Chrysalis Invests in MphasiS BFL

June 15, 2001

The Directors of MphasiS BFL Limited have today, following the board meeting, recommended to the shareholders the acceptance of Chrysalis' offer to invest Rs.45 crores at Rs. 350/- per share. This represents a dilution of approximately 7%.

The offer price represents a premium of approximately 75% over current levels and of approximately 12% over the prescribed SEBI minimum formulae for a dilution of approximately 7%.

Commenting on the decision Mr. Jaithirth "Jerry" Rao chairman of MphasiS BFL said, " We are delighted to have an investor of the caliber of Chrysalis with us. We take it as a major vote of confidence in our business model and future prospects. We will be using the funds not only to strengthen our cash and working capital position but also for capital expenditure in MphasiS BPO - our subsidiary that is focused on Help Desks and Call Centers."

"We are particularly happy that Chrysalis has placed this confidence in us at a time when the external economic environment is tough. We look forward to a long and mutually rewarding association with them," he added.

Mr Rao also informed that MphasiS BFL has invited Mr Ashish Dhawan of Chrysalis to join the MphasiS BFL Board and said, "We are sure that he will make a valuable contribution".

Mr. Ashish Dhawan, Director of Chrysalis added: " We are particularly happy with the prospects of MphasiS BFL among the publicly listed software companies in India. We believe they have a strong business model and we like their management philosophy. We have talked to their customers who have the highest respect in the capabilities of MphasiS BFL. This in our mind is a key success factor for any successful software company. We are planning to buy additional shares from the market within the necessary guidelines. We look forward to partnering the company and contributing to its growth."