Satyam Clarifies its case with UPaid

HYDERABAD, India, May 14, 2008: Satyam Computer Services Ltd. (NYSE:SAY), a leading global business and information technology services provider, today announced that in response to the news item regarding the legal case against UPaid Systems Ltd, a British Virgin Islands Company engaged in mobile payments services,  it would like to clarify the following:

During 1997-1998, one of the subsidiaries of Satyam Computer Services Limited was engaged by Intouch Technologies (currently UPaid Systems) for product development work. UPaid Systems wanted to patent this product and Satyam provided support as contractually required to UPaid for obtaining the patent. Some of the then Satyam employees were named as co-inventors to the Patents. In 2002, Satyam and UPaid concluded the business relationship and based on the settlement agreement signed then, any future disputes were to be tried under the UK laws. In 2006, UPaid filed certain claims of infringement against some companies in US and in the proceedings, Two former Satyam employees denied signing the patent assignment documents. Aggrieved, UPaid filed a case against Satyam in Texas, USA in 2007 to declare their patent valid and sought damages from Satyam for any possible losses arising out of impairment of their patent. Satyam in turn filed a petition in London since it contended the jurisdiction lay there in line with the terms of the agreement signed between the two parties earlier on. The Courts in London have decided that the case in Texas can continue and be heard based on an earlier Assignment agreement signed by Satyam’s then subsidiary and UPaid. Thus the current decision in the UK court has determined the jurisdiction lies in US and the underlying case is expected to be tried in US in 2009. The US case is in a very preliminary stage and has to undergo the due process of law and Satyam is confident that it has merits in this case and would contest the case.  It is premature to make any judgment on the quantification of any potential damages and also the matter is sub-judice. Satyam is considering its legal options as regards the dismissed appeal in the London courts.

Safe Harbor

This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended December 31, 2007, furnished to the United States Securities Exchange Commission on January 28, 2008 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at http://www.sec.gov.

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