Issue of Equity

India Outsourcing Services PLC
28 September 2005

28 September 2005





                         India Outsourcing Services plc

                     ('India Outsourcing' or 'the Company')



                                Placing for Cash





The Board of India Outsourcing announces that the Company has placed 3,125,000
new Ordinary Shares of 1p each, representing 17.24% of the total shares in
issue, with Wheddon Limited at a price of 8p per Ordinary Share to raise
£250,000 before costs.



Application has been made for the new Ordinary Shares, which will rank pari
passu with existing shares in issue, to be admitted to trading on AIM, and
admission is expected to become effective on 30 September 2005.





For further information:


India Outsourcing Services plc                       Tel: [phone]
Amit Pau, Chief Executive
Haresh Kanabar, Chairman

Panmure Gordon & Co                                  Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications                              Tel: [phone]
Mark Court





                      This information is provided by RNS
            The company news service from the London Stock Exchange