Revenues of $94.4 million, up 30% over first quarter 2011, led by strong growth in Europe of 62%;

Reports GAAP EPS growth of 50% and Non-GAAP EPS growth of 29% over first quarter 2011

EPAM Systems, Inc. (NYSE: EPAM), a leading software engineering and IT outsourcing (ITO) provider with development centers across Central and Eastern Europe (CEE), today reported the following financial results for its quarter ended March 31, 2012:

• Quarterly revenues increased to $94.4 million, up 29.6% compared to the year-ago quarter.
• GAAP income from operations was $13.8 million, an increase of 16.7% compared to $11.8 million in the first quarter of 2011.
• Non-GAAP income from operations was $16.1 million, an increase of $3.4 million, or 26.5%, from $12.8 million in the first quarter of 2011.
• Quarterly diluted earnings per share (EPS) on a GAAP basis was $0.27, compared to $0.18 in the year-ago quarter, or a 50% increase.
• Quarterly diluted EPS on a non-GAAP basis was $0.31, compared to $0.24 in the year-ago quarter, or a 29.2% increase.
• Net headcount for IT Professionals increased 25.9% to 7,310 as of March 31, 2012, from 5,806 as of March 31, 2011.

“We are very pleased with our consistently strong performance and successful start to the year,” said Arkadiy Dobkin, CEO and President of EPAM Systems. “We continue to see strong demand for our expertise in delivering high quality software-engineering services and complex, mission-critical industry solutions. We are pleased with the trends we are seeing in structural growth in IT outsourcing in Europe, and are gaining traction with clients that are diversifying their risk profile by expanding global delivery to Central and Eastern Europe.”

The Company used $4.7 million in cash from operations in the first quarter of 2012, compared to generating $0.4 million in the first quarter of 2011. As of March 31, 2012 the Company had cash and cash equivalents of $112.7 million.

Financial Outlook

• Second quarter 2012 revenues of between $100 million and $102 million, representing a growth rate of 25% to 27% over same quarter last year.
• Second quarter 2012 non-GAAP diluted EPS is expected to be in the range of $0.30 to $0.32, representing 15% to 23% growth. These non-GAAP diluted EPS estimates are based on an estimated 2012 fiscal year weighted average of 46.3 million diluted shares.
• Full year 2012 revenue to be between $411 million and $418 million, with non-GAAP net income growth in the range of 10% to 12%.

Conference Call Information

The Company will hold a conference call to discuss its first quarter results at 8:00 a.m. Eastern this morning. A live webcast of the call may be accessed over the Internet from the Company’s Investor Relations website at investors.epam.com. Participants should follow the instructions provided on the website to download and install the necessary audio applications. The conference call also is available by dialing 877-941-4774 (domestic) or 1-480-629-9760 (international) and entering passcode 4533967. Participants should ask for the EPAM Systems first quarter earnings conference call.

A replay of the live conference call will be available approximately one hour after the call. The replay will be available on the Company’s website or by dialing 1-877-870-5176 (domestic) or 1- 858-384-5517 (international) and entering the replay passcode 4533967. The telephonic replay will be available until Tuesday, May 15, 2012.

About EPAM Systems

Established in 1993, EPAM Systems, Inc. (NYSE: EPAM) is a leading global IT services provider with delivery centers throughout Central and Eastern Europe. Headquartered in the United States, EPAM employs over 7,300 IT professionals and provides services to clients worldwide using a global delivery model through its client management and delivery operations in the United States, Belarus, Hungary, Russia, Ukraine, UK, Germany, Kazakhstan, Sweden, Switzerland and Poland.