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<SEC-DOCUMENT>0000950134-06-013384.txt : 20060719
<SEC-HEADER>0000950134-06-013384.hdr.sgml : 20060719
<ACCEPTANCE-DATETIME>20060718175754
ACCESSION NUMBER:		0000950134-06-013384
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060718
FILED AS OF DATE:		20060719
DATE AS OF CHANGE:		20060718

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIFY LTD
		CENTRAL INDEX KEY:			0001094324
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27663
		FILM NUMBER:		06967931

	BUSINESS ADDRESS:	
		STREET 1:		TIDEL PARK, 2ND FLOOR
		STREET 2:		NO. 4, CANAL BANK ROAD, TARAMANI
		CITY:			CHENNAI 600 113
		STATE:			K7
		BUSINESS PHONE:		91442540770

	MAIL ADDRESS:	
		STREET 1:		TIDEL PARK, 2ND FLOOR
		STREET 2:		NO. 4, CANAL BANK ROAD, TARAMANI
		CITY:			CHENNAI 600 113
		STATE:			K7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SATYAM INFOWAY LTD
		DATE OF NAME CHANGE:	19990901
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>f22162e6vk.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e6vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>United States<BR>
Securities and Exchange Commission</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 6-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Report of Foreign Private Issuer<BR>
Pursuant to Rule&nbsp;13a-16 or 15d-16 of the<BR>
Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">For July&nbsp;18, 2006
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Commission File Number 000-27663
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>SIFY LIMITED</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Translation of registrant&#146;s name into English)</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Tidel Park, Second Floor<BR>
No.&nbsp;4, Canal Bank Road, Taramani<BR>
Chennai 600 113, India<BR>
(91)&nbsp;44-254-0770<BR>
(Address of principal executive office)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F or Form 40-F. Form&nbsp;20F <FONT face="Wingdings">&#254;</FONT> Form&nbsp;40 F <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(1). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation&nbsp;S-T Rule&nbsp;101(b)(7). Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b) under the
Securities Exchange Act of 1934. Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If &#147;Yes&#148; is marked, indicate below the file number assigned to registrant in connection with Rule
12g3-2(b). Not applicable.
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;2.02. Results of Operations and Financial Condition.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;9.01. Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Signatures</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">Exhibit&nbsp;Index</A></TD></TR>
<TR><TD colspan="9"><A HREF="f22162exv99w1.htm">EXHIBIT 99.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;2.02. Results of Operations and Financial Condition." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.02. Results of Operations and Financial Condition.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;18, 2006, Sify Limited (&#147;Sify&#148;) announced its U.S. GAAP results for the quarter ended
June&nbsp;30, 2006. A copy of the press release is attached hereto as Exhibit&nbsp;99.1. The information
and documents furnished in this report shall not be deemed to be &#147;filed&#148; for purposes of Section&nbsp;18
of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that
section.
</DIV>
<!-- link2 "Item&nbsp;5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers." -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of
Principal Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;18, 2006, Sify announced that Mr.&nbsp;R. Ramaraj, its Managing Director and Chief
Executive Officer had resigned from those positions, and had decided to leave Sify to pursue other
interests. Sify also announced that Mr.&nbsp;Raju Vegesna has been named as Sify&#146;s Managing Director
and Chief Executive Officer, to replace Mr.&nbsp;Ramaraj.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Raju Vegesna has served as a Director of Sify since November&nbsp;2005. Mr.&nbsp;Vegesna is a
Silicon Valley entrepreneur who founded several leading edge technology companies, including
ServerWorks Corporation, acquired by Broadcom in 2001. After that acquisition, and post a brief
stint with Broadcom, Mr.&nbsp;Vegesna founded and currently serves as CEO and Chairman of ServerEngines,
LLC, a rapidly growing Silicon Valley-based company engaged in the development of innovative
enterprise computing products. He holds a BS in Electrical Engineering from the University of
Bangalore and holds an MS in Computer Engineering from Wayne State University, USA, and holds
several patents in Microprocessor and Multiprocessor technology. He is also a Director of Server
Engines LLC and Nulife Corp. Infinity Capital Ventures, LP, owns approximately 42% of Sify and Mr.
