1058290--2/16/2007--COGNIZANT_TECHNOLOGY_SOLUTIONS

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Additional Factors That May Affect Future Results If any of the following risks occur, our business, financial condition, results of operations or prospects could be materially adversely affected. In such case, the trading price of our Common Stock could decline. A substantial portion of our assets and operations are located in India and we are subject to regulatory, economic and political uncertainties in India. We are investing substantial cash assets in new facilities and physical infrastructure, and our profitability could be reduced if our business does not grow proportionately. Our international sales and operations are subject to many uncertainties. Our operating results may be adversely affected by fluctuations in foreign currency exchange rates. We face intense competition from other IT service providers. We may not be able to sustain our current level of profitability. Our business will suffer if we fail to develop new services and enhance our existing services in order to keep pace with the rapidly evolving technological environment. We may face difficulties in providing end-to-end business solutions for our clients that could cause clients to discontinue their work with us, which in turn could harm our business. Our results of operations may be affected by the rate of growth in the use of technology in business and the type and level of technology spending by our clients. Competition for highly skilled technical personnel is intense and the success of our business depends on our ability to attract and retain highly skilled professionals. Our growth may be hindered by immigration restrictions. Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violation of these regulations could harm our business. Anti-outsourcing legislation, if adopted, could adversely affect our business, financial condition and results of operations and impair our ability to service our customers. An economic slowdown, hostilities involving the United States, and other acts of terrorism, violence or war could delay or reduce the number of new purchase orders we receive and impair our ability to service our customers, thereby adversely affecting our business, financial condition and results of operations. Our inability to employ and effectively implement the right systems, processes and tools to manage our large and expanding enterprise could have a material adverse effect on our business, results of operations and financial condition. Our ability to operate and compete effectively could be impaired if we lose key personnel. Restrictions in non-competition agreements with our executive officers may not be enforceable. Our earnings may be adversely affected if we change our intent not to repatriate earnings in India. A significant portion of our projects are on a fixed-price basis, subjecting us to the risks associated with cost over-runs and operating cost inflation. If we do not continue to improve our operational, financial and other internal controls and systems to manage our rapid growth, our business may suffer and the value of our shareholders investment may be harmed. We rely on a few customers for a large portion of our revenues. We generally do not have long-term contracts with our customers and our results of operations could be adversely affected if our clients terminate their contracts with us on short notice. Our profitability could suffer if we are not able to maintain favorable pricing rates. Our operating results experience significant quarterly fluctuations. Our profitability could suffer if we are not able to maintain favorable utilization rates. Liability claims for damages caused by disclosure of confidential information or system failures could have a material adverse effect on our business. We may have potential liability arising from the IMS Health exchange offer in the event that we breach any of our representations in connection with the Distribution Agreement entered into with IMS Health. We may be subject to legacy Dun Bradstreet liabilities that could have an adverse effect on our results of operations and financial condition. If we are unable to protect our intellectual property rights, our business may be adversely affected. Our services or solutions could infringe upon the intellectual property rights of others or we might lose our ability to utilize the intellectual property of others. We may be unable to integrate acquired companies or technologies successfully and we may be subject to certain liabilities assumed in connection with our acquisitions that could harm our operating results. System failure or disruptions in telecommunications could disrupt our business and result in lost customers and curtailed operations which would reduce our revenue and profitability. Provisions in our charter, by-laws and stockholders rights plan and provisions under Delaware law may discourage unsolicited takeover proposals. Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policies and increases our costs of compliance.

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1058290--2/16/2007--COGNIZANT_TECHNOLOGY_SOLUTIONS_CORP