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EXL Service Awarded Contract For BPO Operations From Centrica's British Gas

New Delhi, October 6, 2005 - ExlService Holdings, Inc., a leading third party business process outsourcing company announced today that it has secured a large contract for managing back office BPO operations for British Gas, the largest supplier of residential gas and electricity in Britain. British Gas is the brand name for energy and energy-related services offered by Centrica plc in the UK. This transaction demonstrates Centrica's confidence in EXL's capabilities to assist in improving productivity and reducing costs.
The contract has been awarded to EXL after an extensive evaluation process undertaken by Centrica. Centrica used rigorous selection criteria to evaluate suppliers in India and eventually selected EXL for its excellence in professional management, rigor in migration and expertise in back office operations.

The operations in their steady state will be serviced from EXL's facilities in Noida (part of the National Capital Region) and Pune. First operations are expected to go live in January 2006. EXL is currently in the process of recruiting and training staff for British Gas processes.

Announcing the contract, Betsy Bassis, Programme Director for British Gas' offshoring initiative, said, "We are looking forward to a long term partnership with EXL. We selected EXL as our outsourcing partner for back office data processing services due to their commitment to quality and continuous process improvement. EXL has a disciplined approach to operations management which will enable us to focus our business on the core areas of expertise and value".

Mr. Vikram Talwar, Vice Chairman and CEO of EXL said, "EXL is proud of its partnership with Centrica and we are committed to providing best-in-class service and highest levels of productivity. This contract strengthens our presence in the business process outsourcing space and paves the way for us to consolidate our leadership in back office operations management".

Commenting from EXL's headquarters in New York, Mr. Rohit Kapoor, President of EXL, stated: "We are delighted with Centrica's decision to outsource part of its back office operations to EXL. We are confident that EXL and Centrica's focus on transformation of British Gas' business operations will be mutually beneficial and will further the vision of both organizations".

About EXL Service
EXL is one of the leading providers of value-added offshore business process outsourcing solutions.

EXL's core strengths as a domain and process-led, pure-play BPO company include a seasoned management and operations team, a highly demonstrable track record of seamless process migration and consistent service delivery position it uniquely in the offshore BPO space.

EXL combines in-depth knowledge of the industry segments with proven broad-based expertise in providing integrated back-office process outsourcing solutions and managing large-scale processes for its Global 1000 clients.
EXL also offers research and analytics solutions and specialized advisory services to its clients, including BPO opportunity and solution identification, process mapping and documentation, process re-engineering and business risk compliance services, including Sarbanes-Oxley advisory work.

EXL operates integrated global delivery platforms supported by a state-of-the-art and scalable infrastructure. With four world-class service delivery centers based in India (Noida and Pune) with a total capacity of 3,700 workstations per shift, EXL leverages India's large talent pool of highly qualified and educated English speaking professionals. These professionals handle complex processes that combine high-end functional processing and domain expertise.

About British Gas and Centrica plc.
In February 1997 the shareholders of British Gas plc approved its demerger creating Centrica plc and renaming British Gas plc to BG plc. Centrica provides energy and related services to domestic and commercial customers in Britain, continental Europe and North America.

With around 18 million customer accounts, British Gas is the leading domestic energy supplier in Britain and it supplies gas and electricity to around 900,000 commercial customers. British Gas is also the largest domestic central heating and gas appliance installation company with maintenance and breakdown cover. British Gas employs around 26,000 staff nationally.

Centrica Energy, which operates the Morecambe Bay gas fields and seven power stations, procures and trades energy for the group. In North America, Centrica's Direct Energy business serves more than 1.5 million customers across Canada and the USA. In Europe, Centrica is the second largest power generator in Belgium through its SPE brand and in the Netherlands, Oxxio supplies energy to residential and small business customers. In Spain, Luseo Energia focuses on the SME market.