INVESTOR UPDATE

PATENT GRANT

Automated Meter Reading System and Method thereof

Patent No. 241745 (864/CHE/2006) The innovative solution employs an ad‐hoc wireless mesh network of granted by the Indian patent Office communication nodes capable of collecting and transmitting sensor data on 22‐Jul‐2010 to a central station by hopping the data across other communication Patent has been granted in Singapore nodes. Thus the system forms a mesh network of sensor readers that Allotted P‐No. 147778. provides for automatic discovery of network, optimum routes, fault Patent is pending in Europe, US, and tolerant failsafe routing mechanism, encryption and compression Malaysia. techniques for transmission of data in a fast, secure and reliable manner

NEW CUSTOMER ACQUISITIONS

Billing & Aggregation EVP International: UK based provider of e‐ Tanla to provide premium SMS billing in the UK commerce payment solutions ActiveSec: mobile web development and Tanla to provide PSMS billing in UK and Europe. marketing company based in Europe Halfords: Large UK retailer specializing in Tanla to provide WAP billing in the UK. travel & DIY equipment Hungama Mobile: South Africa based mobile Billing & Aggregation for South African market. content provider. Adbuyer, Universal Mobile Media, Quadra Mobile, Lessa Mobile: Consumer content Billing & Aggregation for South African market providers based in South Africa

License Manager India’s Leading mobile entertainment content Tanla to provide complete games club solution for and service provider. license rights management. Mobile Care and Safety Oy: Provider of Tanla to provide License Manager solution for mobile personal safety solutions in Europe. applications and services offered by the company.

1 Quarter ending 30‐Jun‐2010 INVESTOR UPDATE

Mobile Preloads with License Manager, Billing & Payment Tanla to preload mobile content on handsets during BeoWorld: Leading handset manufacturer production phase and provide infrastructure for license based in Malaysia. management, billing and payments for consumer purchases. Tracker Software: Leading provider of mobile Tanla to provide License Manager solution for mobile navigation software applications and services offered by the company. SPB Software: Publisher of software titles for Tanla to provide solution for preloading mobile content mobile devices including , on mobile devices. and iPhone. Paragon Software Group: Developer and publisher of software titles for all types of Tanla to provide solution for preloading mobile content mobile devices including Windows Mobile, on mobile devices. Symbian and iPhone, Android and .

Telecom Products  Deployments of Missed Call Alert platforms in progress for 6 new circles. With this Tanla will handle half of Aircel’s India traffic for Missed Call Alerts. Aircel: India’s 5th largest mobile operators  Deployment of USSD Gateway initiated.  Deployments for Outbound Dialer Services in progress for 2 new circles

UPDATES / ACHIEVEMENTS

Handling all the mobile traffic for Indian Idol Season 5, Sony Entertainment India the most popular Indian reality show on Indian Television. Handling registrations for Kaun Banega Crorepati Quiz Sony Entertainment India. Game Show, the highest rated quiz show. Handled over 223 Mn Bulk SMS traffic in a month on a Aircel India single SMSC deployment. Deployed video mail services for MTNL 3G subscribers, MTNL: India’s 8th largest mobile operators allowing users to leave a video message on any missed call. Quarter Q3 FY2010: concluded a deal to market Tanla's Telescope Inc: Provider of Participation TV InTune in the USA to its portfolio of clients that include and Mobile Marketing solutions to Media and the largest broadcasters in the US. Deployment currently corporate clients. in progress. Media launch expected this quarter

2 Quarter ending 30‐Jun‐2010 INVESTOR UPDATE

REVENUE STREAM BREAK‐UP

Consolidated Figures in INR Cr.

Q4 FY 2010 Q1 FY 2011 % Diff

Drop resulting from fall in transactional Telecom Products 14.47 8.63 40.4% traffic

Drop of 3.4 Cr due to devaluation of GBP and Aggregation 52.10 47.78 8.3% EURO. Actual drop of only 0.9 Cr owing to seasonal billing cycles.

Professional Services 3.86 1.30 66.3%

Drop of 2.5 Cr due to devaluation of EURO. Mobile Payments 28.20 17.93 36.4% Balance drop of 7.9 Cr due to changed strategy announced in Jan ‘10.

TOTAL 98.63 75.64

3 Quarter ending 30‐Jun‐2010 INVESTOR UPDATE

FINANCIALS

Profit & Loss Statement Consolidated

Q4 FY 2010 Q1 FY 2011 % Diff Drop in topline. 4.94 Cr drop due to currency conversion. Balance primarily on account of Overseas Income 97 70 02 682 74 53 14 691 23.7% drop in Products and License Manager business verticals.

Cost of Sales 38 65 70 492 30 87 52 320 20.1% Reduction in CoS owning to lower topline.

Decreased S&M expenses: 0.59 Cr due to Sales & Marketing currency conversion, 0.43 Cr expense on 9 76 34 859 8 15 01 604 16.5% expenses trade shows in the previous quarter, and 0.59 Cr due to cost restructuring Drop in G&A by 0.87 Cr as a result of reduction of expenses; balance difference General & Administrative 18 23 92 466 16 15 52 169 11.4% attributed to exchange loss of INR 7.9 Cr. in Expenses the previous quarter Vs 6.74 Cr in the current quarter Lower interest rates in industry coupled with Other Income 76 48 854 44 74 178 41.5% high working capital requirements resulted in lower term deposits.

Part of License manager business non taxable Tax Expense 48 12 390 56 550 98.8% in SEZ, in other geographies taxable income adjusted against depreciation allowance.

No minority interest since the balance 10% of Minority Interest 68 92 878 Tanla Oy was acquired on 1-Apr-2010 from the outgoing shareholders.

Balance Sheet Consolidated

Q4 FY 2010 Q1 FY 2011 % Diff Platform deployments in UK and India including 3G platforms, Missed Call Alert, Gross block 452 29 66 804 472 03 16 304 4.4% Voice Dialers, USSD Gateway, and License Management platforms.

27.75 Cr paid to outgoing shareholders of Goodwill / Investments 60 56 95 804 86 37 30 804 42.6% Openbit for balance 10% equity in Tanla Oy

27.75 Cr paid to outgoing shareholders of Cash and Bank Balances 148 70 23 199 117 87 17 732 20.7% Openbit for balance 10% equity in Tanla Oy.

All figures in INR

4 Quarter ending 30‐Jun‐2010 INVESTOR UPDATE

CASH & BANK BALANCES

Bank Total Balance (INR Lacs) FD Balance (INR Lacs) Axis Bank 5 30 Barclays Bank 35 86 21 12 Citibank 24 43 7 01 DBS Bank 15 45 7 07 First National Bank 40 HDFC Bank 7 29 HSBC Bank 82 Nordea Bank 11 53 5 69 Sampo Bank 1 67 1 28 State Bank of India 15 00 15 00 Others 21

TOTAL 117 87 57 17

5 Quarter ending 30‐Jun‐2010