Core Projects - Signing of MOU with IGNOU

Core Projects & Technologies Ltd has announced that coming together in a Higher Education project using the Space Age technology developed by the NASA sponsored Center of Higher Learning (CHL), the Company has signed a Memorandum of Understanding with the Indira Gandhi National Open University (IGNOU) for setting up Visualisation Learning Centres at all IGNOU centers in India.

The revolutionary project will create education content using space age technology - Cave Automatic Virtual Environment (CAVE) - developed by scientists of the Center of Higher Learning (CHL) - at the NASA Stennis Space Center, Mississippi. The Company has exclusive rights for this technology from CHL for the Asia Pacific region.

Deployment of this technology in classrooms will greatly enhance the ability of students to understand complicated topics. It will also enable them to conduct innovative experiments leading to cutting edge Research and Development efforts. The inherent talent and potential in students will be exploited by the use of such advanced technology.

This project of the Company with IGNOU will change the landscape of instructional technology and significantly improve the efficacy of learning materials, thus enhancing the quality of education and helping the education system to churn out professionals of the highest caliber, matching international standards.

The Company will maintain a staff of visualization scientists trained by CHL to develop a substantial library of Immersive 3D Education Software titles. The Company and its partners will cover subjects ranging from Biology, Anatomy, Chemistry, Molecular Science, and Physics to training topics for Medical, Engineering, and Vocational students. The Company will create a path for a more effective way for students to learn subjects and explore concepts that were previously only available in the dry confines of textbooks.

IGNOU's role in its unique partnership as per the MOU signed with the Company will be to set up Visualization Laboratories at all its centers, suggest the educational content and provide subject matter experts in the development of the educational products. It will also develop an education program to cultivate additional visualization scientists to manage and maintain the Visualization Labs constructed at each IGNOU campus. IGNOU will advice and give recommendations for specifically tailored applications to be developed by the Company. IGNOU will also provide professional consultation in support of the creation of the IGNOU Visualization Labs in India and worldwide.

The Company has been at the forefront of administrative school software. With several large application installations throughout the United States and UK, and with additional opportunities emerging in India, the Company is a leader in providing school administrators with the tools they need to help provide quality education to students.

Setting up of one center will generate a one time Licence Revenue of upto Rs 3.00 crores and a recurring revenue of Rs 2.80 crores per year for the Company. Over the next five years the Company expects to set up 200 centers per year, inclusive of the centers to be set up for IGNOU.

Core Projects & Technologies Updates

Core Projects & Technologies Ltd has informed that the Company is co-sponsoring the
"International Conference on Universal Quality School Education: Challenge of the 21st
Century" along with IBM and IL&FS Ltd to be held at Hotel Ashok New Delhi from November 21, 2007.

Further, the Company has informed that the Company plans to sign an MOU at this conference with the Indira Gandhi National Open University to set up Visualisation Laboratories using CAVE 3D Interactive Technology at all IGNOU Centers. The Company also plans to sign a similar agreement with IL&FS to set up such Visualisation Centers throughout India.

Core Projects & Technologies - CHL agreement

Core Projects & Technologies Ltd has announced that its path breaking agreement with the Center of Higher Learning, USA, (CHL), with which it is poised to launch into the areas of curriculum and content delivery in the global education space, with cutting edge technology never before seen in the modern classroom.

Located at the NASA John C Stennis Space Center, CHL, is a collaborative effort between NASA, the US state of Mississippi, and is administered by the University of Southern Mississippi. CHL uses the pioneering Cave Automatic Virtual Environment (CAVE) technology developed by scientists at CHL located at NASA's Stennis Spade Center to create virtual reality based educational content and curriculum. This Immersive Visualization technology allows users to become fully immersed in an interactive 3D virtual environment. Research has shown students retain information at a much higher rate when working in more 3D environments, than when information is presented with textbooks or other flat, 2D representations. This new technology is therefore a dramatically different approach to teaching, and presents schools around the world with numerous new opportunities to educating today's students.

The CORE and CHL collaboration is exclusively to the Asia-Pacific region and will enable CORE to assimilate and internalize the technology for use in developing content for the Indian and international education markets. Commenting on the partnership, Mr. Sanjeev Mansotra, Chairman and Managing Director of CORE foresees, "This arrangement will arm CORE with tomorrow's technology and enable us to significantly contribute to global education markets. Students around the world will benefit from the use of CAVE technology, as this will take teaching and learning to a completely different level. We are very excited by the substantial impact this partnership allows us to make in the global educational content and curriculum segment, an area in which we did not have prior presence."

CORE plans to produce educational software titles for over 17,000 higher education institutions, as well as hundreds of thousands K-12 schools in the US, UK and India. The applications will be in areas such as mammography physics, chemistry, molecular science, biology, computer science, mathematics, scientific computation, and more.

