Deal Expands Outsourcing Leader’s US Operations and Financial Services Business

New York, April 17, 2006 – Luxoft, the global provider of IT outsourcing services, today announced the acquisition of New York City-based IT Consulting International (ITCI), a company which has been providing IT outsourcing, on-site staffing and project management services for Fortune 500 and middle market businesses since 1993.  The combined company will have more than 1,500 employees worldwide, and combined revenue in 2005 of more than $45 million.

This move expands Luxoft’s operations and client support capabilities in the U.S., leverages additional service offerings, and strengthens vertical expertise in Financial Services worldwide. In turn, existing ITCI clients will benefit from Luxoft’s proven track record of long-term client partnerships managing successful offshore development centers for clients like IBM, Boeing, Dell and Deutsche Bank.

The acquisition will take effect on May 1, 2006

With the merger, ITCI’s service offerings will be integrated into Luxoft’s branded outsourcing framework which includes the LUXline™, LUXwork™, and LUXguide™ service lines. Luxoft will also combine its collaborative project management environment with ITCI’s Sentinel™, a proprietary, web-based portal for the facilitation and efficient management of outsourcing projects.

“With the acquisition of ITCI, the first purchase in our six-year history, we are taking another significant step in providing top-notch talent, global reach and deep expertise for our clients,” said Dmitry Loschinin, President and CEO, Luxoft. “The ITCI team brings strong staffing capabilities and excellent financial services consulting skills that compliment our ongoing work with Deutsche Bank and other financial clients. We are confident this move will pay off for our company and our customers.” 

As part of the deal, ITCI President and 20-year IT services veteran, Lev Saks, has been named CEO of Luxoft, USA, a new position. ITCI Managing Partner Michael Friedland will serve as COO at Luxoft, Moscow. Luxoft’s New Jersey-based team will move to ITCI’s Wall Street office.

”By bringing together the strengths of  Luxoft and ITCI our clients can not only tap into a strong US on-site presence, but also leverage a deep and proven resource base in Eastern Europe for offshoring,” said Saks. ”This deal shows Luxoft’s ongoing commitment to its growing market and worldwide client base.”

Luxoft has recently been recognized by BusinessWeek as the top emerging outsourcing provider in Russia and Eastern Europe, was ranked as the top IT services company on the Rising Star list in the IAOP’s Global Outsourcing 100, and was featured in Global Services Magazine’s Global Services 100 which recognizes the world’s most innovative business and technology service providers.

About Luxoft

Luxoft is a leading software developer and IT services exporter in Eastern Europe. Founded in 2000, Luxoft has operations in the US, UK, Ukraine and Russia

Leveraging a unique, proven offshore engagement model, LUXguide, Luxoft provides a full range of custom software development services for IT solutions on various platforms and technologies. Luxoft enjoys long-term business relationships with clients across IT, Manufacturing, Energy, Aviation, Finance and Government sectors including some of the best-known global leaders, such as Boeing, Deutsche Bank, IBM and Dell. Luxoft also works closely with many mid-size growth companies and independent software vendors (ISVs).

Luxoft’s software development processes meet the highest quality standards, and the company was the first in Europe to achieve Level 5 CMMI quality certification. Luxoft runs research and offshore development centers in Moscow, St. Petersburg, Dubna, Omsk, and Kiev, Ukraine.