Indus International (IINT) 8-K Indus International Reports Fiscal Fourth Quarter and Full Year 2006 Results

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Contacts:
Indus International	Cameron Associates
Gary Frazier, Corporate Communications	Al Palombo, Investor Relations
770-989-4188,gary.frazier@indus.com	212-554-5488,al@cameronassoc.com

Indus International Reports Fiscal Fourth Quarter and Full Year 2006
Results

Company Achieves 75 Percent Growth in Adjusted EPS during Fiscal Year 2006

ATLANTA, May 5, 2006— Indus International, Inc. (NASDAQ: IINT), a leading Service Delivery Management (SDM)^™ solution provider, today announced the results of operations for its fiscal fourth quarter and year ended March 31, 2006, and provided guidance for future financial performance.

Total revenue for the fourth quarter of fiscal 2006 was $31.9 million, compared with $37.4 million in the same quarter last year and $34.7 million in the prior quarter. Revenue from software license fees totaled $5.1 million, compared to $8.9 million in the same period a year ago and $8.1 million in the prior quarter. Net income for the quarter was $2.1 million, or $0.03 per fully diluted share, compared to $2.5 million, or $0.04 per fully diluted share, in the same quarter last year and $2.9 million, or $0.05 per fully diluted share, in the prior quarter. Adjusted net income, which excludes restructuring benefits and settlement expenses, was $1.9 million, or $0.03 per fully diluted share, for the fourth quarter of fiscal 2006 compared to $2.4 million, or $0.04 per fully diluted share, in the same quarter last year and $3.0 million, or $0.05 per fully diluted share, in the prior quarter. A reconciliation of adjusted net income (loss) is included in the financial statements that are part of this press release.

Total revenue for fiscal 2006 was $133.2 million, compared with $142.2 million in fiscal 2005. On a full-year comparison, software license revenue was $26.0 million; support, outsourcing and hosting revenue was $59.7 million and consulting, training and other revenue was $47.5 million in fiscal 2006 compared to $31.9 million, $59.5 million and of $50.1 million, respectively, for fiscal 2005. It is important to note that license revenues for fiscal 2005 include a transaction for more than $5 million, which was closed in 2003 but not recognized until fiscal 2005 when the

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 2

company completed certain translation efforts for a customer in Japan. The company’s net income for fiscal 2006 totaled $8.2 million, or $0.14 per fully diluted share, compared with a net loss of $6.1 million, or $0.11 per fully diluted share, during the prior year. Adjusted net income, which excludes the restructuring benefits and settlement expenses, was $8.2 million, or $0.14 per fully diluted share, for fiscal 2006, reflecting a $3.8 million improvement over the adjusted net income of $4.4 million, or $0.08 per fully diluted share, for fiscal 2005.

Key Quarterly Financial and Business Highlights:

• Signed new clients in service delivery management space during the fourth quarter, including Johnson Controls Inc., Salt River Project and American Tower Corporation

• Won multiple successful license expansions during the fourth quarter in utility industry, including Greater Cincinnati Water Works and several municipalities

• Signed international license expansions in Central Europe during the fourth quarter at CEZ in The Czech Republic, as well as ENTP in Algeria, GE Plastics and Sanofi

Key Annual Financial and Business Highlights:

• Posted adjusted net income for the year, which excludes restructuring benefits and settlement expenses, of $8.2 million, or $0.14 per fully diluted share, reflecting an improvement of 75 percent over the prior year amount of $4.4 million, or $0.08 per fully diluted share

• Increased cash by $9.1 million over the fiscal year, which is net of a $2.5 million payment as a result of our lease buyout

• During fiscal 2006, increased licenses of Service Suite product by more than 200 percent from the prior year, including several strategic wins outside of the utility market

• Had successful license sales during fiscal year 2006 in Europe at CNE of Romania, La Compagnie Generale Des Matieres Nuclearires (COGEMA) and Danka, as well as a successful go-live and license expansion at PAKS in Hungary

• Continued development of business opportunity in Japan with a license expansion at Tokyo Electric Power Company (TEPCO) and the delivery of the translated product to an additional Japanese electric power company

• Maintained leadership in the utility market, particularly for nuclear power generation, as evidenced by a key license expansion during fiscal 2006 at Entergy, which will lead to the standardization of Indus products across their entire fleet of nuclear power plants

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 3

Executive Commentary
“Although the software license fees for the fourth quarter of fiscal year 2006 were not what we had expected, we did meet our annual projections on adjusted EPS and continued to make progress toward our business goals,” said Indus President and CEO Greg Dukat. “In all of our key business areas — utilities, international markets and commercial SDM opportunities — we remained focused and successfully executed our strategy. License transactions for our field service management product, Indus Service Suite, grew more than 200 percent for the year, far exceeding growth in the fast-growing field service market as a whole. So, while we face challenges in certain areas as all industry-leading companies do, we enter fiscal 2007 in excellent shape.”

