PeopleSupport Announces Receipt of Request to Delay Closing of Merger Transaction Up to October 31, 2008

PeopleSupport, Inc. (Nasdaq:PSPT) (the "Company”), a leading offshore business process outsourcing (BPO) provider, today announced that it has received a request from Essar Services (Mauritius) ("Essar Services”) to schedule the closing and effective date of the merger by which Essar Services will acquire PeopleSupport for a date no later than October 31, 2008. The Company is currently evaluating this request by Essar Services.

About PeopleSupport

PeopleSupport, Inc. (Nasdaq: PSPT), is a leading offshore BPO provider that offers customer management, transcription and captioning and additional BPO services for global enterprise clients. From its world-class service delivery centers in the Philippines and Costa Rica, PeopleSupport offers high performance services with deep industry domain knowledge and expertise, resulting in customizable and best practice solutions. By delivering high quality services from offshore locations, PeopleSupport’s service delivery centers reduce costs, improve performance and increase revenues. A majority of PeopleSupport’s services are performed in the Philippines, where PeopleSupport is one of the largest outsourcing companies, employing approximately 8,000 college-educated, fluent English speaking personnel. Headquartered in Los Angeles, California, with approximately 8,500 employees worldwide, PeopleSupport serves clients in a variety of industries, such as travel, consumer, financial services, healthcare, insurance, technology, telecommunications, entertainment and education. For more information, visit www.peoplesupport.com.