Teaneck, NJ - April 16, 2002 - Cognizant Technology Solutions Corp.a leading application management and e-business solutions provider, today announced financial results for the first quarter ended March 31, 2002.

Revenue for the first quarter increased to $46.5 million, up 7 percent from $43.4 million in the first quarter of 2001. Gross margin and operating margin for the first quarter were 48.0 percent and 19.7 percent, respectively, as compared to 48.5 percent and 19.3 percent, respectively, in the prior year.

Net income for the first quarter increased to $7.1 million, or $0.35 per diluted share, from $5.6 million, or $0.28 per diluted share, in the first quarter of 2001. Net income includes a $0.06 per diluted share benefit from the company's new tax rate of 24.5% resulting from the Company's intent to use its future Indian generated earnings to fund long-term investments for its international expansion strategy (see press release titled "Cognizant Announces International Strategy"). Pro Forma Net income for the first quarter of 2002, using the previous tax rate of 37.4%, would have been $5.9 million, or $0.29 per diluted share.

"The large application management deals we have won over the last year continued to ramp up strongly in the first quarter, and the new deal pipeline remains very strong," said Kumar Mahadeva, Chairman and Chief Executive Officer. "In fact, we are experiencing a new urgency by customers to ramp up their offshore outsourcing commitments. Driven by these new deals, application management revenues increased 10% sequentially and 21% year over year. The sophisticated knowledge transfer and change management capabilities we have developed to rapidly move large volumes of work offshore are proving to be key competitive assets and driving our growth. As a result, we are now even more confident of achieving healthy sequential growth for the balance of the year.";

"We generated over $7 million in cash flow from operations during the first quarter, resulting in approximately $91 million of cash on our balance sheet,"said Gordon Coburn, Chief Financial Officer."Also, DSOs remained industry-leading at 58 days, reflecting our focus on collections and the continued high level of client satisfaction. Additionally, our customer base remains strong and loyal, as approximately 83% of our first quarter revenue came from customers who have utilized our services for more than one year."

Conference Call
Cognizant will host a conference call today, Tuesday, April 16, at 10:00 a.m. (EST) to discuss the Company's quarterly results. To listen to the call please dial 706-645-0156. 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 706-645-9291 and entering "3746167" from two hours after the end of the call until 11:59 p.m. (EST) on April 23, 2002.