Exhibit 99.1

FOR RELEASE at 8:00 a.m. EST
Friday, February 27, 2004 Contact: A. Emmet Stephenson, Jr.
Chairman
Phone: (303) 399-2400 Ext. 0

StarTek, Inc. Fourth Quarter EPS Up 20%

DENVER, CO–StarTek, Inc. (NYSE:SRT) today reported net income for the fourth quarter of 2003 of $8.0 million, which is up 22% from $6.5 million, excluding a non-cash investment impairment charge in the fourth quarter of 2002. Fully diluted earnings per share rose 20% to $0.54 from $0.45 last year on more shares outstanding. Revenue in the fourth quarter of 2003 was $66.1 million compared with $66.5 million in the same quarter last year. During the fourth quarter of the prior year, the company recorded an impairment charge of $6.2 million for an “other than temporary” decline on its investment portfolio resulting in net income of $2.7 million, or $0.18 earnings per fully diluted share.

For the year ended December 31, 2003, net income for the year grew 17% to $22.2 million or $1.52 earnings per fully diluted share compared to $19.0 million, or $1.32 earnings per fully diluted share, excluding the investment impairment charge. Revenue increased 11% to $231.2 million for 2003 compared to $207.9 million for last year. Including investment impairment charges of $6.2 million in prior year 2002, net income for the year ended December 31, 2002 was $15.2 million, or $1.05 earnings per fully diluted share.

Chairman A. Emmet Stephenson, Jr. said, “We are very pleased with the 2003 results, a year of continued growth for StarTek, as revenue, operating income, net income, and earnings per share reached all time record levels for the year. Our margins further improved due to a better mix of services provided and additional productivity gains as a result of our innovative process management. In the fourth quarter, our business process management services were particularly strong which was reflected in both gross margins and operating profits.”

“We successfully opened four new facilities last year, which increased capacity significantly, to meet the growing demand for our outsourced services. As the economy has improved, our clients have responded with renewed emphasis on improving service to their customers and reducing costs, both of which lead to increased demand for StarTek’s service offerings.”

Company Profile

StarTek, Inc. is a leading provider of business process outsourced services, which consist of business process management and supply chain management services. StarTek provides services from eighteen operational facilities, including five in Colorado, five in Canada, two in Europe and one each in Illinois, Louisiana, Oklahoma, Tennessee, Texas, and Wyoming. The Company’s clients are primarily in the telecommunications and computer software industries. StarTek also services clients in the computer hardware, consumer products, cable, entertainment, internet and e-commerce industries. Please visit our web site at www.startek.com.

Forward Looking Statements

The matters regarding the future discussed in this news release may include certain forward-looking statements that involve specific risks and uncertainties. In accordance with the Private Securities Litigation Reform Act of 1995, the following are important risks and uncertainties that could cause StarTek’s actual results to differ materially from those expressed or implied by any such forward-looking statements. These include, but are not limited to, loss of its principal clients, concentration of its client base in a few select industries, highly competitive markets, risks related to its contracts, decreases in numbers of vendors used by clients or potential clients, lack of success of StarTek’s clients’ products or services, considerable pricing pressure, risks relating to fluctuations in the value of StarTek’s investment securities portfolio, risks associated with advanced technologies, inability to grow its business, inability to effectively manage growth, dependence on qualified employees and key management personnel, potential future declines in revenue, lack of a significant international presence, and risks relating to conducting business in Canada and the United Kingdom. Readers are encouraged to review Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results and all other disclosures appearing in the Company’s Form 10-K and 10-Q filings and the Form 8-K filed on February 17, 2004 with the Securities and Exchange Commission.

