Teaneck, NJ – July 26, 2004 – Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading provider of IT services, today announced its financial results for the second quarter ended June 30, 2004.

Highlights for the second quarter include:

• Quarterly revenue increased to $138.7 million, up 16% sequentially and 59% from the year ago quarter
• Operating margin of 20.0% compared to 19.8% sequentially and 19.6% in the year-ago period
• Diluted quarterly EPS of $0.17

Revenue for the second quarter increased to $138.7 million, up 16% from $119.7 million in the first quarter of 2004, and up 59% from $87.4 million in the second quarter of 2003. Net income for the second quarter increased to $23.8 million, or $0.17 per diluted share compared to $19.8 million, or $0.14 per diluted share (on a split-adjusted basis) in the first quarter of 2004. Operating margin for the quarter increased to 20.0%, compared to 19.8% in the first quarter of 2004 and 19.6% in the second quarter of 2003.

"The second quarter was exceptionally strong as we reported substantially better than expected results with solid growth across all of our key verticals," stated Lakshmi Narayanan, President and CEO of Cognizant. "Application development services continued to show strong momentum, growing 77% year-over-year as a result of Cognizant’s success at winning complex development projects. Our focus on building long-term customer relationships has led to increased client penetration and opportunities to cross-sell our services to existing and new strategic customers, enabling Cognizant to grow faster than any of our peers in the industry. Additionally, approximately 90% of revenue came from clients with whom we have worked for at least one year. We also continue to strengthen our position as a highly differentiated provider of offshore outsourcing services as reflected in our ongoing ability to broaden and deepen our relationships with existing clients while maintaining a high win-rate against our competitors."

2004 Outlook
Based on current visibility, the Company is now providing the following updated guidance

• 3Q 2004 expected revenue of at least $150.0 million
• 3Q 2004 expected diluted EPS of $0.17
• FY 2004 expected revenue of at least $565.0 million
• FY 2004 expected diluted EPS of $0.66
• 3Q and FY 2004 expected operating margin to remain in the 19% to 20% range

"In addition to our strong revenue and margin performance during the quarter, we are particularly pleased with our cash flow metrics, including a decline in DSO to 59 days and generation of over $30 million of cash from operations," said Gordon Coburn, Chief Financial Officer of Cognizant. "Based on the strength of our new business pipeline and the continuing interest from prospective customers, we remain very optimistic about our growth opportunities for the remainder of 2004 and believe that Cognizant is well-positioned to benefit from its leadership position and the ongoing momentum in the offshore outsourcing market."

Conference Call
Cognizant will host a conference call on July 26th, at 10:00 a.m. (ET) to discuss the Company’s quarterly results. To listen to the call please dial (888) 652-6834 domestic and (706) 679-3288 internationally. 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 (800) 642-1687 for domestic callers and (706) 645-9291 for international callers and entering "8657040" from two hours after the end of the call until 11:59 p.m. (ET) on August 2, 2004.

About Cognizant
Cognizant Technology Solutions Corporation (Nasdaq: CTSH) is a leading provider of IT services. Focused on delivering strategic information technology solutions that address the complex business needs of its clients, Cognizant provides applications management, development, integration, and re-engineering, infrastructure management, business process outsourcing, and a number of related services such as enterprise consulting, technology architecture, program management and change management through its onsite/offshore outsourcing model.

Cognizant's more than 12,000 employees are committed to partnerships that sustain long-term, proven value for customers by delivering high-quality, cost-effective solutions through its development centers in India and Ireland, and onsite client teams. Cognizant maintains P-CMM and SEI-CMM Level 5 assessments from an independent third-party assessor and was recently ranked #1 in Forbes' Hot Shots 200 Up & Comers and ranked as the top information technology company in BusinessWeek's Hot Growth Companies. Further information about Cognizant can be found at http://www.cognizant.com.