Aftek ESG announce intention to form a Joint Venture

Mumbai, March 1, 2007: Aftek Ltd and major European software and systems company ESG Electroniksystem-und Logistik GmbH today announced their intention to form a joint venture to exploit opportunities in Europe and India.

"We had signed a strategic agreement with Aftek a few months ago. This helped us in jointly undertaking projects for some of our automotive clients like Volkswagen and BMW. We have now decided to now strengthen this relationship, in order to look at broader set of opportunities" Gerhard Schempp, CEO, ESG said.

Ranjit Dhuru, CMD Aftek said, "We already have a strong presence in Europe through Arexera Information Techologies, our Germany-based 100% subsidiary. The strengthening of the relationship with ESG will help us deliver quality software services to its list of marquee clients."

While details of the joint venture including ownership pattern and equity structure etc. are being worked out, it will essentially look at three different market opportunities. First is the possibility of offshoring work to India for ESG's clients in the automotive sector. Second is helping Aftek spread its presence across Europe, using ESG's reach, market penetration and relationships. Thirdly, the JV will look at marketing ESG's expertise in the Defence, Aerospace, Public Sector and Logistics market segments to clients in India.

"It is a unique business model that goes beyond just the traditional offshoring model," Schempp said. "The partnership with Aftek will give the first mover advantage and allow us to extend our competitive advantage to provide software solutions and services in a globalized world. It will also allow us to market our cutting edge software products to the Indian defence and aerospace industry which is being rapidly modernized," he said.

Wolfgang Sczygiol, Member of Senior Management, ESG said "India is spending over $10 billion in inducting new aircraft, helicopters and other air defence systems. Given our long experience of working at the frontiers of aerospace and air defence industry coupled with Aftek's local expertise and implementation skills, I think we are ideally suited to exploit this opportunity."

About ESG

Based out of Munich and with a turnover of 198 million Euro, ESG provides consulting, System Development, Logistics, Training and IT Services for a range of industries from Aviation, Naval Systems, Military Logistics, IT and Communication, Automotive and Industrial Goods. ESG's investors include European Aeronautic Defence and Space Company, Thales Group and Rohde and Schwarz Group.

About Aftek

Headquartered in Mumbai, India, Aftek is a software services company with expertise in embedded systems, enterprise and wireless applications and enterprise business applications.