Cognizant Technology Solutions Achieves SEI-CMM Level IV Certification.

NEW YORK--(BUSINESS WIRE)--Dec. 28, 1998--Cognizant Technology Solutions Corporation (CTS)(NASDAQ:CTSH), an applications outsourcer providing software development and maintenance services to Fortune 1000 companies, today announced that it has been assessed at Level 4 of the Capability Maturity Model (CMM) of the Software Engineering Institute (SEI), at Carnegie Mellon University, in Pittsburgh, PA, USA. This assessment for the Software Capability Maturity Model (SW-CMM) was carried out by Quality Registrars of KPMG.

The SW-CMM is widely regarded as the best means to measure the quality and maturity of an organization's software development and maintenance processes. The Level 4 SW-CMM assessment signifies that CTS has a well defined, measured process for developing and maintaining software solutions that is integrated into its management processes. Only 18 organizations worldwide had achieved Level 4 capability maturity, as reported to the SEI, as of September 1998. The evaluation covered all of CTS's offerings and functional areas at its India-based development centers in Chennai and Calcutta.

"We heard and saw instances of how CTS is delighting its customers," said Judy Bamberger, Process Maturity and Quality Consultant, and the Lead Assessor for KPMG. "This is attributed to the vision and leadership of the senior management team, the professional and technical excellence of the associates and the solid quality management system that guides the day-to-day work of everyone at CTS. Achieving 'Managed' Level 4 in the SW-CMM is just another milestone for CTS in their journey to remain a world-class software product and services company."

"Whether it is ISO 9000 certification or SW-CMM Level 4, CTS professionals have always impressed me with their knowledge, competency, and willingness to improve and excel," added Pradeep Udhas, Partner, KPMG Quality Registrar. "CTS has become an institution with its own culture and identity. This has put it in the top ranks in a short span of just four years."

"This is one of the most significant milestones CTS has reached in its continuous endeavor to improve quality for our customers," said Kumar Mahadeva, Chairman and Chief Executive Officer. "It is extremely gratifying for us to join the select band of organizations worldwide that are at this level of capability maturity. This is an important competitive advantage for CTS, and puts us ahead of most companies in our industry."

About the Software Engineering Institute

The Software Engineering Institute (SEI) is a federally funded research and development center established in 1984 by the US Department of Defense with a broad charter to address the transition of software engineering technology. The SEI is an integral component of Carnegie Mellon University and is sponsored by the Office of the Under Secretary of Defense for Acquisition and Technology (OUSD (A&T)).

About the Capability Maturity Model

The Software Capability Maturity Model(R) (SW-CMM(R)) is a model for judging the maturity of the software processes of an organization and for identifying the key practices that are required to increase the maturity of these processes.

SW-CMM(R) and CMM(R) are registered in the US Patent and Trademark Office.

For information about the number of companies worldwide that have attained a Level III SW-CMM and the number that have attained a Level IV SW-CMM, see our Maturity Profile at this URL: http://www.sei.cmu.edu/sema/profile.html

About Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation (CTS) delivers high-quality, cost-effective, full life cycle solutions to complex software development and maintenance problems. Using an extraordinary pool of over 1,400 computer science and engineering professionals located at client sites and at seven development centers in India, the company's offerings include application development, maintenance and re-engineering, as well as year 2000 and Euro currency compliance services. CTS core competencies extend across a range of technologies, encompassing data warehousing, web-enabling, Internet, object-oriented development, client/server and legacy platforms. For more information, visit CTS on the web at http://www.cts-corp.com.

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Cognizant believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. These statements may involve risks and uncertainties that could cause actual results to differ materially from the expected results. Such risks include, but are not limited to, the risk factors described in Cognizant's Registration Statement on Form S-1 and in other reports and periodic filings made from time to time with the Securities and Exchange Commission.