Issue of Equity

Strategic investor increases shareholding

India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on acquisition and investment opportunities primarily in the Indian business process outsourcing market, is pleased to announce that it has received notification that Wheddon Limited ('Wheddon'), an investment vehicle associated with Vincent Tchenguiz' Consensus Business Group ('CBG'), has subscribed for an additional 1,000,000 ordinary shares of 10p each in the Company at 50p per share in a private placing. This placing brings Wheddon's total shareholding to 1,312,500 shares, equivalent to 13.85 per cent of the Company's issued share
capital. The new shares will be admitted to trading on AIM on 24 March 2006.

Wheddon, which initially invested in India Outsourcing in September 2005, is a strategic investor in the Company.

Over the past few months the Company has been working with Consensus, Vincent Tchenguiz' venture capital arm, to identify opportunities where India Outsourcing could provide offshoring solutions to Consensus' portfolio companies.

Amit Pau, India Outsourcing's Chief Executive, said: 'I am delighted that
Wheddon has decided to increase its shareholding in the Company and that we continue to work closely with Vincent Tchenguiz and Consensus to provide some innovative and value adding offshoring opportunities.'

For further information:

India Outsourcing Services plc Tel: 020 7297 0010
Haresh Kanabar, Chairman 
Amit Pau, Chief Executive 
 
Teather & Greenwood Tel: 020 7426 9000
Mark Dickenson 
Sindre Ottesen 
 
Buchanan Communications Tel: 020 7466 5000
Mark Court/Elly Williamson