KANBAY INT'L Q2 CY2006 RESULTS

Consolidated revenue of $105.8 million and EPS of $0.18

Company raises full year revenue and EPS guidance

Integration of Adjoined Consulting ahead of schedule

Mumbai, August 2, 2006"" Kanbay International, Inc. (NASDAQ:KBAY), a global management consulting, technology integration and development, and outsourcing firm with over 5,000 associates in India, reported financial results for its second quarter ended June 30, 2006.

Second Quarter 2006 Highlights:

Consolidated revenue of $105.8 million "" company's first $100 million + quarter Diluted EPS of $0.18 is net of $0.03 for employee stock compensation expense Integration of Adjoined Consulting running ahead of schedule A total of 35 new clients were added in the quarter Conduct earnings conference call from Hyderabad centre "" first time in company's history the call has been conducted from India

Raymond Spencer, Chairman and CEO, conducted the earnings conference call from Kanbay's Hyderabad delivery center. This was the first time that Kanbay had conducted its quarterly earnings call from India since its listing on the NASDAQ stock exchange in July 2004.

Spencer commented, "I am happy to report our financial results from our campus in Hyderabad. I have been in India for the past few weeks and am visiting all of our centres in Pune, Hyderabad, and Chennai. We are extremely pleased with Kanbay's performance in the second quarter. We achieved these results based on strong execution and favorable market conditions. We are seeing strong demand within the financial services industry, notably the need to support and upgrade legacy systems and mission critical applications. Discretionary spending trends are also strong as the industry seeks to enhance revenue and increase operating efficiencies."

Spencer added, "Our pipeline of existing and potential client opportunities is robust. We are excited about the fact we signed 35 new clients in the quarter, the largest number ever in our history."

Spencer continued, "My visit to India is very timely.. In light of the strong demand we are seeing and our positive view regarding our market position, we are taking the necessary steps to ensure we can continue to grow. We continue to consider India as the preferred destination for the delivery of global IT services. Last week, we inaugurated our new 152,000 square foot Global Learning Center on our Pune campus. We have also announced that we are moving into a new 700 seat delivery center in Chennai within a few months and that we also have acquired 30 acres of land in an SEZ in Chennai for future development of a new campus. In Hyderabad, our new campus is partially operational and, once completed next year, we will be able to accommodate over 3,500 associates here."

Financial Review

Bill Weissman, Kanbay's Chief Financial Officer, added, "We posted a strong quarter of growth across all service lines. Of the $105.8 million in consolidated revenue, $72.8 million was contributed by Kanbay, excluding the Adjoined acquisition, and this represents an increase of 14 percent sequentially and 28 percent year-over-year. Adjoined posted $33 million in revenues in the second quarter, a solid performance.

"We are particularly pleased with the growth of third party revenue in the second quarter. Kanbay third party revenue, before Adjoined, grew 21 percent sequentially in the second quarter."

Weissman added, "Our related party revenue from HSBC grew 9 percent sequentially and 29 percent year-over-year on a comparable basis, another quarter of strong performance."

Outlook and Guidance

Regarding the third quarter, Kanbay anticipates total consolidated revenues of at least $109 million in the third quarter. On a stand-alone basis, Kanbay should achieve revenue of approximately $75 million while Adjoined should contribute approximately $34 million in the third quarter. This outlook reflects not only continuing growth in the business but also the fact that projects at several accounts started sooner than anticipated in the second quarter.

Based on Kanbay's performance year-to-date and taking into account revenue synergies, the company is increasing full year consolidated revenue guidance from at least $385 million to at least $402 million. In terms of earnings, on a consolidated basis, Kanbay is targeting third quarter 2006 EPS of $0.21 with a full year EPS of at least $0.81.