Beijing, China | May 30, 2006 – VanceInfo, one of the early pioneers and leading players in the software outsourcing industry in China, announced today it has closed the Series B venture capital financing round led by Sequoia Capital US and Sequoia Capital China. Joining the round were existing investors DCM-Doll Capital Management and Legend Capital. This cooperation marks the first direct investment abroad to China by Sequoia Capital US. This latest round of investment will be used for VanceInfo’ s aggressive expansion plans, increase its pipeline for a strategy of mergers and acquisitions, and will further accelerate its go-to-market efforts.

“Sequoia Capital is a highly distinguished venture capital firm with the expertise and connections to drive value added capabilities for our company. This investment is an endorsement of VanceInfo’ s solid vision and strategy, as well as our excellent range of quality IT services and products,” said Chris Chen, CEO of VanceInfo. “We are very pleased by the support of Sequoia Capital. We are seeing strong growth and look forward to working with Sequoia Capital to bring our company to its next level of development.”

“The IT outsourcing industry in China has continued to develop at a very rapid pace. VanceInfo is the largest Chinese IT outsourcing provider to US and Europe. Its 11 years of client serving experiences, continuous rapid growth, and an open-minded, cross-cultural management team, are the primary reasons for our investment in VanceInfo,” said Kui Zhou, Principal of Sequoia Capital China. “We believe that VanceInfo has the potential to achieve many breakthroughs in the coming years and we are excited to be able to witness these successes.”

Global marketing intelligence firm IDC estimates that China’ s software outsourcing exports reached $600 million in 2004 and forecasts its growth to increase to $4.7 billion by 2009, or a CAGR of 51%.

“With its large staff and soup-to-nuts solutions for end users and software vendors, VanceInfo has taken a market leadership position among China’ s outsourcing firms,” said MR Rangaswami, Managing Director of the Sand Hill Group, a leading authority on offshoring. “VanceInfo’ s numerous million dollar ODCs (offshore development centers) are unique in the China market,” added Erran Carmel, Professor at American University and author of the book, Offshoring Information Technology.

“Bolstered by an increasingly strong software-outsourcing market in China, VanceInfo has executed exceedingly well since our initial investment,” said Rob Theis, a DCM General Partner. “Its long roster of brand-name customers, strong customer satisfaction and high level of sustained technology innovation reaffirm that its vision and business objectives are precisely aligned with the direction of the market.”

VanceInfo is the leading China-based provider of outsourced business software solutions to Global 2000 firms. The Company’ s client roster includes Blue Chip names such as IBM, Oracle, Microsoft, TIBCO, Hewlett-Packard, General Electric, Matsushita, Sony and Roche. VanceInfo’ s reputation is based on its ability to deliver world class IT solutions to clients worldwide, maximizing their return on investment and giving them The Power to Focus.

The Power to Focus is VanceInfo’ s accelerated software development and business optimization process, giving client organizations the power to focus on core services and have peace of mind. VanceInfo offers scale, efficiency, quality, and an expert pool of international talent and management to deliver a high degree of performance to clients worldwide.

ABOUT VANCEINFO
Pioneering the way since 1995, VanceInfo is the leading China-based provider of IT outsourcing services to Asia Pacific, North American and European clients as well as multinationals in China.

VanceInfo offers expertise in a wide range of fields in High Tech, Financial Services, Manufacturing, Retail and Distribution and Telecommunications. We deliver world-class services to global clients in enterprise solutions, application development and maintenance, BI/DW, software product development, QA and testing and localization services, maximizing their ROI and giving our clients The Power to Focus. Our client roster includes IBM, Oracle, NEC, Nokia, HP, TIBCO, and many other leading Fortune 1000 companies.

To meet clients’ increasing demands for seamless global delivery and support, VanceInfo, headquartered in Beijing, has built offices and branches in Shanghai, Shenzhen, Dalian, Wuhan, Nanjing, Hangzhou, Tokyo, San Francisco and Seattle in the US to provide one-stop and real-time services. With a wealth of experience and expertise, VanceInfo fulfilled customers’ needs, and was recognized in the overseas market. For more information on VanceInfo please visit: http://www.vanceinfo.com/