Wipro Acquires European System on Chip (SoC) Design Firm NewLogic; Acquisition to Establish Wipro's Global Leadership in the Wireless LAN and Bluetooth Space

BANGALORE, India—(BUSINESS WIRE)—Dec. 19, 2005— Wipro Technologies (NYSE: WIT), the global IT Services arm of Wipro Limited, announced today that it has signed a definitive agreement to acquire the Austrian firm NewLogic in an all cash deal. Under the terms of the agreement, Wipro, the world's largest third party R&D services provider, will pay approximately EUR 47 Mn (US $56 Mn) to acquire 100% stake in privately held NewLogic. The consideration includes cash payment on closure of the transaction as well as earn outs on achieving targeted financial conditions over a 3 year period. NewLogic's estimated 2005 revenues is EUR 14Mn.

NewLogic is a leading semiconductor design services company with intellectual property (IP) cores for complex wireless applications like Wireless LAN and Bluetooth. It has an industry leading portfolio of semiconductor IPs and components in the wireless applications space and demonstrated innovative capabilities in the analog and Radio Frequency (RF) design. These capabilities complement Wipro's own portfolio of IP cores and patents in wireless and wireline technologies areas, positioning the combined entity as the global leader in this space.

Wipro gains 120 specialists through this acquisition, strengthening its ability to provide proven semiconductor IP cores and complete System-on-chip solutions with digital, analog mixed signal and RF design services. The acquisition also provides Wipro with access to 25 patent filings and over 20 customers in the product engineering domain. These customers include Agere, Infineon and Philips. Wipro is a leading solutions provider in the semiconductor design services space with more than 1200 design engineers and the acquisition further strengthens this position in the global design services market. Europe currently contributes to 9% of Wipro's revenues for R&D services in embedded products.

"In the product engineering space, ownership of IPs is a key asset for building services revenues. The NewLogic acquisition is a significant step in our plans to be the leader in the Wireless IP and RF technology space. It will position Wipro as a complete SoC solution provider to our customers. The acquisition also helps us consolidate our position as leaders in this space and more particularly provides a solid base for addressing the large market in Continental Europe," said Ramesh Emani, President, Product Engineering Solutions, Wipro Technologies

Wipro will combine its global semiconductor IP portfolio, the analog/mixed signal services and the European SoC design services with NewLogic and create a new business unit under Product Engineering Solutions group.

Hans-Peter Metzler, CEO of NewLogic will head the new business unit and focus on addressing the growing customer needs for innovative SoC solutions.

"This is a synergistic partnership where our clients will benefit from Wipro's broad suite of capabilities and global services delivery. We are excited about expanding NewLogic's market leading IPs and services into Wipro's customer base. Wireless IP is a hot area and we are confident that the new combined entity is well positioned to be the #1 in this space," said Hans-Peter Metzler, CEO, NewLogic.

Commenting on the acquisition, Sudip Nandy, Wipro's Chief Strategy Officer said, "This acquisition is a significant milestone in our strategy towards creating a strong footprint in Europe and enhancing our local delivery capability. We see immediate and considerable value from the NewLogic team through their potential patent portfolio, client base, and complementary skill-sets."

The entire transaction is expected to be closed during the next one month. The closing of the transaction is subject to customary closing conditions and regulatory approvals. We have arranged for conference calls with senior management on Tuesday, December 20, 2005 at 8:00 AM Indian Standard Time (9:30 PM on December 19, 2005 Eastern) to discuss the acquisition. For call-in numbers and further clarifications, contact Jatin Dalal at email id jatin.dalal@wipro.com.

About Wipro Ltd.

Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Wipro is one of the largest product engineering and support service providers worldwide. Wipro provides comprehensive research and development services, IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance services to corporations globally. In Germany, Wipro trades under the name of WITfotech Solutions.

In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. Wipro also has profitable presence in niche market segments of consumer products and lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services for global corporations. Wipro's ADS' are listed on the New York Stock Exchange, and its equity shares are listed in India on the Stock Exchange - Mumbai, and the National Stock Exchange.

For more information, please visit our websites at www.wipro.com, www.wiprocorporate.com and wipro.co.in.

Forward-looking and cautionary statements

Certain statements in this release concerning our future growth prospects and our ability to successfully complete and integrate potential acquisitions are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding our ability to integrate and manage acquired IT professionals, our ability to integrate acquired assets in a cost effective and timely manner, fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, , liability for damages on our service contracts, the success of the companies in which Wipro has made strategic investments, withdrawal of fiscal governmental incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Wipro may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. Wipro does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. For further information, please visit our websites at www.wipro.com, www.wiprocorporate.com and www.wipro.co.in.

Media Contacts
Wipro Technologies (India)
Aravind Madhavan, +91-9880044742

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Fortex Group (India)
Sunanda Sanganeria, +91 9811553623

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Fortex Group (US)
Harjiv Singh, + 1 917 623 7793

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VP Communications (UK)
Julia Vockrodt, +44 208 964 0260

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Investor Contact
Jatin Dalal, 
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