AppLabs in a strong global expansion mode

· The Independent Quality Management & Testing leader announces its global expansion plans to further strengthen its market leadership position

· To hire 800 more by end of fiscal year 2007, taking its global Headcount to 2500

·Two new Testing Facilities "� one in India; another in UK

·A high-end Training Center in Hyderabad, India

Hyderabad, India; Philadelphia, USA; London, UK; July 5, 2007: AppLabs, the world's largest independent quality management and testing company, today unveiled its global expansion plan.

The expansion plan is four pronged "� a new Testing Facility as well as a new Training Center in India, a new Testing Facility in UK and increase in manpower.

A new Testing Facility, with a seating capacity for more than 1000 employees, is being established at Gachibowli, Hyderabad, and is expected to open in October this year. The company will also be opening its first Testing Facility in the UK in early July, this year. The new facility, located near AppLabs' UK head office in Preston, will be the first in a series of Testing facilities to be opened in the UK and Europe in the next 12 months.

The opening of the Testing Facilities is part of AppLabs' global strategy to expand its presence in Europe. The rapid growth is already evident with one of the largest public sector programs in Europe, which will be utilizing the new facilities from day one.

The Testing Facility in Preston will provide UK and European clients with a cost-effective alternative to the traditional onsite model. The facility, similar to laboratories located in the USA and India, will focus on delivering AppLabs' quality management and testing services.

"The UK is one of the largest markets for testing in Europe, so the opening of the first Testing Facility in the UK, and our commitment to opening a series of these throughout Europe, is a natural progression of our business plan and reinforces our commitment to the European marketplace," said Mr. Sashi Reddi, Founder, Chairman and CEO, AppLabs.

Additionally, AppLabs will also open a high-end Training Center (Lab and Classroom) in Hyderabad, with a seating capacity for over 200 people.

AppLabs is currently adding 100 employees every month, and with plans to hire 800 professionals by the end of this fiscal year, it will take the company's total strength globally to 2500 employees.

"AppLabs has shown strong growth, consistently over the years. The last two quarters have seen an increase in our business and customers, both in the USA and UK markets. In keeping with the strong demand for our services in these markets, we are investing in further expanding our operations both, in the UK and in India" said Sashi.

Based on industry estimates from leading global analysts, the market size for testing services is estimated to be approximately $54 billion in 2007, with the prospect of being increased to $63 billion by 2010. And testing by independent companies is fast gaining credence across domains and markets.

Commenting on the new Training Facility, Sashi added " With our leadership position in the quality management and the testing industry, our employees are our strongest assets, and to retain our competitive edge, we need to constantly train and update their skills and knowledge, in newer and better processes and methodologies."

About AppLabs: AppLabs is a global IT services company specializing in quality management, testing, and certification solutions. With over a decade of experience, AppLabs has become a trusted partner to more than 600 companies, providing both quality assurance and third-party validation. Customers include American Airlines, American Stock Exchange, Royal Bank of Scotland, VISA, HP, Novell and SAP. AppLabs goes beyond technical expertise when it comes to IT services and offers customers rigorous risk mitigation processes, a singular focus on quality, expert project management, communication and global delivery capabilities. It is the first software testing company to get appraised at SEI CMMI Level 5, the highest quality standard attainable in software engineering. Headquartered in Philadelphia, the company maintains advanced testing facilities in the US, India and the UK. For more information, visit www.AppLabs.com.