, 2001.

Revenue for the first quarter increased to $43.4 million, up 60 percent from $27.1 million in the first quarter of 2000. Net income for the quarter ended March 31, 2001 increased 61 percent to $5.6 million, as compared to $3.5 million in the 2000 first quarter. Diluted earnings per share increased 65 percent to $0.28 from $0.17 in the year ago period.

"Cognizant continued to achieve strong financial results despite a harsh environment for IT services," said Kumar Mahadeva, Chairman and Chief Executive Officer. "Our ability to prosper in this market is a direct result of Cognizant's proven onsite/offshore solutions delivery model. As large enterprises seek realizable ROI on their technology spending, they are more frequently exploring offshore solutions. Additionally, as cost containment moves to the forefront, we've seen increased interest in application management services. As a result of this shift in demand, application management revenue increased to 50% of revenue, and now accounts for a large portion of our opportunity pipeline."

Mahadeva added, "We entered 2001 with a record number of new blue chip clients and continue to build upon these relationships. With our track record of expanding existing client relationships, and our continual investment in R&D spending and sales and marketing, we remain confident in our ability to navigate through the IT slowdown and continue our strong financial performance."

"Strong execution has been a hallmark of Cognizant in meeting both client and Wall Street expectations, as evidenced by these results -- our 18th consecutive quarter of sequential revenue growth," stated Gordon Coburn, Chief Financial Officer. "We are especially pleased by our continued high level of recurring revenue with approximately 80 percent of first quarter revenue coming from customers who had been with us for more than a year.",

"Despite an environment that is driving many to closely monitor their cash outflows, our clients continue to highly rate our performance and delivery as measured by our continuously strong DSO. At approximately 50 days we remain among the best in the industry," added Coburn.