Delivering Excellence in Software Engineering EPAM Systems Inc

Delivering Excellence in Software Engineering EPAM Systems Inc EPAM POWER POINT Corporate Overview & Services Sub Topic TITLE Oct 2009. ® 2008 EPAM Systems. All rights reserved. Slide 1

Summarizing EPAM’s Near. Shore Value Proposition q #1 “Near. Shore” Engineering Services Provider for Central & Eastern Europe, rated by; size of resource pool, accumulated experience, completed projects, # of clients, size of revenues, independent recognition. q Primary “Value Proposition” is MOST EFFICIENT, EXPERIENCED, HIGHEST QUALITY software engineering services, to deliver more value per “Man-Day” of effort. q – Pure focus and software engineering in a distributed environment from day 1. Heavy investment in developing and continuously improving unique toolset. Dedicated CTO’s office adds “non-billable” value. – Confidence from experience engaging in advanced “value-oriented” engagement models, SLA and Fixed-Price, with more experience of these more challenging risk-reward based models than any vendor (last 5 years varies between 45 -55%) – Product/platform development for leading technology providers (SAP, BEA, Microsoft, Oracle, Novell, Google, ATG, SUN) and high % of Product vendors- Very demanding, highly complex demonstrates recognized excellence in engineering. – Deep experience of all current Methodologies (RUP, Agile, AUP, Waterfall) supported by the most advanced SDLC toolset specially advanced in Distributed AGILE (SCRUM, TDD, XP) – Largest employer in SW development in CEE region. Excellent reputation, not “staff to order body shop”, gives EPAM “Pick of the crop” from regional talent, best training, clear focus and specialization, highly motivated. Secondary “Value Proposition”; cost, convenience and de-risking via “Near. Shore” Delivery – Time-zone, ease of travel and communications to development centers. For EU enormous difference, for US still meaningful item and travel benefits to India and Asia – 350+ EU based resources. Simplifies, decreases costs, and increases success of workshops & face-to-face meetings. Facilitates better “on-site activities”: Inception, Elaboration and Transition ® 2009 EPAM Systems. All rights reserved. Slide 2

A Truly Regional Player 4, 600+ staff; #1 in Hungary, #2 in Russia, #1 in Belarus, #3 in Ukraine; 41+ Mil. hours delivered projects in 34 countries in 15 Languages Client Management Locations: Frankfurt London Stockholm Newtown, Minneapolis, Boston Zurich Moscow ® 2009. EPAM Systems. All rights reserved. Production Development Locations: Russia Ukraine Belarus Hungary Deployed project locations

No. 1 Software Engineering Company in CEE, Top 10 Globally q No. 1 – Depth of resources and scalability. 4600+ engineers with 100% focus on software engineering. q No. 1 – Geo-diversity. Risk mitigation, and largest resource pool catchment. Significant SW engineering resources in Hungary (#1), Russia (#2), Ukraine (#3), Belarus(#1), not country dependant, true regional leader. q No. 1 – 41+ million person-hours completed projects. q No. 1 – $161 mil calendar ‘ 08 rev. 2000 -2008 CAGR 39% organic q No. 1 – Lowest Risk, Most Transparent. Most financially stable & transparent; Profitable since 1993, US Corp (Newtown PA), Debt-free, Deloitte audited to US GAAP (’ 02 -08) in all locations, unmatched IPR protection & security 78% shareholders US entities. q No. 1 – Lowest staff turnover in region. (undesirable ~5. 8%), highest average tenure of Top 7 vendors. q No. 1 – First (only) to receive SAS 70 Type II in CEE (Hungary Belarus & Ukraine). q No. 1 – First in Europe with CMMI Level 4 in 2003, only vendor with 2 CMMI centers. q No. 1 – More independent awards and recognition as #1 than all competitors q No. 1 – Financial Services Clients than any CEE vendor (over 700 resources currently serving 15+clients) q No. 1 – Successfully deployed project in 34 countries and 15 languages More engineers, more completed projects, most comprehensive regional talent access, higher revenues, greater stability & lower risk than any competitor. Consequently, EPAM was recognized by 11 independent industry awards in the last 4 years, to be No. 1 in the CEE region! ® 2009. EPAM Systems. All rights reserved.