Indus Chief Financial Officer Pat Henn added, “Our restructuring and cost control efforts over the past few years have allowed us to improve the profitability and financial position of the company significantly during fiscal 2006. We will continue to look for opportunities to improve our financial position as we execute our Service Delivery Management strategy.”

Business Outlook
For the fiscal year ending on March 31, 2007, the company currently projects adjusted net income, which excludes restructuring charges and benefits and stock option compensation expense under SFAS 123 (R), to fall within a range of $0.17 and $0.23 per fully diluted share. A reconciliation of adjusted net income (loss) is included as part of this press release. These projections assume the company will not be subject to income taxes and that there are no significant changes to the current general economic environment and the capital spending environments within our markets over the course of the year.

Investor Call
As previously announced, Indus will conduct an investor conference call to discuss the company’s results and other matters related to the company at 11:00 a.m. EST today. Investors may access the conference call over the Internet via the Company’s Website (investor.indus.com), or via telephone by dialing 800-938-0653 (International callers dial 973-321-1100). Those listening via the Internet should go to the site 15 minutes early to register, download and install any necessary audio software.

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 4

For those who cannot listen to the live broadcast, a replay will be available through May 19, 2006, by dialing 877-519-4471 (international callers dial 973-341-3080) and entering conference ID #7299211; or by going to the Company’s Website (Investor.Indus.com).

Like most companies, Indus will be taking live questions from securities analysts and institutional portfolio managers, but the complete call is open to all interested parties on a listen-only basis. Furthermore, individual investors may submit questions at any time prior to and during the call by sending an email to investorqa@indus.com.

About Indus International
Indus is a leading Service Delivery Management (SDM) solution provider, which help clients in a broad array of industries optimize the management of their customers, workforce, spare parts inventory, tools and documentation in order to maximize performance and customer satisfaction while achieving significant cost savings. Indus customer, asset and workforce management software products, professional services and hosted service offerings improve our clients’ profitability by reducing costs, increasing capacity and competitiveness, improving service to their customers, facilitating billing for services and ensuring regulatory compliance. Indus solutions have been purchased by more than 400 companies in more than 40 countries, representing diverse industries — including manufacturing, utilities, telecommunications, government, education, transportation, facilities and property management, consumer packaged goods and more. For more information, visit our Website at http://www.indus.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains statements, estimates or projections that are not historical in nature and that may constitute “forward-looking statements” as defined under U.S. federal securities laws. These statements include, but are not limited to, estimated operating results for fiscal year ending March 31, 2007, and sustaining leadership in our target markets. These statements, which speak only as of the date given, are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company’s historical experience and our expectations or projections. These risks include, but are not limited to, projected growth in the emerging service delivery management market, market acceptance of our service delivery management strategy, current market conditions for our products and services, our ability to achieve growth in our asset management and customer management offerings, market acceptance and the success of our new products and enhancements and upgrades to our existing products, the success of our product development strategy, our competitive position, the ability to establish and retain partnership arrangements, our ability to develop our indirect sales channels, changes in our executive management team, uncertainty relating to and the management of personnel changes, the ability to realize the anticipated benefits of our recent restructurings, timely development and introduction of new products, releases and product enhancements, current economic conditions, heightened security and war or terrorist acts in countries of the world that affect our business, and other risks identified from time-to-time in the Company’s SEC filings. Investors are advised to consult the Company’s filings with the SEC, including its 2005 Annual Report onForm 10-K filed with the SEC on June 13, 2005, and its subsequent quarterly reports onForm 10-Q filed with the SEC for a further discussion of these and other risks.

The information presented in this press release includes financial measures using accounting principles generally accepted in the U.S. (“GAAP”) and using adjustments to GAAP. In particular, we have shown certain GAAP measures adjusted to eliminate restructuring and settlement expenses as well as subsequent revisions of the estimates used in the determination of such charges which relate to excess lease costs for vacated space and severance costs in the periods discussed herein. We have presented such non-GAAP financial measures because we believe that they allow management to view trends and changes in operating performance excluding the effects of certain items, they are helpful for a period-to-period comparison of our results and are

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 5

frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies.

Indus is a registered trademark of Indus International Inc. Other company and product names may be trademarks of the respective companies with which they are associated.

