KPIT Cummins Infosystems Ltd (BSE: 532400; NSE: KPIT), a global IT consulting organisation, announced that its Board of Directors will meet on November 8, 2006 to consider issue of bonus shares and stock split.

After considering the proposal of issuing 1:1 bonus shares and simultaneous stock split from Rs. 5 per share to Rs. 2 per share, the Board of Directors will make a suitable recommendation for approval at a shareholders meeting to be held subsequently.

Subject to the approval of the shareholders, the Company will issue an additional equity share for each share held by the shareholders, after capitalizing a part of its general reserves. At present, the Company's share capital is approximately 5% of its reserves and surplus. Simultaneously with the bonus issue, the Company will split the par value of shares from Rs. 5/- per share to Rs. 2/- per share. The stock split is also subject to the approval of the shareholders. Subsequent to the corporate actions mentioned above, a shareholder holding 1 share of Rs. 5/- will get 5 shares of Rs. 2/- each.

The Company currently has 14,892,797 shares outstanding. Following the bonus issue and the stock split, the number of shares will become 74,463,985. Record date for the bonus issue and stock split will be announced following the shareholders meeting.

KPIT Cummins announced its results for the 2 nd Quarter of FY07 on 19th October 2006. Net profit during the quarter increased by 61.98% over the previous year to Rs. 123.48 Million. Offshore revenues have grown by 101.61% over the previous year. Total revenues for the quarter have grown by 46.78% to Rs. 1140.26 Million.

Mr. Ravi Pandit, Chairman and Group CEO, KPIT Cummins said , "We are proposing an issue of bonus shares and a stock split to be considered by our Board of Directors. Considering the potential for growth in the immediate future, we believe this is an appropriate time to issue bonus shares. The stock split to Rs. 2 per share will also bring the denomination of our shares in line with that of the leading companies in India. Simultaneous issue of bonus and stock split will help us increase the liquidity of our stock and facilitate greater participation of the investing community."

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KPIT Cummins Infosystems Ltd ( www.kpitcummins.com) is a global IT consulting and engineering partner of first choice for its customers across the globe. With a major presence in IT for Manufacturing, Advanced Technology Solutions ( Automotive and Semiconductor Solutions) and Diversified Financial Services verticals, the company has grown at a fast pace of above 65% CAGR over the past three years. KPIT Cummins endeavours to be a leader in 3 rd party solutions and services for Automotive Electronics & Semiconductor industries.

Citigroup-IMA recently identified KPIT Cummins among the top 100 transitioning medium enterprises in India (June'06). International Association of Outsourcing Professionals has ranked KPIT Cummins 8 th among the 35 rising stars in global outsourcing (Feb'06).