Raju Vegesna is a nominee of Infinity Capital Ventures, LP. On December&nbsp;20, 2005, the Company
divested 26% of its holding in Sify Communications Limited, or 4,680,000 shares, to M/s Infinity
Satcom Universal (P)&nbsp;Ltd for a sale consideration of Rs.139,810. This was a related party
transaction because Mr.&nbsp;Raju Vegesna, is the brother of Mr Ananda Raju, the owner of Infinity
Satcom Universal (P)&nbsp;Ltd.
</DIV>
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Exhibits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1 Press release issued by Sify Limited, dated June&nbsp;30, 2006.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "Signatures" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Signatures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: July&nbsp;18, 2006
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SIFY LIMITED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;   /s/ Durgesh Mehta
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Durgesh Mehta&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "Exhibit&nbsp;Index" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit&nbsp;Index</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Press Release dated July&nbsp;18, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>f22162exv99w1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibit&nbsp;99.1</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PRESS RELEASE</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">S<B>IFY Reports U.S. GAAP Results for the First Quarter ended 30</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP> <B>June&nbsp;2006:</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>Sify Q1 Net Profits jump 200% to $ 1.36 Million</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>Revenues grow by 29.1% over same quarter last year</B></DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Chairman Mr.&nbsp;Raju Vegesna has been named as Managing Director &#038; Chief Executive Officer. Mr.<BR>
Vegesna brings Silicon Valley experience to post.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Chennai, India, Tuesday, 18<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> July&nbsp;2006: Sify Limited (Nasdaq National Market: SIFY), a
leader in consumer Internet and Enterprise Services in India with global delivery capabilities,
announced today its consolidated US GAAP results for the first quarter ended 30th June&nbsp;2006, and
further announced that Chairman of the Board Mr.&nbsp;Raju Vegesna has been named as Sify&#146;s Managing
Director &#038; Chief Executive Officer, replacing Sify&#146;s Managing Director and Chief Executive Officer,
Mr.&nbsp;R. Ramaraj, who has resigned from those posts to pursue other interests and opportunities. Mr.
Ramaraj is in discussions with Sify and Mr.&nbsp;Vegesna to ensure a smooth transition and has agreed to
be available to work as a consultant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Q1 2006-07 Performance Highlights:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sify reported revenues of $ 28.74&nbsp;million for the quarter ended 30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> June
2006, 29.1% higher than the quarter ended 30<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> June&nbsp;2005. The sequential growth
in revenues over the previous quarter was 2.5%.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sify&#146;s cash profit, in Adjusted EBITDA terms, for the quarter was $4.03&nbsp;million, an
increase of $3.71&nbsp;million compared to the same quarter last year. See below for a
reconciliation of Adjusted EBITDA to Sify&#146;s U.S. GAAP operating results.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sify&#146;s net profit for the quarter under U.S. GAAP was $ 1.36&nbsp;million compared to a net
loss of $2.14&nbsp;million in the first quarter of the previous fiscal year. The company
reported net profits of $0.46&nbsp;million in the previous quarter.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sify ended the quarter with a cash balance of $ 55.27&nbsp;million after capital
expenditures of $6.7&nbsp;million and the acquisition of Globe Travels, USA, during the fourth
quarter.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Mr.&nbsp;Raju Vegesna, Board Chairman and newly appointed MD&#038;CEO, Sify Limited, said, </B>&#147;We are
pleased to report a net profit of $ 1.36&nbsp;million for the first quarter with revenues growing by
29.1% over the June quarter 2005 to $28.74&nbsp;million. We were also able to build momentum for the
year by growing our revenues for the first quarter over the previous quarter. We continue to gain
recognition for our
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">services in India and internationally, and lead the market across businesses. We are well poised to
continue growing them with new initiatives, adequate cash reserves and our cutting edge IP
expertise&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Mr.&nbsp;Durgesh Mehta, Chief Financial Officer, Sify Limited, said, </B>&#147;During the last quarter we
invested in a new Data Center in Bangalore to meet growing demand. We also completed the
acquisition of Globe Travels, USA, to enhance revenue earning opportunities for our portals and the
iWay Cyber Cafe chain. We intend to continue our growth trajectory by investing in such
opportunities as well as in extending our Network Infrastructure and reach to service growing
demand from both the Enterprise and Consumer segments&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Summarized Results (In $&nbsp;million,<BR>
all translated at $1 = Rs. 45.87)