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INDUS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)

	March 31, 2006			March 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	37,165		$	27,779
Restricted cash		2,793			194
Billed accounts receivable, net		14,020			16,844
Unbilled accounts receivable		6,257			14,293
Other current assets		3,683			3,672
Total current assets		63,918			62,782
Property and equipment, net		26,990			30,755
Capitalized software, net		3,760			5,014
Goodwill		7,442			7,442
Acquired intangible assets, net		9,066			10,536
Restricted cash, noncurrent		2,976			5,821
Other assets		681			427
Total assets	$	114,833		$	122,777
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable	$	767		$	767
Accounts payable		3,836			4,208
Accrued liabilities		14,051			19,213
Deferred revenue		30,233			34,911
Total current liabilities		48,887			59,099
Income taxes payable		2,553			3,137
Mortgage and other liabilities		13,312			20,128
Stockholders’ equity:
Common stock		59			58
Additional paid-in capital		163,218			165,280
Treasury stock, at cost		—			(4,681	)
Deferred compensation		(480	)		—
Accumulated deficit		(113,142	)		(121,322	)
Accumulated other comprehensive income		426			1,078
Total stockholders’ equity		50,081			40,413
Total liabilities and stockholders’ equity	$	114,833		$	122,777

Indus International, Inc. 3301 Windy Ridge Parkway Atlanta Georgia 30339 Tel: 770.952.8444 Fax: 770.989.4231

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 7

INDUS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	March 31,						March 31,
	2006			2005			2006			2005
Revenue:
Software license fees	$	5,104		$	8,850		$	25,971		$	31,866
Services:
Support, outsourcing and hosting		15,442			15,276			59,694			59,543
Consulting, training and other		11,387			13,254			47,491			50,760
Total revenue		31,933			37,380			133,156			142,169
Cost of revenue:
Software license fees		568			488			2,041			3,737
Services:
Support, outsourcing and hosting		3,860			3,678			14,474			16,975
Consulting, training and other		9,432			9,593			37,398			38,995
Total cost of revenue		13,860			13,759			53,913			59,707
Gross margin		18,073			23,621			79,243			82,462
Operating expenses:
Research and development		6,741			8,711			29,357			31,956
Sales and marketing		6,286			8,190			27,234			30,619
General and administrative		3,373			4,062			15,187			15,125
Restructuring and settlement (benefits)/expenses		(153	)		(118	)		(24	)		10,430
Total operating expenses		16,247			20,845			71,754			88,130
Operating income (loss)		1,826			2,776			7,489			(5,668	)
Other income (expense), net		147			(232	)		529			(285	)
Pre-tax income (loss)		1,973			2,544			8,018			(5,953	)
Provision (benefit) for income taxes		(89	)		32			(162	)		112
Net income (loss)	$	2,062		$	2,512		$	8,180		$	(6,065	)
Net income (loss) per share:
Basic	$	0.04		$	0.04		$	0.14		$	(0.11	)
Diluted	$	0.03		$	0.04		$	0.14		$	(0.11	)
Shares used in computing per share data:
Basic		58,410			57,456			57,951			57,259
Diluted		61,512			58,131			60,195			57,259

Indus International, Inc. 3301 Windy Ridge Parkway Atlanta Georgia 30339 Tel: 770.952.8444 Fax: 770.955.2977

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Indus Announces Fiscal Fourth Quarter 2006 Results, page 8

INDUS INTERNATIONAL, INC.
RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
(In Thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	March 31,						March 31,
	2006			2005			2006			2005
Reconciliation of adjusted net income (loss) *:
Net income (loss)	$	2,062		$	2,512		$	8,180		$	(6,065	)
Restructuring and settlement (benefits)/expenses		(153	)		(118	)		(24	)		10,430
Income tax effect		—			—			—			—
Adjusted net income*	$	1,909		$	2,394		$	8,156		$	4,365
Adjusted net income per diluted share*	$	0.03		$	0.04		$	0.14		$	0.08

* The information presented above includes financial measures using accounting principles generally accepted in the U.S. (“GAAP”) and using adjustments to GAAP. In particular, we have shown certain GAAP measures adjusted to eliminate restructuring and settlement (benefits)/expenses, as well as subsequent revisions of the estimates used in the determination of restructuring charges, relating to excess lease costs for vacated office space and severance costs. We have presented such non-GAAP financial measures because we believe that they allow management to view trends and changes in operating performance excluding the effects of certain items, they are helpful for a period-to-period comparison of our results and are frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies.

Indus International, Inc. 3301 Windy Ridge Parkway Atlanta Georgia 30339 Tel: 770.952.8444 Fax: 770.989.4231

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