Indus International Reports Fiscal Fourth Quarter And Full Year 2006 Results

Company Achieves 75% Growth in Adjusted EPS during Fiscal Year 2006

Indus International, Inc. (NASDAQ: IINT), a leading Service Delivery Management (SDM) solution provider, today announced the results of operations for its fiscal fourth quarter and year ended March 31, 2006, and provided guidance for future financial performance.

Total revenue for the fourth quarter of fiscal 2006 was $31.9 million, compared with $37.4 million in the same quarter last year and $34.7 million in the prior quarter. Revenue from software license fees totaled $5.1 million, compared to $8.9 million in the same period a year ago and $8.1 million in the prior quarter. Net income for the quarter was $2.1 million, or $0.03 per fully diluted share, compared to $2.5 million, or $0.04 per fully diluted share, in the same quarter last year and $2.9 million, or $0.05 per fully diluted share, in the prior quarter. Adjusted net income, which excludes restructuring benefits and settlement expenses, was $1.9 million, or $0.03 per fully diluted share, for the fourth quarter of fiscal 2006 compared to $2.4 million, or $0.04 per fully diluted share, in the same quarter last year and $3.0 million, or $0.05 per fully diluted share, in the prior quarter. A reconciliation of adjusted net income (loss) is included in the financial statements that are part of this press release.

Total revenue for fiscal 2006 was $133.2 million, compared with $142.2 million in fiscal 2005. On a full-year comparison, software license revenue was $26.0 million; support, outsourcing and hosting revenue was $59.7 million and consulting, training and other revenue was $47.5 million in fiscal 2006 compared to $31.9 million, $59.5 million and of $50.1 million, respectively, for fiscal 2005. It is important to note that license revenues for fiscal 2005 include a transaction for more than $5 million, which was closed in 2003 but not recognized until fiscal 2005 when the company completed certain translation efforts for a customer in Japan.

The company's net income for fiscal 2006 totaled $8.2 million, or $0.14 per fully diluted share, compared with a net loss of $6.1 million, or $0.11 per fully diluted share, during the prior year. Adjusted net income, which excludes the restructuring benefits and settlement expenses, was $8.2 million, or $0.14 per fully diluted share, for fiscal 2006, reflecting a $3.8 million improvement over the adjusted net income of $4.4 million, or $0.08 per fully diluted share, for fiscal 2005.

Key Quarterly Financial and Business Highlights:

• Signed new clients in service delivery management space during the fourth quarter, including Johnson Controls Inc., Salt River Project and American Tower Corporation
• Won multiple successful license expansions during the fourth quarter in utility industry, including Greater Cincinnati Water Works and several municipalities
• Signed international license expansions in Central Europe during the fourth quarter at CEZ in The Czech Republic, as well as ENTP in Algeria, GE Plastics and Sanofi

Key Annual Financial and Business Highlights:

• Posted adjusted net income for the year, which excludes restructuring benefits and settlement expenses, of $8.2 million, or $0.14 per fully diluted share, reflecting an improvement of 75 percent over the prior year amount of $4.4 million, or $0.08 per fully diluted share
• Increased cash by $9.1 million over the fiscal year, which is net of a $2.5 million payment as a result of our lease buyout
• During fiscal 2006, increased licenses of Service Suite product by more than 200 percent from the prior year, including several strategic wins outside of the utility market
• Had successful license sales during fiscal year 2006 in Europe at CNE of Romania, La Compagnie Generale Des Matieres Nuclearires (COGEMA) and Danka, as well as a successful go-live and license expansion at PAKS in Hungary
• Continued development of business opportunity in Japan with a license expansion at Tokyo Electric Power Company (TEPCO) and the delivery of the translated product to an additional Japanese electric power company
• Maintained leadership in the utility market, particularly for nuclear power generation, as evidenced by a key license expansion during fiscal 2006 at Entergy, which will lead to the standardization of Indus products across their entire fleet of nuclear power plants

Executive Commentary
"Although the software license fees for the fourth quarter of fiscal year 2006 were not what we had expected, we did meet our annual projections on adjusted EPS and continued to make progress toward our business goals," said Indus President and CEO Greg Dukat. "In all of our key business areas -- utilities, international markets and commercial SDM opportunities -- we remained focused and successfully executed our strategy. License transactions for our field service management product, Indus Service Suite, grew more than 200 percent for the year, far exceeding growth in the fast- growing field service market as a whole. So, while we face challenges in certain areas as all industry-leading companies do, we enter fiscal 2007 in excellent shape."

Indus Chief Financial Officer Pat Henn added, "Our restructuring and cost control efforts over the past few years have allowed us to improve the profitability and financial position of the company significantly during fiscal 2006. We will continue to look for opportunities to improve our financial position as we execute our Service Delivery Management strategy."

Business Outlook
For the fiscal year ending on March 31, 2007, the company currently projects adjusted net income, which excludes restructuring charges and benefits and stock option compensation expense under SFAS 123(R), to fall within a range of $0.17 and $0.23 per fully diluted share. A reconciliation of adjusted net income (loss) is included as part of this press release. These projections assume the company will not be subject to income taxes and that there are no significant changes to the current general economic environment and the capital spending environments within our markets over the course of the year.

Like most companies, Indus will be taking live questions from securities analysts and institutional portfolio managers, but the complete call is open to all interested parties on a listen-only basis. Furthermore, individual investors may submit questions at any time prior to and during the call by sending an email to investorqa@indus.com.

About Indus International
Indus is a leading Service Delivery Management (SDM) solution provider, which help clients in a broad array of industries optimize the management of their customers, workforce, spare parts inventory, tools and documentation in order to maximize performance and customer satisfaction while achieving significant cost savings. Indus customer, asset and workforce management software products, professional services and hosted service offerings improve our clients' profitability by reducing costs, increasing capacity and competitiveness, improving service to their customers, facilitating billing for services and ensuring regulatory compliance. Indus solutions have been purchased by more than 400 companies in more than 40 countries, representing diverse industries -- including manufacturing, utilities, telecommunications, government, education, transportation, facilities and property management, consumer packaged goods and more. For more information, visit our Website at http://www.indus.com.