Independently Recognised as #1 IT Outsourcer in Eastern Europe ● The Global Outsourcing 100 (2006 – 2009): Ranked the top Eastern European and Russian ITO vendor 06 -09, also: − − − ● Black Book off Outsourcing; Top 50 Best Managed Global Outsourcing Vendors (2006 - 2009): #38, Only Central and Eastern European ITO company included in the rating: − 5 Best 10, Leaders (globally) – Entertainment and Media Best 20, Leaders (globally) – Financial Services Best 20, Leaders (globally) – Technology #1 Software Product Development and Engineering company in; Technology, Media & Publishing, Consumer Packaged Goods, Transportation, Telecommunications, and verticals ● The Global Services 100 (2005 – 2009): Global Top 10 (#7) "Best Performing IT Services Providers“ (2008, 2009). Selected No. 1, 2008, in “Emerging European Markets” category ● International Business Award (2007, 2008): Best MIS & IT Organization category winner 2007, runner up to BT 2008. (other category winners, Daimler, EY, BAT, Vodafone, HP, Travelocity etc. . . ) ● The Software 500 (2004 – 2009): Included in the rating of the world's largest software and services providers, in 2009 EPAM made 10 positions up from 2008 (placed 180 th) ● The CRN Fast Growth 100 (2006 – 2009): Ranked among fastest growing solution providers in North America ● Inc 500/5000 (2002, 2005 – 2009): Named to the fastest growing private companies in US ● Deloitte’s Technology Fast 500 in North America / Fast 50 in NJ (2002 – 2009): Included in the 500 fastest growing technology, media, telecommunications and life sciences companies in North America ● The Top 25 Consultants 2006 - EPAM CEO and President named one of the Top 25 Most Influential Consultants by Consulting Magazine ® 2009. EPAM Systems. All rights reserved.

More Global Leaders Choose to Work With EPAM ® 2009. EPAM Systems. All rights reserved.

Results, Transparency and Corporate Governance High level of profitability and cash flow. . . strong balance sheet GAAP, audited High level of transparency and accountability US GAAP audited from 2001 (current auditor – Deloitte US). All subs/locations audited fully Parent entity owning all operating subs is US Corp. Only regional provider with SAS 70 Type II report (Deloitte) – Kiev, Minsk Budapest Experienced management team, 124 years of international experience Retention/equity plans (15% equity in options to 350+ staff) 75%+equity owned by US Fund or Individuals Highest level of transparency and accountability 2004 -2008 Revenues $ 161 All software fully legally licensed in all locations (SAM System) audited by several main vendors including MS) $ 114 DLA Piper and Deloitte approved transfer pricing and contractual structures for all operating entities $ 80 $ 29 $20+ million of real estate assets Profitable since founding in 1993 $ 40 2008 large capital investment into expansion for new locations to further improve scalability 2004 2005 2006 2007 ® 2009. EPAM Systems. All rights reserved. 2008

Results, Transparency and Corporate Governance Experienced, contemporary BOD and governance policies Arkadiy Dobkin, CEO EPAM Systems Karl Robb, EVP EPAM Systems Drew Guff, Siguler Guff Don Spencer, Siguler Guff Ross Goodhart, Siguler Guff Ø Audit, compensation committees Experienced, contemporary BOD and governance policies US Corp is head entity, US tax payer Debt Free Options registered in US $20 m + real estate assets Formal board committees for Comp &Audit Board observer from other investment institutions ® 2009. EPAM Systems. All rights reserved. Diversified, credible, reputable shareholder base Other 3% Four institutional investors 58% Management & Employees 39% 350+ employees. Non founders 21%+ 4 institutional; Siguler Guff, Euro. Ventures, Rencap, Da. Vinci. Funds from; Lombard Odier EBRD European Investment Fund (Luxembourg, part of EIB, European investment bank which is EU money IFC DEG (Deutsche Entwicklungsgesellschaft) TIAA-CREF is Teachers Insurance and Annuity Association - College Retirement Equities Fund

Client Revenue Distribution q 6 Clients with 100 -300 FTE teams 60% 56% 50% 40% q 80 active clients 47% 38% q Horizontal split: 45% 39% 37% 34% 33% 30% 25% 20% Top 5 Top 10 22% App development 54% § Maintenance / support 37% § Consulting 9% q Geographical split: § North America/Europe 52% / 48% q Industry split (ISV causes >100%): 10% 0% 2004 ü § 2005 2006 2007 2008 EPAM has most balanced distribution of revenues in industry/region ü Not heavily dependant on 3 or 4 large clients ü No specific 1 or 2 clients have unfair control or leverage on talent pool ® 2009. EPAM Systems. All rights reserved. § Financial Services 31% § ISV * 42% § Travel 9% § SAP 11% § Taxation 4% § Media & Publishing 13%

EPAM’s Recruitment and Staff Retention Advantage Recruitment & Selection: Setting the Bar High • Largest CEE recruitment team (29 dedicated staff and 13 support staff). Connected via EPAM’s Applicants Workbench System, integrated to PMC and e. Learning systems. 18, 000 resumes of people interviewed/tested and recorded and skills known. • People selected for Technical + Soft skills ( English, Consulting aptitude etc). High status in the Region. Training and Progression: Growth • All engineering staff have compensation containing a variable % (2030% variable compensation). Connected to their performance, their progress against targeted skills development and performance in their learning curriculum • Core technical + non-technical training. In-house to accredited courses (learning/coaching), External Certification. • Promotion to different levels (D 1, D 2 D 3, D 4 etc…)based on meeting actual skill measurements, language levels , project experience and mangers review. Retention initiatives: 5. 8 % Attrition • Largest company in region, most management opportunities • International career perspective, active career development • Health Insurance • Assisted favorable mortgages (below market rates with major bank) • Share options plan (nearly 350 participants @15%) • Day care / children supervision • Gym memberships ® 2009. EPAM Systems. All rights reserved.