CORE has been at the forefront of developing administrative educational software. With several large application installations throughput the US and UK, and with additional opportunities emerging in India, CORE is a leader in providing school administrators with the tools they need to provide quality education to students around the world.

Core Projects & Technologies

Core Projects & Technologies Ltd has informed that the Company has finalized multiple acquisitions in the UK and USA, consolidating its position as a dominant player in the Education Sector. The acquisitions will achieve completion by end of September, 2007.

An IT Company with a strong focus on Education Products and Solutions, the Company will achieve a market leadership position in the Global Education space with these acquisitions. The acquisitions bring with them products and solutions which the Company currently does not have. With the addition of these products, the Company is well on its way to becoming an end-to-end solutions provider in the Global Education space.

In the UK, the Company has signed a Business Transfer Agreement with Azzurri Education and a Heads of Agreement with Hamlet Computer Group.

Azzurri works to increase educational attainment through the innovative use of technology. Its technology solutions help teachers teach and learners learn. Azzurri has over 10 years’ experience of delivering a wide range of technology products, services and educational software to over 1,000 schools in the UK and some 12 local authorities. Azzurri is one of only two Companies in the UK that hold all the four Beeta Accreditations for Interactive Technologies, Network Installation, Internet Safety and Laptops, together with a strong portfolio of recognised industry accreditations.

The second acquisition in the UK, the Hamlet Computer Group, was founded in 1973 and has a wealth of experience in the provision of high quality I.T. Systems to high profile organisations around the world. Hamlet's clients include National Examinations Authorities in the UK, seven countries in Africa and three countries in the Caribbean.

In the USA, the Company has acquired the global businesses of KC Management Group and its subsidiaries,. KC Management Group is one of the top US Education Management Companies who are key trusted advisors to many states and local school districts. KCMG currently provides services to School Systems in the states of 1) California, 2) Illinois, 3) Minnesota, 4) Florida,5) Georgia, 6) South Carolina, 7) Tennessee, 8) Texas, 9) Massachusetts, 10) Ohio. KCMG serves over 2500 schools and over 1.6 million school students in these states. The KC Management Group (KCMG) is a trusted advisor to many education and Government entities providing a full spectrum of services in system integration, implementation of Student Information system, Curriculum systems, Special Education systems, business consulting, Information Technology, Quality Assurance, and Organizational Development.

The Acquisition of KCMG is a strategic fit as it provides the Company with the right blend of expertise in management, processes, and best practices for its current and future customers.

The above acquisitions will add more than a dozen products to the Company's existing repertoire of Education products. These include EdPortal™, a comprehensive systems integration solution meeting the needs of today's school districts; Edmastery™, a complete web-based item banking, assessment administration, and standard-based reporting solution; EdOps4™, a web-based operations management solution; EdMiner™ an easy to learn student performance solution for making data-driven solutions; EdFunds™, an online e-rate tool for managing request, awards, and e-rate funding; EdAcademy™, a powerful online professional development toolset; TALMOS Primary, which helps teachers deliver exciting lessons, share lesson resources and evaluate lesson effectiveness; TALMOS Attendance, a sophisticated pupil and lesson registration system designed to ease teacher workload raise lesson attendance; TALMOS Gateway, a flexible, web-based CMS tool that allows schools to manage and update their own websites, TALMOS Classroom Manager and TALMOS Classroom Filter, practical tools to assist teachers in controlling the class and classroom, TALMOS Guardian acts as a comprehensive safety net across all applications, including chat rooms and email; FAIM - the most comprehensive, reliable and cost effective exams management system available to assessment & qualifications providers worldwide and is a web-enabled state of the art system that manages ANY type of assessment process and finally, The NFP Series - an integrated Welfare & Financial Management System for charitable organisation and associations in the Not for Profit Sector.

The addition of these products to the Company's existing portfolio of Education Solutions will enable the Company to strengthen its position in the Indian Education Sector. These products incorporate the critical software components required by Administrators and Educators in India to successfully implement Mission Mode programs like the Sarva Siksha Abhiyan (SSA). With time tested and "go to market" products readily available with it, the Company will be in a position to substantially reduce the implementation period of’ programs like the SSA.

On completion, the acquisitions will immediately add USD 45 million annually to the revenues of the Company. All the acquired businesses are operating at 12-15% EDT margins. With the migration of product development to the Company's Global Delivery Center at Mahape, the Company expects to improve these margins to about 20-22%. Revenues will also see a significant increase, since the Company will cross sell all its products to the existing and newly acquired customers. The acquisitions will cost the Company about one times the revenues of the acquired businesses, which will be about USD 45 million. This will be funded out of the FCCB proceeds which the Company had raised in May, 2007.