Wipro Acquires European System on Chip (SoC) Design Firm NewLogic; Acquisition to Establish Wipro's Global Leadership in the Wireless LAN and Bluetooth Space

Wipro Technologies (NYSE:WIT), the global IT Servicesarm of Wipro Limited, announced today that it has signed a definitiveagreement to acquire the Austrian firm NewLogic in an all cash deal.Under the terms of the agreement, Wipro, the world's largest thirdparty R&D services provider, will pay approximately EUR 47 Mn (US $56Mn) to acquire 100% stake in privately held NewLogic. Theconsideration includes cash payment on closure of the transaction aswell as earn outs on achieving targeted financial conditions over a 3year period. NewLogic's estimated 2005 revenues is EUR 14Mn.

NewLogic is a leading semiconductor design services company withintellectual property (IP) cores for complex wireless applicationslike Wireless LAN and Bluetooth. It has an industry leading portfolioof semiconductor IPs and components in the wireless applications spaceand demonstrated innovative capabilities in the analog and RadioFrequency (RF) design. These capabilities complement Wipro's ownportfolio of IP cores and patents in wireless and wirelinetechnologies areas, positioning the combined entity as the globalleader in this space.

Wipro gains 120 specialists through this acquisition,strengthening its ability to provide proven semiconductor IP cores andcomplete System-on-chip solutions with digital, analog mixed signaland RF design services. The acquisition also provides Wipro withaccess to 25 patent filings and over 20 customers in the productengineering domain. These customers include Agere, Infineon andPhilips. Wipro is a leading solutions provider in the semiconductordesign services space with more than 1200 design engineers and theacquisition further strengthens this position in the global designservices market. Europe currently contributes to 9% of Wipro'srevenues for R&D services in embedded products.

"In the product engineering space, ownership of IPs is a key assetfor building services revenues. The NewLogic acquisition is asignificant step in our plans to be the leader in the Wireless IP andRF technology space. It will position Wipro as a complete SoC solutionprovider to our customers. The acquisition also helps us consolidateour position as leaders in this space and more particularly provides asolid base for addressing the large market in Continental Europe,"said Ramesh Emani, President, Product Engineering Solutions, WiproTechnologies

Wipro will combine its global semiconductor IP portfolio, theanalog/mixed signal services and the European SoC design services withNewLogic and create a new business unit under Product EngineeringSolutions group.

Hans-Peter Metzler, CEO of NewLogic will head the new businessunit and focus on addressing the growing customer needs for innovativeSoC solutions.

"This is a synergistic partnership where our clients will benefitfrom Wipro's broad suite of capabilities and global services delivery.We are excited about expanding NewLogic's market leading IPs andservices into Wipro's customer base. Wireless IP is a hot area and weare confident that the new combined entity is well positioned to bethe #1 in this space," said Hans-Peter Metzler, CEO, NewLogic.

Commenting on the acquisition, Sudip Nandy, Wipro's Chief StrategyOfficer said, "This acquisition is a significant milestone in ourstrategy towards creating a strong footprint in Europe and enhancingour local delivery capability. We see immediate and considerable valuefrom the NewLogic team through their potential patent portfolio,client base, and complementary skill-sets."

The entire transaction is expected to be closed during the nextone month. The closing of the transaction is subject to customaryclosing conditions and regulatory approvals. We have arranged forconference calls with senior management on Tuesday, December 20, 2005at 8:00 AM Indian Standard Time (9:30 PM on December 19, 2005 Eastern)to discuss the acquisition. For call-in numbers and furtherclarifications, contact Jatin Dalal at email id jatin.dalal@wipro.com.

About Wipro Ltd.

Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5certified IT Services Company globally. Wipro is one of the largestproduct engineering and support service providers worldwide. Wiproprovides comprehensive research and development services, IT solutionsand services, including systems integration, Information Systemsoutsourcing, package implementation, software application developmentand maintenance services to corporations globally. In Germany, Wiprotrades under the name of WITfotech Solutions.

In the Indian market, Wipro is a leader in providing IT solutionsand services for the corporate segment in India offering systemintegration, network integration, software solutions and IT services.Wipro also has profitable presence in niche market segments ofconsumer products and lighting. In the Asia Pacific and Middle Eastmarkets, Wipro provides IT solutions and services for globalcorporations. Wipro's ADS' are listed on the New York Stock Exchange,and its equity shares are listed in India on the Stock Exchange -Mumbai, and the National Stock Exchange.

For more information, please visit our websites at www.wipro.com,www.wiprocorporate.com and wipro.co.in.

Forward-looking and cautionary statements

Certain statements in this release concerning our future growthprospects and our ability to successfully complete and integratepotential acquisitions are forward looking statements, which involve anumber of risks, and uncertainties that could cause actual results todiffer materially from those in such forward looking statements. Therisks and uncertainties relating to these statements include, but arenot limited to, risks and uncertainties regarding our ability tointegrate and manage acquired IT professionals, our ability tointegrate acquired assets in a cost effective and timely manner,fluctuations in earnings, our ability to manage growth, intensecompetition in IT services including those factors which may affectour cost advantage, wage increases in India, our ability to attractand retain highly skilled professionals, time and cost overruns onfixed-price, fixed-time frame contracts, client concentration,restrictions on immigration, our ability to manage our internationaloperations, reduced demand for technology in our key focus areas,disruptions in telecommunication networks, , liability for damages onour service contracts, the success of the companies in which Wipro hasmade strategic investments, withdrawal of fiscal governmentalincentives, political instability, legal restrictions on raisingcapital or acquiring companies outside India, unauthorized use of ourintellectual property and general economic conditions affecting ourindustry. Additional risks that could affect our future operatingresults are more fully described in our filings with the United StatesSecurities and Exchange Commission. These filings are available atwww.sec.gov. Wipro may, from time to time, make additional written andoral forward looking statements, including statements contained in thecompany's filings with the Securities and Exchange Commission and ourreports to shareholders. Wipro does not undertake to update anyforward-looking statement that may be made from time to time by or onbehalf of the company. For further information, please visit ourwebsites at www.wipro.com, www.wiprocorporate.com and www.wipro.co.in.