Megasoft revamps telecom business

* Announces new strategy and management team for combined entity

* Renames telecom brand as XIUS-bcgi

* Former bcgi management to spearhead the global foray

HYDERABAD, India, BEDFORD, US, November 13, 2007 -- Megasoft Limited (BSE Code No.: 532408; NSE Code: MEGASOFT), a product based technology company, today announced that it has revamped its telecom business (XIUS) and unveiled a new go-to-market strategy to rapidly expand its global telecom business.

Under the new dispensation, Megasoft's telecom practice, XIUS has been revamped with a new business model and management structure. The business & marketing function will be driven from Bedford, US and the global delivery, research & development and back office support system will be run out of Hyderabad, India. The company has also changed its telecom brand to XIUS-bcgi and unveiled the new logo today.

Mr. GV Kumar, MD & CEO, Megasoft, announced that Mr. Ersin Galioglu has been appointed as the Chief Operating Officer. He will head the overall Strategic Business Unit function for Telecom, including business development, marketing, product management and global client management. The top management team will comprise senior managers from both XIUS and bcgi. While Dan Carney will be the head of Operations function globally, Ken Sonberg will head the global R&D unit. Vasant Kumar will head the global services delivery as well as the India back office. Mike Powell will continue to be Chief Strategy officer for the company, providing strategic directions and charting the global expansion.

Ersin joined bcgi in 1997 as a financial analyst and held various management roles in the finance section before being promoted as vice president and general manager of Real Time Billing in 2004 and then as COO of bcgi in 2006. Ersin holds a bachelor's degree in engineering from Istanbul Technical University, an MBA in finance from Bentley College and a Master of Science in telecommunications from Boston University.

Commenting on the restructuring of operations, Mr. GV Kumar, MD & CEO, Megasoft said, "With this strong new management team in place, the company has an aggressive growth plan for 2008. We plan to launch a number of new solutions & applications and rapidly expand our operations support system & infrastructure offerings, while deepening our engagement with our existing Tier 1 clients. Ersin's senior-level management background and leadership will enable us to not only enhance our global presence & market penetration, but also grow our telecom business faster, allowing us to generate attractive returns for our shareholders."

Mr. Ersin Galioglu, COO, XIUS-bcgi said, "The new management structure will draw the best synergies from the previous bcgi and XIUS. Together we will form a potent force with more than 20 years of telecom experience."

About Megasoft

Established in 1994, Megasoft is a product-based technology company that focuses its expertise on the telecom sector and provides telecom products, application and technologies throughout the globe under its XIUS-bcgi brand name. Listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India, Megasoft also provides specialist outsourcing IT services and offers Product Life Cycle Management (PLM) & Applications Development & Maintenance Services (ADMS) to other product companies under the BlueAlly brand name. The company has strong product engineering, software and product development capacities with CMM Level 5 certification and has operations in the U.S., UK, Singapore, Malaysia, Germany, and in Hyderabad and Chennai in India. Additional information about Megasoft is available at www.megasoft.com, www.xius-bcgi.com and www.blueally.com