EPAM Technology Leadership – Via Real Client Engagements Java EE . NET · Service Oriented Architecture · Standards-based Portals/Portlets · BPEL for Business Processes · Web development, AJAX, JSF, Flex, Flash, · Desktop apps (Swing/ Eclipse RCP) · Enterprise Service Bus platforms · Service Oriented Architecture · Windows Communication Foundation · Windows Workflow · Presentation Foundation, Silverlight · Mono for cross-platform. NET · Win. Forms, ASP. NET Net. Weaver · · Java Development Cross-Applications Migration and Certification Enterprise Portal / Web. Dynpro · BW / XI / MDM · ABAP · C#, . NET, SAP NW. NET. connector (VS. NET for Net. Weaver future) UNIX/C++ · · · · · Linux Solaris Free. BSD SCO Cluster (high availability) Posix C++/STL/Boost/ACE GCC/Sun Workshop TCP/UDP/SMTP EPAM maintains technology leadership as strategic development partner to main technology vendors! SAP, Microsoft, BEA Systems and ORACLE are major customers of EPAM. (SAP Since 1997, BEA & Microsoft since 2001, Oracle since 2003, Google and Novell since 2007). EPAM has over 500 engineers working under contract on R&D, Product Development and Product Customization for 4 of the most innovative technology providers. EPAM’s staff’s knowledge of these platforms, is “ahead of the curve”. Often trained on new technologies head of market release, having participated in development of these platforms, or having been in Beta or “Early Adopters” program as preferred development vendor. ® 2009. EPAM Systems. All rights reserved.

EPAM’s Service Delivery Practices Reengineering Re-factoring Porting & Migration Straight Re-factoring Straight Port or Migration Functional Uplift + Re-factoring Functional Uplift + Port or Migration Maintenance & Support Development Maintenance Bespoke Applications/ Solutions Commercial Software Products 2 nd & 3 rd Level Support Release Functionality 3 rd level Support Issue Patches 2 nd Level Support 3 rd Party Maintenance 24*7 3 rd Level Support Testing - Integrated into EPAM Service Line & Independent Projects Unit Testing – API Level, Coded Tests, Automated Running Functional Testing – Manual or Automated, Use Case, Use Scenario Compliance Performance Testing – Load, Resilience, Scalability Integration Testing – Internal Component/Services & External Integration Points ® 2009. EPAM Systems. All rights reserved.

Multiple SDLC Support & Flexible Engagement Models Fixed Price DNC (Dedicated Near. Shore Center or ODC) SLA Based Time & Materials Consulting T&M Elaboration, Fixed Price Construction-Transition. ® 2009. EPAM Systems. All rights reserved.

Special Competency Focuses (Cross Technology Platform) Capital Markets – Financial Services Travel & Hospitality Media & Entertainment Business Intelligence SAP ® 2009. EPAM Systems. All rights reserved.

Infrastructure and Tools, Methodologies: EPAM Project Management Center Production Systems as a Differentiating Factor § Unique SDLC toolset creating unmatched efficiency § Transparency of development team operation. Promotes collaboration § Combination of PMC & BEP increases quality § Significantly reduces overhead of communications and oversight for both clients and EPAM staff Key Production Systems § PMC (Project Management Center) § Optimises transparency, traceability, efficiency § § Multi-site, multi-project capabilities § Activity based SDLC; providing full traceability between artefacts (Requirements, Tests, Bugs, Issues, Risks, Documents) and actual activities § Project role based access control, comprehensive & flexible. Open to EPAM, client and 3 rd parties § Fully configurable workflow engine with built in notification/messaging, integrated into all modules § Extensive reporting and KPIs, highly configurable § All open web service based APIs to allow integration with open market tools BEP (Build Engineering Portals) § Provides quality management and KPI feed § PMC – Full System Development Lifecycle (SDLC) Project Management Tool Other tools include UPSA (Utilisation and Project Staffing Analyser), Applicant Workbench, Knowledge Management Portal, Training Portal, PAL (Project Asset Library), and many others EPAM’s delivery system is a differentiating factor ® 2009. EPAM Systems. All rights reserved.

Delivering Excellence in Software Engineering EPAM Systems, Ukraine Karl Robb EVP, EPAM Systems Inc. President EPAM Systems Europe. Fiskultury 28 Kyiv, Ukraine Phone: +38 067 449 2175 Karl_robb@epam. com http: //www. epam. com ® 2009. EPAM Systems. All rights reserved. ® 2008. EPAM Systems. All rights reserved