IBS Group Recommends Dividends for the Financial Year Ended March 31, 2010

MOSCOW, October 19, 2010 - On October 8, 2010, the Directors of the IBS Group Holding Limited ("IBS
Group" or "the Company"), have recommended a dividend of US$0.15 per share to
be paid for the financial year ended March 31, 2010 in order to further allow
Company's shareholders to participate in its strong financial performance.

The distribution is subject to approval by shareholders at the Annual
General Meeting on November 2, 2010. Based on the Group's net income of
US$13.9 million for FY'2009, the payout ratio should amount to 24.8%. The
record date for dividends is October 22, 2010.

This is the first dividend announcement by the Company since FY'2006.

Anatoly Karachinsky, President & CEO of IBS Group commented: "Our
re-established dividend payment follows steady recovery and improved
profitability of our business in 2009-2010 and confirms once again our
commitment to the best corporate governance practices. IBS Group remains the
only public Russian IT company to pay dividends, and we expect to continue
with regular distributions going forward subject to stable business
conditions".

About IBS Group

IBS Group is the leading Russian IT company. Through two principal
subsidiaries, IBS IT Services and Luxoft, it provides a wide variety of
information technology services, such as business and IT consulting, business
applications implementation, IT outsourcing and software development. IBS
Group is headquartered in Russia and has business operations in Russia,
Canada, Germany, Romania, Poland, Switzerland, the UK, Ukraine, the USA,
Vietnam and Singapore. IBS Group employs more than 6,000 people worldwide. In
2009 financial year, IBS Group reported US GAAP revenues of $505,1m.

IBS Group's Global Depositary Receipts (GDRs) are listed on the Open
Market at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters:
IBSGq.DE). IBS Group is majority-owned by management; institutional investors
hold 34% of the Group's share capital.

For more information about IBS Group:

Please visit www.ibsgr.com

    Please contact:

    Gamid Kostoev
    Director, Corporate Communications
    Tel.    +7(495)967-8080
    Mobile  +7(903)720-6078
    Fax     +7(495)967-8081
    E-mail  gkostoev@ibs.ru

    Dmitry Ivanov
    Director, Investor Relations
    Tel.    +7(495)967-8087
    Mobile  +7(916)618-4034
    Fax     +7(495)967-8099
    E-mail  dvivanov@ibs.ru

Please contact: Gamid Kostoev, Director, Corporate Communications, Tel. +7(495)967-8080, Mobile +7(903)720-6078, Fax +7(495)967-8081, E-mail gkostoev at ibs.ru; Dmitry Ivanov, Director, Investor Relations, Tel. +7(495)967-8087, Mobile +7(916)618-4034, Fax +7(495)967-8099, E-mail dvivanov at ibs.ru