LEAWOOD, Kan. and MUMBAI, India -- Euronet Worldwide, Inc. (Nasdaq: EEFT) says that it is entering the India market with a multi-year ATM outsourcing agreement to operate 450 ATMs for one of India's largest and fastest growing private banks, which was not named in a news release.

According to the release, the bank plans to nearly double its current ATM network and add new services to its existing ATMs. Euronet will deploy 200 new bank-owned ATMs in India's largest cities, and will also take over the driving of the bank's existing 250 machines.

The Indian market comprises more than 50 major banks, 300 million bank accounts and approximately 7,500 ATMs. When fully implemented, Euronet's outsourcing project will represent 4 percent to 5 percent ofthe country's total ATM market, according to the release.

According to NCR Corporation, the number of ATMs in the country has doubled each year for the past four years. As the banking industry continues to expand, the number of ATMs is expected to rapidly increase as well.

"India has great potential, and our initial investment has already generated our largest outsourcing contract to date," said Michael J. Brown, Euronet Worldwide chairman and chief executive, in the release. "We established a four-person team, who together have more than 50 years experience in the financial services sector in India and Asia. An outsourcing contract of this magnitude is a testament to Euronet's credibility in a new market."

"India's financial institutions and mobile operators are open to outsourced solutions, as they aggressively expand their customer bases and strive to increase the number of electronic transactions," said Anthony Grandidge, Euronet Worldwide vice president, Asia Pacific Region.

In addition to the ATM outsourcing contract, Euronet has signed another contract for ATM and mobile recharge services with Hutchison Max Telecom, which operates under the Orange brand in Mumbai. Hutchison has approximately 1.5 million mobile customers in India, with 60 percent using prepaid accounts.

Through agreements Euronet has signed with two banks to implement recharge services on their ATMs, Hutchison customers will be able to use approximately 1,000 ATMs to purchase prepaid airtime for their mobile phones. The banks' customers also will be able to register for mobile recharge services at ATMs, which will allow them to add prepaid airtime to their Hutchison accounts directly from their mobile phones.

"The single-point gateway to multiple banks that Euronet will provide is critical to the India mobile telecom market," said Suresh Reddy, Hutchison Max Telecom general manager. "Customer convenience is one of our top priorities and using Euronet Electronic Recharge services to distribute prepaid airtime is a key to achieving that goal."

India has 22 mobile operators that support approximately nine million mobile phone customers. Sixty percent of Indian mobile users have prepaid accounts, and 80 percent of all new subscribers use prepaid services. According to the Cellular Operator Association of India, the country's mobile phone users will grow to 50 million by 2006, including more than 38 million prepaid accounts.