Dear Customers, Shareholders and Well-wishers:

On behalf of Silverline technologies, I welcome you to visit our website.

I would like to take some time to share my thoughts and give you the company’s insight into the future.

Let me begin by extending my appreciation to each one of you for the continued confidence you have in us and your company.

Current achievements
After the testing times from 2002-2005, I am glad to share that we have successfully delivered on all the areas that we had targeted in the last 2 years. These areas were:

1. Cleared all the debts with the banks and financial institutions in India
2. Successfully acquired and integrated two companies, one in the global technology support services and the other in the area of it systems integration.
1. Millennium care Inc, a Toronto, Canada based company delivers its global technology support services to fortune 500 companies in the retail, utilities, and local government and municipalities. Many of its clients have multi-year contracts with them. Besides the client list, one of the exciting pieces that come along in this acquisition is an enabling technology called i-care that can be leveraged greatly in our future strategy that i will outline during this afternoon.
2. Netxert inc, a Detroit, USA based company delivers its services in systems integration to a number of leading us-based clients in the automotive, technology and government sectors.
3. By way of integration, both these companies have started delivering from India in the areas of software development, recruitment support and back-office support such as finance and accounting and revenue management. The teams are working towards further enhancing deliveries out of India
3. The company revenues have grown to 72 crores with a net profit of 13.5 crores. The company has demonstrated 5 consecutive quarters of growth and profitability
4. The stock market has appreciated our efforts without a very healthy surge in stock with very high volumes – in fact, among the biggest on the BSE
5. The company delivered hanuman, the only animation blockbuster, with our co-partners percept pictures and Sahara entertainment. Hanuman bagged all the awards in its category for the year
6. The company capital restructuring process is now near completion with your support.

A peek into the future

1. The company has conducted in-depth studies into the fall in 2001 as well analyzed the success in the last two years and embarked on a very focused and aggressive strategy that it will follow very diligently
2. The following is a aerial view of what your company is to undertake in the year 2008:
1. After the successful acquisitions last year,
1. The company is to grow at least 3 fold through the acquisition route
2. Your company has already created a short list of companies that will be your company’s partners in growth
3. These acquisitions will put your company back on the roadmap to be among the leaders
4. These acquisitions will happen on stock swap basis
5. These acquisitions are all profit-making companies and will not be a burden on your company and will deliver value-add day 1
2. To facilitate these acquisitions, your company is in the process of issuing foreign currency convertible bonds (FCCB). The investor community has shown favorable interest to join our growth in exchange for the FCCB. By the way, FCCB is a financial instrument that is an alternative to debt which is something I will strive hard not to ever get into
3. Your company is spinning off the animation unit as an independent BSE listed company. Honoring your patronage, the company has decided that each of you will be rewarded 4 shares for every 100 shares that you hold.
4. We are very excited with this development. The animation company, Silverline Animation Technology Limited (SA limited) has ambitious plans to be a one of the leading players in Asia in the area of building properties such as hanuman, gaming, international education and services. The strategy for SA Limited is well underway and you will hear of the latest in the months to come.

I would like you to join me in applauding the efforts of each member of your company and all partners, institutions and government agencies, statutory bodies for the invaluable support from time to time.

To sum up, I am very excited to have you by my side during this phase of resurgence and growth. I truly appreciate and thank each of you for the courage you have given me and my team.

I now look forward to your continued support to inspire our team to take the company to the next level. I stand committed to continue to deliver value to our shareholders, our employees, our business partners and our customers.

Respectfully,

Ravi Subramanian
Chairman