STARTEK, INC. AND SUBSIDIARIES

Consolidated Balance Sheets
(dollars in thousands)
(unaudited)

	December 31,			December 31,
	2002			2003
ASSETS
Current assets:
Cash and cash equivalents	$	13,143		$	5,955
Investments		44,022			41,812
Trade accounts receivable, less allowance for doubtful accounts of $816 and $790 in 2002 and 2003, respectively		37,232			43,388
Inventories		1,463			1,720
Income tax receivable		335			805
Deferred tax assets		4,300			2,250
Prepaid expenses and other assets		958			907
Total current assets		101,453			96,837
Property, plant and equipment, net		38,797			54,563
Long-term deferred tax assets		110			1,743
Other assets		61			464
Total assets	$	140,421		$	153,607
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,156		$	8,917
Accrued liabilities		7,235			10,310
Current portion of long-term debt		2,221			26
Other		462			358
Total current liabilities		21,074			19,611
Long-term debt, less current portion		4,261			78
Other		492			918
Stockholders’ equity:
Common stock		142			144
Additional paid-in capital		50,060			53,917
Cumulative translation adjustment		(123	)		446
Unrealized gain (loss) on investments available for sale		(738	)		1,462
Retained earnings		65,253			77,031
Total stockholders’ equity		114,594			133,000
Total liabilities and stockholders’ equity	$	140,421		$	153,607

STARTEK, INC. AND SUBSIDIARIES

Condensed Consolidated Income Statements
(dollars in thousands, except per share data)
(unaudited)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2002			2003		2002			2003
Revenue	$	66,458		$	66,131	$	207,864		$	231,189
Cost of services		50,975			46,852		157,005			171,401
Gross profit		15,483			19,279		50,859			59,788
Selling, general and administrative expenses		6,430			7.790		22,562			28,489
Operating profit		9,053			11,489		28,297			31,299
Net interest income and other		974			1,198		1,986			4,048
Loss on impaired investments		(6,210	)		—		(6,210	)		—
Income before income taxes		3,817			12,687		24,073			35,347
Income tax expense		1,153			4,720		8,907			13,149
Net income (A)	$	2,664		$	7,967	$	15,166		$	22,198
Weighted average shares of common stock (B)		14,147,888			14,310,632		14,140,765			14,243,273
Dilutive effect of stock options		270,190			473,104		244,624			379,793
Common stock and common stock equivalents (C)		14,418,078			14,783,736		14,385,389			14,623,066
Earnings per share:
Basic (A/B)	$	0.19		$	0.56	$	1.07		$	1.56
Diluted (A/C)	$	0.18		$	0.54	$	1.05		$	1.52
Pro forma results excluding loss on impaired investment:
Historical income before income taxes	$	3,817		$	12,687	$	24,073		$	35,347
Add back loss on impaired investment		6,210			—		6,210			—
Income before income taxes		10,027			12,687		30,283			35,347
Income tax expense		3,511			4,720		11,265			13,149
Net income, excluding loss on impaired investment	$	6,516		$	7,967	$	19,018		$	22,198
Earnings per share, excluding loss on impaired investment:
Basic	$	0.46		$	0.56	$	1.34		$	1.56
Diluted	$	0.45		$	0.54	$	1.32		$	1.52

STARTEK, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(unaudited)

	2002			2003
Operating Activities
Net income	$	15,166		$	22,198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,220			10,045
Deferred income taxes		1,399			(1,218	)
(Gain) loss on sale of assets		2			(30	)
Loss on investment impairments		6,210			—
Changes in operating assets and liabilities:
Sales of trading securities, net		1,085			1,537
Trade accounts receivable, net		(11,047	)		(6,156	)
Inventories		1,151			(257	)
Prepaid expenses and other assets		305			(352	)
Accounts payable		(822	)		(2,239	)
Income taxes payable		(2,149	)		482
Accrued and other liabilities		621			3,397
Net cash provided by operating activities		21,141			27,407
Investing Activities
Purchases of investments available for sale		(45,337	)		(45,054	)
Proceeds from disposition of investments available for sale		32,214			49,226
Purchases of property, plant and equipment		(5,877	)		(23,867	)
Proceeds from disposition of property, plant and equipment		38			131
Net cash used in investing activities		(18,962	)		(19,564	)
Financing Activities
Stock options exercised		1,681			2,907
Principal payments on borrowings, net		(5,420	)		(7,368	)
Dividends on common stock		—			(10,420	)
Net cash used in financing activities		(3,739	)		(14,881	)
Effect of exchange rate changes on cash		421			(150	)
Net decrease in cash and cash equivalents		(1,139	)		(7,188	)
Cash and cash equivalents at beginning of year		14,282			13,143
Cash and cash equivalents at end of year	$	13,143		$	5,955