HYDERABAD, India, Feb. 21, 2009: Satyam Computer Services Limited (NYSE: SAY), a global Consulting and Information Technology services provider, today confirmed that it is back to its winning ways, riding on the relentless efforts of the newly constituted Board to restore stakeholder confidence and ensure business continuity.

Mr. Parekh said that “The Board today approved the process to be followed for inviting a Strategic Investor and decided to seek regulatory approvals early next week. Upon receiving these clearances, the Board would announce the process to be observed”.

 
Taking note of this, Mr. Kiran Karnik, Chairman of the Board commented “The Board is satisfied with the progress of the company’s stabilization program and appreciated the sustained efforts of Satyamites that has helped the company’s revival on a fast track mode.”
 
Added Mr. AS Murty, Chief Executive Officer, “The indomitable spirit of Satyamites has helped us to win new Purchase orders and work extensions totaling to over USD 250 Mn. since 7th Jan 2009. The recent successes include a single order of USD 50 Million, and multiple orders from across industry verticals, technologies and geographies, reflecting an all round positive trend. More than half of this value comes from new POs, which reinforces the confidence that customers have been sharing with us in our discussions”
 
 
The Board had recommended to the Ministry of Corporate Affairs for the removal of Price Waterhouse (PW) as the statutory auditors of the company and notified PW. PW has tendered its resignation to act as Statutory Auditors of the company. The company is now intending to appoint new statutory auditors.
 
“The Board has authorized its CEO, Mr. AS Murty to finalize and implement a retention plan for its key associates (in consultation with Boston Consulting Group and Special Advisors) and endorsed actions now underway to fine tune the expenditure and profit optimization plan” said Mr. Achuthan, Board Member.
 
Commenting on the use of funds, Mr. Manoharan, Director, stated, “We are using the bank funding in a controlled and phased manner to meet immediate and near-term operating requirements, including payments to vendors. The good news is that we are receiving unsolicited offers from banks for funding.”
 
Today’s meeting was the seventh since its reconstitution on 10th Jan 2009. Mr. Homi Khusrokhan and Mr Partho Datta, Special Advisors to the Board, Legal advisors and senior BCG representatives were also present for the meeting.

Appoints Mr. Homi Khusrokhan and Mr. Partho Datta as Special Advisors to Board; Move aimed at strengthening management and financial areas

HYDERABAD, India, Feb. 05, 2009: Satyam Computer Services Limited (NYSE: SAY), a global consulting and information technology services provider, today said that its full Board met over two days (4th and 5th Feb 2009) along with their Advisors.  This was the fifth meeting of the Board (in less than a month) and was chaired by Mr. Achuthan, former Presiding Officer of Securities Appellate Tribunal and Member of the Board.
The Board announced that it has appointed Mr. A.S. Murty as Satyam’s Chief Executive Officer, effective immediately. 
 “Mr. Murty (‘ASM’) is a Satyam veteran of 15 years, who has been in its forefront since Jan 1994. He brings to play a deep understanding of the organization, proven expertise in leading a Business Unit, overseeing Global Delivery, nurturing Customer relationships and spearheading the entire gamut of the Human Resources function.  He is well respected for his ability to effectively integrate the team and enable a collective decision making – which will be critical as Satyam moves into its revival phase.” said Mr. Deepak Parekh, Member of the Board.
“In our interactions over the past few weeks, we are convinced that Satyam needs an internal leader to steer it at this critical juncture and ASM has the required bandwidth and support.”  added Mr. Parekh.
The Board also announced the appointment of Mr. Homi Khusrokhan and Mr. Partho Datta as Special Advisors to the Board, to assist in Management and Finance areas, respectively. The Special Advisors, along with Boston Consulting Group will work pro bono and will assist the newly named CEO and the Board, in defining priorities and executing them, effectively.
These decisions are aimed at quickly stabilizing Satyam. The organization has visibly increased its focus on business continuity for its customers and confidence building amongst its associates (employees) and vendors.
“This is a unique opportunity to provide direction and guidance and I accept it with all humility. I have no misgivings about the enormity of the task in front of us, but together with my colleagues, I am confident we can accomplish the impossible. I look forward to working very closely with the Board, our Advisors and all Satyamites – to restore Satyam to its well-deserved glory. We will chart a precise and practical 30 – 60 – 90 day plan that will encompass and address the interests of all stakeholders.” Mr. Murty said
Commented Mr. Khusrokhan on his role : “Having led large organizations before, I expect this opportunity to be a singularly enriching experience and I look forward to contributing my might to this noble task”.
Referring to another significant development, the board today confirmed receiving bank sanctions for a total sum of Rs. 600 Crores (USD 130 Mn. approx) as a planned fund infusion towards working capital requirements. This funding, along with healthy collections, is expected to help the company tide over its financial challenges.  Satyam also reaffirmed that January 09 salaries (globally) and the fortnightly salary in Feb 09 (for its US based associates) have been met from its internal accruals.  (US payroll is run fortnightly for US based associates and has been so since company’s inception).
“Completing the complex financial restatement exercise including announcement of Q3 results and ensuring prudent financial operations will be the primary focus in the next few weeks” Mr Datta added. He will be overseeing the financial operations of the company

The Board confirmed that their key priorities and collective focus remain unchanged:
· Reaching out to key Customers & associates to reinforce their trust and confidence
· Asserting the financial position and restatement of Q3 results
· Evaluating long-term strategic options, in consultation with the Advisors
· Assessing legal liabilities and dealing with them comprehensively
· Undertaking cost rationalization measures
· Resuming investments in identified areas

Wachtell, Lipton, Rosen & Katz (www.wlrk.com) have been appointed as Satyam’s lawyers to address the Class Action suits in US. Latham & Watkins have been lawyers to Satyam for over eight years and they will continue to support Satyam in its continuing dialogue with US SEC.

“I am confident that we are on the right track and we will be able to safeguard interests of our customers, associates, investors and other stakeholders” said Mr. Achuthan, Member of the Board, who chaired today’s meeting.