Megasoft to acquire Boston Communications for $65 million

11 July 2007

Hyderabad-based Megasoft Limited today announced that it will acquire the Nasdaq-listed Boston Communications Group, Inc for $3.60 per share of BCGI common stock, in cash, for an expected aggregate purchase price of approximately $65 million.

The $3.60 per share price represents a premium of approximately 120 per cent over BCGI''s average closing share price during the 30 days ended 6 July, 2007.

Under the terms of the merger agreement, a subsidiary of Megasoft will commence a tender offer to acquire all of the outstanding shares of BCGI common stock for $3.60 per share in cash. The offer is expected to commence on or before 1 August, 2007, and will expire at midnight on the 20th business day following.

The board of directors of BCGI have recommended that shareholders tender their shares into the tender offer and the members of the board have agreed to tender their shares into the offer.

"This transaction creates significant value for Megasoft shareholders and expands our market and technology leadership in what is one of the most exciting areas of our industry''s transformation: convergent telecom," said GV Kumar, CEO and managing director of Megasoft.

"Megasoft and BCGI link technology with services, thereby creating an exceptional platform to add next-generation, high-value products and strategically position the company for future growth."