Cognizant Technology Solutions Expects Third Quarter Results to Exceed Expectations.

NEW YORK--(BUSINESS WIRE)--Oct. 13, 1998--Cognizant Technology Solutions Corp. (Nasdaq:CTSH) today announced preliminary financial results for the third quarter ended September 30, 1998 and commented on the outlook for the Company in the 1998 fourth quarter. The Company will report final third quarter results on October 20, 1998.

Revenue, earnings and operating margins all are expected to exceed consensus estimates. Revenue for the third quarter of 1998 is expected to increase by more than 120% from third quarter 1997 revenue of $7.1 million. Earnings per share for the 1998 third quarter are expected to increase more than five-fold from earnings per share of $0.03 in the comparable 1997 quarter and are expected to be at least 40% higher than current analysts' consensus estimates. Operating margins also are expected to exceed expectations.

"Unaffiliated companies that have become customers in the last 18 months have awarded us additional business at a faster rate than we anticipated, which has driven our strong third quarter performance," said Kumar Mahadeva, Chairman and Chief Executive Officer. "We have every indication that these trends will continue during the fourth quarter."

Cognizant Technology Solutions (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 sciences 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 services, as well as Year 2000 and Euro-currency compliance services. CTS core competencies extend across a range of technologies encompassing data warehousing, internet, object-oriented development, client/server and legacy platforms. For more information, visit CTS on the web at http:/www.cts-corp.com.

Certain statements contained herein, including statements regarding the development of the Company's services, markets and future demand for the Company's services and other statements regarding matters that are not historical facts, are forward- looking statements (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include risks and uncertainties; consequently, actual results may differ materially from those expressed or implied thereby. Factors that could cause actual results to differ materially include, but are not limited to, variability of quarterly operating results, reliance on large projects, concentration of revenue, ability to attract and retain professional staff, dependence on key personnel, ability to manage growth effectively, risks associated with rapid technological advances, risks associated with possible acquisitions, risks associated with the Company's strategic partnerships, various project- associated risks, substantial competition, general economic conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors listed from time to time in the Company's filings and reports with the Securities and Exchange Commission.