Cambridge Solutions Ltd has informed BSE that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

“Without qualifying their opinion, the Auditors draw attention to :

1. Note 1 to the unaudited financial results. The Company, has a net receivable (after eliminating payable) from Scandent Group Inc. (formerly Albion Inc.) and Cambridge Solutions Europe Ltd (formerly Scandent Network Europe Ltd), its wholly owned subsidiaries, of Rs 994 million (net of payable of Rs 26 million) and Rs 157 million (net of payable of Rs 85 million), respectively. The Company believes that these will be recovered / paid during the period ended March 31, 2008.

2. Note 2 to the unaudited financial results, as at March 31, 2007, the Company has carried forward a deferred tax asset balance of Rs 30 million from March 31, 2007 to September 30, 2007. However, it has incurred a loss of Rs 111 million for the six month period ended September 30, 2007 primarily contributed by foreign exchange fluctuations resulting in a loss of Rs 82 million incurred during such period. In view of the significant uncertainty in foreign exchange fluctuations, the impact of foreign exchange fluctuations, if any on the financial results cannot presently be determined. However, based on the projected sales of the existing contracts and its revised finding plans, the Company is confident of generating tax profits for the year.”