2002 COGNIZANT ANNUAL REPORT To our stakeholders: During 2002, Cognizant continued to achieve record financial and opera- tional results, re-asserting our company’s position as a leader in the high- growth offshore IT services industry. With a deep understanding of the needs of the clients we serve and the industries in which we operate, Cognizant has advanced the advantage of offshore by enabling larger organizations to achieve greater bottom-line and strategic business benefits from their information technology assets. The range and depth of our vertically oriented expertise; our ability to lead clients through change programs that deliver bottom-line results; our ability to quickly ramp up huge teams of top IT professionals; and the quality, speed and cost-effectiveness of our work have made Cognizant the onsite/offshore partner of choice for a growing number of Fortune 1000 companies.  Consistent with our reputation of staying ahead of the curve both techno- logically and by maintaining a powerful client-focused corporate culture, Cognizant has pioneered the 4th Generation services model. This partner- ship-centric model gives Cognizant a distinct competitive advantage in the offshore outsourcing industry. In this new age of offshore, the top man- agement of industry-leading companies is driving larger, more important offshore initiatives, and they are interested only in strategic partners with proven capabilities. Because the stakes are much higher now – with  relationships beginning with more strategically central work and quickly ramping up to annual run rates of $5 million to $30 million or more – these companies want top-quality providers that are able to deliver multi- million dollar savings fast by quickly moving large volumes of work off- shore while driving complex IT and business transformation. Cognizant is one of only a few offshore providers with a proven track record of meeting these demands with stellar results. (cont’d) 1 4th Generation: Advancing the Advantage of Deeper Partnerships 98 99 00 01 02 $229,086 $177,778 $137,031 $58,606 $88,904 98 99 00 01 02 $45,198 $35,620 $26,128 $8,918 $16,645 98 99 00 01 02 $165,481 $98,792 $66,116 $32,616 $45,461 98 99 00 01 02 6,168 3,926 3,164 1,560 2,220 Revenue Operating Income Shareholders’ Equity Employees (in thousands) (in thousands) (in thousands)