ExlService Holdings, Inc. (NASDAQ: EXLS) , a recognized provider of offshore solutions, including Business Process Outsourcing (BPO), research and analytics, and risk advisory services, sold 5 million shares at an initial public offering price of $13.50 per share on October 19. The price was above the per share price range of $10-$12 set by underwriters Citigroup and Goldman Sachs. The stock closed at $24.47 on November 27. FTVentures partnered with Oak Hill Capital Partners and company management in November 2002 to acquire 100% of the company.

ExlService, headquartered in New York, primarily serves the needs of Global 1000 companies in the banking, financial services and insurance sectors. Consistently ranked among the leading global offshore BPO providers, ExlService has six world-class service delivery centers based in India with a total capacity of 4,645 workstations per shift, providing focused solutions for compliance, internal audit, accounting and financial reporting and information technology risk management.

FTVentures contact:

Brad Bernstein: bbernstein@ftventures.com

Jim Hale: jhale@ftventures.com

www.exlservice.com

“ProfitLine remains the company to emulate and beat” states Gartner’s recently released report on telecom expense management (TEM) companies. Of the 23 vendors profiled, FTVentures portfolio company ProfitLine was one of only three providers awarded the top ranking (“Strong Positive”-the highest of 5 levels). Within these three, ProfitLine was the only BPO provider.

Gartner commends ProfitLine for having the strongest single source capabilities for both wireline and mobile TEM solutions and for being one of the “few really strong providers that can support both wireline and wireless solutions in all of its offerings.” Gartner sites ProfitLine’s excellent invoice management and bill-processing capabilities.

The Gartner report emphasized that customers are looking for comprehensive BPO solutions over enterprise software because these solutions will address more operational support needs over the longer term including provisioning, help desk and invoice management. Gartner estimates that the TEM market is currently generating $400 million in annual revenue and will grow at a compound rate of almost 40% from 2006 to 2010, reaching $1.5 billion in 2010.

FTVentures contact:

Mark Lotke: mlotke@ftventures.com

Eric Byunn: ebyunn@ftventures.com

www.profitline.com

Our recent survey of key IT and operating executives in our Global Partner Network (38 of the world’s leading financial institutions) indicates that overall IT spending is expected to be up approximately 4% in 2007 versus an increase of 5 to 6% in 2006 (vs. 1-2% in 2005).

Revenue growth projects take precedence in 2007 driven by banking channel integration initiatives, payments and on-line service initiatives.
CapEx budgets are projected to be up 6% - 7% for 2007 compared to 4% - 5% for 2006.
Compliance requirements continue to grow and drive discretionary spending.
Outsourcing and offshoring are increasing in prominence.

Spending is expected to double for offshoring.
More mainstream IT services are moving offshore.
Savings from outsourcing will enable increased discretionary spending for application development.

Large scale core processing, payments systems and online banking investments still remain priorities.

Larger banks and insurance companies are focusing on straight through processing and multi-channel integration.
Consolidation is still an important element of all compliance, cost cutting and straight through processing initiatives.
Major upgrades will occur in online home banking to industrial strength platforms.

FTVentures contact:

Jim Hale: jhale@ftventures.com

Dennis Sheehan, Special Advisor to FTVentures since November 2004, has joined portfolio company Daylight Forensic & Advisory as Chief Financial Officer. Daylight is an independent fraud risk management firm conducting forensic investigations and advising on regulatory compliance to corporations and the public sector worldwide. Prior to his work with FTVentures, Dennis served as President, CEO, and Director of The BISYS Group, Inc. (NYSE: BSG), a leading business process outsourcing company for the financial services industry, where he also held the roles of COO and CFO.

www.daylightforensic.com