Interim Results

India Outsourcing Services PLC
23 June 2005


For immediate release                                               23 June 2005


                         INDIA OUTSOURCING SERVICES PLC
                     ('India Outsourcing' or 'the Company')

           Interim Results for the 17-week period ended 31 March 2005


India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on
acquisition and investment opportunities in the Indian business process
outsourcing (BPO) market, is pleased to announce its maiden interim results
following its flotation on AIM in December 2004.

The Company, which is in the early stages of its development, recorded a pre-tax
loss of £101, 633 and a loss per share of (0.68p). Net cash as at 31 March 2005
was £394,527.

Haresh Kanabar, India Outsourcing's Chairman, commented: 'Since our successful
flotation in December we have pursued our strategy of identifying and evaluating
potential acquisitions in the Indian BPO market. We have drawn up a shortlist of
potential targets and are in the process of carrying out full due diligence on
one of our targets and are considering another closely.'



For further information:

India Outsourcing Services plc                       Tel: [phone]
Haresh Kanabar, Chairman
Amit Pau, Chief Executive

Panmure Gordon & Co                                  Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications                              Tel: [phone]
Mark Court
Elly Williamson




                              CHAIRMAN'S STATEMENT

I am pleased to report India Outsourcing's maiden interim results. The figures
represent the first 17 weeks of trading at the Company. The pre-tax loss for the
period was £101,633 and the loss per share was 0.68p. The financial performance
of the Company was in line with our expectations.

By far the most significant event for the Company during the half year was its
successful flotation on AIM in December, when the Company raised gross proceeds
of £500,000. This allowed IOS to conduct a rigorous selection process, the
results of which confirmed our view that there is a significant business
opportunity for us in creating a leading international outsourcing company that
combines the best of Indian and other international BPO companies.

Since December, the Company has pursued its strategy of seeking acquisitions in
the attractive Indian BPO market. The Indian BPO industry grew by 44.2% to
US$5.2 billion between April 2004 and March 2005 (source: NASSCOM). It is
expected to continue to grow at a significant rate over the next few years

We have already drawn up a shortlist of potential acquisitions. Our investment
criteria include a requirement for annual revenues of approximately $2-15
million; strong, dynamic management; long-term clients producing recurring
revenues; and a cash-flow positive and profitable financial profile. We have
appointed advisers and are in the process of doing full legal and financial due
diligence on one target and are considering another closely.

India's BPO market is dynamic and exciting. It is growing at a formidable pace,
largely driven by competitive forces that are making companies look long and
hard at their cost bases.

We will continue to execute our strategy and look forward to updating
shareholders in due course.


Haresh Kanabar
Chairman




Profit and Loss Account
For the period ended 31 March 2005 (unaudited)
                                                                      17 Week Period ended
                                                                         31 March 2005
                                                                           (unaudited)
                                                        Note                     £

Turnover                                                                         0
Cost of Sales                                                                    0

Gross Profit                                                                     0
Administrative Expenses                                                  (106,037)

Operating loss                                                           (106,037)

Net interest ( payable ) / receivable                                        4,404

Loss on ordinary activities before taxation                              (101,633)

Taxation                                                   2                     0

Loss after taxation                                                      (101,633)

Loss per share                                             4                (0.68) p


All recognised gains and losses are included in the profit and loss account.





Balance Sheet
As at 31 March 2005 (unaudited)
                                                                                 31 March 2005
                                                                                  (unaudited)
                                                          Note                          £

Fixed Assets
Tangible Assets                                                                       5,162
Total Fixed assets                                                                    5,162

Current Assets/ ( Liabilities )
Cash                                                                                394,527
Debtors & prepayments                                                                61,541
Creditors: amounts falling due within one year                                    (113,458)

Total assets less Current Liabilities                                               347,772

Creditors: amounts falling de after more than one year                                    0

Net Assets                                                                          347,772

Capital and reserves
Share capital issued and fully paid up                                              150,000
Share premium account                                                               299,405
Profit & loss account                                                             (101,633)

Shareholders' Funds                                                                 347,772





Cash flow statement
For the period ended 31 March 2005   (unaudited)
                                                                             17 Week Period ended
                                                                                 31 March 2005
                                                                                  (unaudited)
                                                                                       £

Net cash outflow from operating activities                                         (53,776)

Returns on investments and servicing of finance
Interest Received                                                                     4,404

Net cash flow from returns on investments and                                         4,404
 servicing of finance

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                   (5,505)

Net cash outflow from capital expenditure and
 financial investment                                                               (5,505)

Financing
Issue of shares                                                                     449,404

Net cash inflow from financing                                                      449,404

Increase in cash                                                                    394,527




Notes to the interim report


1: BASIS OF PREPARATION

The interim accounts for the six months ended 31 March 2005 are unaudited and do
not constitute statutory accounts in accordance with section 240 of the
Companies Act 1985.

The financial information has been prepared in accordance with applicable
accounting standards and under the historical cost accounting convention.

2: TAXATION

There is no tax charge for the period due to the loss arising.

3: DIVIDENDS

The Directors are not declaring a dividend for the six months ended 31 March
2005.

4: LOSS PER SHARE

The calculation of the loss per share is based on the loss for the period of
£101,633 and the weighted average number of shares in issue during the period of
15,000,000

COPIES OF INTERIM RESULTS

Copies of the interim results are available from the Company's office, 22 Soho
Square, London W1D 4NS


                      This information is provided by RNS
            The company news service from the London Stock Exchange