NSTC Ness Technologies, Inc. (MM)

HACKENSACK, New Jersey, December 19 /PRNewswire-FirstCall/ -- Ness Technologies, Inc. (NASDAQ:NSTC), a global provider of information technology (IT) services and solutions, today announced that it has signed a definitive agreement to acquire Selesta Espana S.A.U., a privately held IT software distribution and systems integration company based in Spain. The purchase price in the all cash transaction is EUR6.25 million, with an additional EUR3.75 to be paid over the next two years based on the achievement of certain performance goals. For the full year 2005, Selesta Espana generated revenues of about EUR10 million and was profitable. The company has 35 employees in Spain and Portugal. Selesta Espana distributes software products developed by global independent software vendors (ISVs), to its reputable customer base in the territories of Spain and Portugal, in the public and private sectors. Selesta Espana will become part of NessPRO - Ness Technologies' product distribution business, currently operating in Israel, Singapore and Thailand. Upon completion of the acquisition, Selesta Espana will change its name to NessPRO Spain. Paolo Sferlazza, currently President of Selesta Espana, will serve as Managing Director of NessPRO Spain and will report to Yoram Michaelis, Executive Vice President and Head of NessPRO. "The acquisition of Selesta Espana is an important milestone in executing Ness' strategy to develop NessPRO as a global distribution channel for leading ISVs, leveraging our strategic partnerships with ISVs, as well as strengthening our presence in Europe," said Yoram Michaelis, Executive Vice President and Head of NessPRO, Ness Technologies. "Selesta Espana brings a wealth of expertise and experience in the growing Spanish and Portuguese IT markets, and given the nature of the software distribution business, we expect a seamless integration process. We see a tremendous number of business opportunities that we can target in these countries, and we plan to pursue these opportunities." "We are very proud to become a part of Ness Technologies," said Mr. Sferlazza. "We represent a variety of quality solution vendors and application providers, and have a strong base of sales and technical skills, as well as an extensive customer base. Ness and Selesta Espana share the same commitment to provide the best products and services and we look forward to contributing significant value to Ness." About Selesta Espana S.A.U. Headquartered in Madrid with operations in Spain and Portugal (through an office in Lisbon), Selesta Espana distributes software products spanning a wide range of applications including networks, security, data integration, e-business and service level agreement management, among others. In addition, Selesta Espana offers professional services including maintenance, system integration and consulting. About Ness Technologies Ness Technologies (NASDAQ:NSTC) is a global provider of end-to-end IT services and solutions designed to help clients improve competitiveness and efficiency. Ness specializes in outsourcing and offshore, systems integration and application development, software and consulting, and quality assurance and training. With 7,300 employees, Ness maintains operations in 16 countries, and partners with over 100 software and hardware vendors worldwide. For more information about Ness Technologies, visit http://www.ness.com/. Forward Looking Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often are preceded by words such as "believes," "expects," "may," "anticipates," "plans," "intends," "assumes," "will" or similar expressions. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Ness' actual results could differ materially from those anticipated in these forward looking statements as a result of various factors. Some of the factors that could cause future results to materially differ from the recent results or those projected in forward-looking statements include the "Risk Factors" described in Ness' Annual Report of Form 10-K filed with the Securities and Exchange Commission on March 15, 2006. Media contact: David Kanaan USA: +1-888-244-4919 Intl: +972-3-540-8188 Email: Investor contact: Drew Wright USA: +1-888-267-8160 Email: DATASOURCE: Ness Technologies Inc CONTACT: Media contact: David Kanaan, USA: +1-888-244-4919, Intl: +972-3-540-8188, Email: ; Investor contact: Drew Wright; USA: +1-888-267-8160; Email:

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