Driven by Strong Demand from European, US Multinationals for High-End Outsourcing Skills that Create Business Process and Technical Value

New York & Moscow, September 24, 2007 – Luxoft, Russia’s largest provider of high-end IT outsourcing services and product development to clients such as Deutsche Bank, IBM, UBS, T-Mobile and Ping Identity, today announced strong growth in Q1 FY07 across revenues, clients and headcount compared with Q1 FY06.  The company has posted double-digit-plus growth each quarter since its formation in 2000.

Revenue for the quarter was $27.87M, up from $11.89M, representing a 134-percent increase over Q1 FY2006.  Luxoft is projecting to close its fiscal year at $110M.

Revenue growth is the result of a 53-percent increase in new customers, driven by a strong demand from European clients for nearshore partners as well US multinationals’ continuing call for solid global capabilities which Luxoft provides through locations in Eastern Europe, Europe, the UK, Russia , the US and Canada.

This demand centers on Luxoft’s ability to provide high-end outsourcing services that go beyond pure tactical programming to the creation and reinvention of core business and technical processes. For example, Luxoft’s cutting-edge embedded systems development can support a broad variety of industries, employing top-notch expertise in hardware platforms, electronic components, real-time operating systems (RTOS), embedded programming and tools.  The company also offers significant telecommunications expertise in Service Delivery Platforms (SDP) and Operational Support Systems (OSS), specifically in solutions IP telephony, IP TV and digital multimedia broadcasting solutions as well as in migration to next-generation networks.

Additionally, Luxoft’s Premium offerings, which include architecture security, process consulting and performance services, provide outstanding performance improvements to IT products and also help to create customized high-performance and security practices in the clients’ work environment.

To meet growing demand from new clients,  and to continue to strengthen its global talent pool for existing clients, Luxoft added 727 new employees, a 45 percent rise, bringing total global headcount to over 2,300 people by the end of Q1 2007.  Added over the past 12 months, Luxoft’s new offices, in Vancouver, British Columbia and Odessa and Dnepropetrovsk, Ukraine, accounted for the majority of this headcount growth.

Bringing together these various success factors, Luxoft recently announced a three-pronged strategic initiative designed to continue the company’s growth and bring increasing business value to clients through the creation of vertical industry practices (financial services, aerospace, transportation, education, software, industrial/manufacturing, energy & utilities, media, and telecom); the offering of new premium services (Gap Analysis, Architecture Vision, Security and Quality Assessments), and the expansion of Luxoft’s global talent pool.

“What is significant about our growth is that Luxoft’s growth stems purely from our ability to provide top-shelf global and nearshore talent in a tight labor market, to deliver high end IT outsourcing services that help reshape businesses, and to bring strong management skills that ensure high quality and tangible, measurable results,” said Dmitry Loschinin President and CEO of Luxoft. 

About Luxoft

Luxoft, founded in 2000, is Russia’s largest provider of high-end IT outsourcing services with operations in the US, Canada, UK, Ukraine and the world’s largest delivery capabilities in Russia and CIS.

Luxoft works with global enterprises and independent software vendors (ISVs) enjoying long-term relationships with industry leaders such as Deutsche Bank, IBM, UBS, T-Mobile and Dell.

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 development centers in Moscow, St. Petersburg, Dubna and Omsk in Russia as well as centers in Kiev, Dnepropetrovsk, and Odessa, Ukraine, and Vancouver, Canada.

Luxoft is the recipient of the 2007 Frost & Sullivan Global Outsourcing Growth Excellence & Customer Value Leadership Award and was named a finalist for the 2007 Outsourcing Excellence Award sponsored by Everest Group and Forbes Magazine. In addition, Luxoft was dubbed a Rising Star in the 2007 Global Outsourcing 100 from IAOP and was ranked the world's #1 IT Outsourcing Product Engineering Vendor in the 2006 Black Book of Outsourcing.