iGATE Corporation to Divest its Professional Services Business

PITTSBURGH, Feb. 26 /PRNewswire-FirstCall/ -- iGATE Corporation
(Nasdaq: IGTE), a leading integrated Technology and Operations provider
("iGATE"), today announced that its Board of Directors, after a review of its
strategic options, has decided to divest its Professional Services business.
The divestiture will occur through a sale of the business or through a
tax-free spin-off of the business to iGATE shareholders. iGATE has retained
Credit Suisse Securities (USA) LLC to assist with the divestiture.
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Commenting on the divestiture, Sunil Wadhwani and Ashok Trivedi,
Co-Founders and Co-Chairmen of iGATE, stated, "This separation is a logical
next step for the Company. Our Board has reviewed the divestiture and
believes it will benefit our shareholders, employees and customers. Our
Global Solutions and Professional Services businesses operate in different
markets with markedly different business models. The divestiture will better
position each business to benefit from their unique business and growth
opportunities. In addition, the shareholders of iGATE will benefit from the
increased clarity of being a focused offshore services company. The demand for
offshore IT and BPO services continues to grow at a rapid rate, and we expect
iGATE to be a strong player in the industry."
In accordance with generally accepted accounting principles (GAAP), the
company's historical and future financial results will now reflect the
Professional Services business as discontinued operations, effective beginning
as of January 1, 2008.
About iGATE Corporation
Pittsburgh, Pennsylvania-based iGATE Corporation (Nasdaq: IGTE) is the
first fully integrated technology and operations firm with a global service
model. iGATE Corporation, through its offshore subsidiary, iGATE Global
Solutions Ltd., enables clients to optimize their business through a
combination of process investment strategies, technology leverage and business
process outsourcing and provisioning. Services include consulting, enterprise
data management and data warehousing, business intelligence and analytics,
design, development, systems integration, package evaluation, and
implementation, re-engineering and maintenance. iGATE Corporation also offers
IT Professional Services in the areas of packaged application implementation,
custom development, web services and business intelligence. The Company
services more than 300 clients across five continents. Clients rely on iGATE
for high quality service, responsiveness, and cost-effective global reach.
More information about iGATE is available at http://www.igatecorp.com.
Forward-Looking Statements
Some of the statements contained in this news release that are not
historical facts are forward-looking statements. These forward-looking
statements include the Company's financial, growth and liquidity projections
as well as statements concerning the Company's plans, strategies, intentions
and beliefs concerning business cash flows, costs and the markets in which it
operates and the proposed divestiture of its Professional Services Business.
Without limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects," "intends" and similar expressions are intended to identify certain
forward-looking statements. These statements are based on information
currently available to the Company and it assumes no obligation to update the
forward-looking statements as circumstances change. There are risks and
uncertainties that could cause actual events to differ materially from the
forward-looking statements. These risks include, but are not limited to, the
pricing of the shares to be purchased in the delisting, the company's ability
to predict its financial performance, the level of market demand for its
services, the highly-competitive market for the types of services offered by
the Company, the impact of competitive factors on profit margins, market
conditions that could cause the Company's customers to reduce their spending
for its services, the Company's ability to create, acquire and build new
businesses and to grow existing businesses, attract and retain qualified
personnel, reduce costs and conserve cash, currency fluctuations and market
conditions in India and elsewhere around the world, political and military
tensions in India and South Asia, changes in generally accepted accounting
principles and/or their interpretation and other risks that are described in
more detail in the Company's filings with the Securities and Exchange
Commission including its Form 10-K for the year ended December 31, 2006.
SOURCE iGATE Corporation

Michael J. Zugay, Sr. Vice President & CFO, +1-412-787-9590, or
mzugay@igate.com