LUXOFT to Open Fifth Offshore Development Center in Kiev to Meet Market Demands

IT Outsourcer Expands Capacity and Employees

Moscow, Russia and Montvale, NJ – LUXOFT, Russia’s leading software developer and services exporter, announced today the opening of a new development location, its fifth, in Kiev, Ukraine. With an expanding client base that includes Boeing, IBM, Citibank, and Dell, LUXOFT has averaged 100 percent revenue growth year over year, and now has more than 1000 employees. Since being spun out of the IBS Group (www.ibs-company.com) in 2000, LUXOFT now has five development centers, including the ones in Moscow, St. Petersburg, Omsk and Dubna, and has become one of Eastern Europe’s largest players in the offshore software development market. The company also has sales and marketing offices in London, UK, Montvale, NJ and Seattle, WA.

LUXOFT’s Kiev office will immediately start several software development engagements. It will run a dedicated development center for Russian system integration leader, IBS. It will perform several Project Life Cycle (PLC) services for multiple clients, starting with the accounting practices for a group of UK customers. In addition, LUXOFT will distribute to Kiev some of its existing Moscow Offshore Development Centers (ODCs). Initially, the office will be staffed by 30 fulltime employees, a combination of some relocated from Moscow and some new hires from Kiev. As a part of a significant company expansion throughout the remainder of 2005, LUXOFT expects the number of employees in Kiev to more than double.

Kiev was chosen because it offers a well-trained employee base, competitive cost of labor, good infrastructure, and a more favorable Ukrainian visa policy.

LUXOFT also announced that it has appointed Vladimir Dianov as managing director of the Kiev office and Mikhail Dianov as its chief technology officer. Vladimir Dianov, who brings significant R&D, financial sector and client experience, formerly served as Director of ibes SystemHaus GMBH and as Managing Director of IBS Ukraine. His twin brother, Mikhail Dianov, who brings an extensive experience in scientific research, programming, hardware systems design and information systems implementation, formerly served as CTO for IBS Ukraine and also IBS Group. The Dianov brothers are the recipients of multiple industry awards, including the State Price of Ukraine for Achievements in Sciences.

“Establishing our fifth development office in Kiev is another important corporate milestone. The demand for outsourcing, along with LUXOFT’s technological expertise and strong client relationships, makes this the right time to open a new office,” said Dimtry Loschinin, LUXOFT’s President and CEO. “Vladimir and Mikhail have a long relationship with our parent company, IBS Group, and have great IT experience. They make an excellent team to lead the new office.”

About LUXOFT
LUXOFT, a global IT company, is Russia’s leading software developer and IT services exporter. The company, which was founded in 2000 and is a member of the IBS Group, has operations in the US, UK and Russia.

Leveraging a unique, proven offshore engagement model, LUXOFT provides a full range of custom software development services for IT solutions on various platforms and technologies. 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. LUXOFT enjoys long-term business relationships with clients across IT, Manufacturing, Energy, Aviation, Finance and Government sectors including some of the best-known global Fortune 500 corporations such as Boeing, Deutsche Bank, IBM, Citibank, and Dell. Luxoft also works closely with many mid-size growth companies.