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Quarter</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">Description</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Quarter ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">ended</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">Year ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 0px solid #000000">30-June</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 0px solid #000000">31-Mar</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2" style="border-bottom: 0px solid #000000">31-Mar</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2">2006</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Enterprise services</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55.18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Access Media</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.49</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Portals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Others</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sales revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102.07</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15.16</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12.69</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(14.60</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(55.26</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Selling, general and admin expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.06</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9.69</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(11.32</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(42.55</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDA share of affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Expenses incl forex gain (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Reconciliation items:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation &#038; amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.68</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.69</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10.39</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Below EBITDA share for Affiliates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.19</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.05</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.46</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Profit &#150; business / assets sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income / (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2.14</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3.26</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjusted EBITDA * / loss $ /ADR</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net Income / (loss) $/ ADR</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.06</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.09</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 18pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Adjusted EBITDA represents net income (loss)&nbsp;before interest, income tax, depreciation and
amortization, impairment of intangible assets, and results involving discontinued operations or non- operating assets. Please see
&#147;Non-GAAP Financial Information&#148; below.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Note: the company reports the summarized results for every Quarter based on the exchange rates prevailing on the last day of the Quarter
under review. The results presented above reflect results in Indian Rupees translated at $1= Rs 45.87. At the end of the last Quarter the
rate at which the Rupee results were translated was $1= Rs 44.48</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The results for the quarter were impacted by an increased charge of $ 0.62&nbsp;million in ESOP
accounting from intrinsic value method to fair value method, in compliance with SFAS 123 R.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Enterprise Services:</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Business wins: </B>Key business wins in Network Services included VPN services for Bombay Dyeing,
Fanuc, Globus, ICICI Webtrade, Mitsubishi, Park Hotels, Suzlon, Yesbank, and repeat orders from GE,
Vishal Retail and others. We have also won a large order from an international alliance partner for
VPN services for a large FMCG major in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New Level 4 Data Centre at Bangalore</B>: The new Data Center in Bangalore has been set up in response
to the rising demand for hosting of primary and disaster recovery Data Centers. This is Sify&#146;s
third Data Center in the country after Mumbai and Chennai. Pantaloon awarded Sify the contract to
host and manage its Data Center operations, in addition to the Network and Security services that
Sify provides to Pantaloon, further strengthening the relationship. Sify has also been commissioned
to host the core banking application of Andhra Bank for the next five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>SifyAssure: </B>The second phase of the multi phase details risk assessment for a large carrier in the
Middle East was concluded. Key wins included consulting engagement from FI Serv and Ismart and
infrastructure implementation orders from HDFC Standard Life, HSBC, Mahindra and Pantaloon. The
relationship with a Middle East Bank was strengthened with projects won on VOIP, Data Center and
ISO, BS7799 consultancy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Application Services</B>: The Application Services team continued its thrust on Customized Web
Application, Document Management System, Messaging and Online Testing. The key wins included
development of customized web application for Transcontinental Eservice and Document Management
contracts from Unitech and Aviva Life.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Safescrypt &#151; </B>The surge in the Digital Certificate business in India is expected to continue to grow
rapidly due to the launch of the MCA21 initiative by the Ministry of Company Affairs that mandates
the signing authorities of companies Chartered Accountants and Company secretaries, to digitally
sign the documents. Engagements for secure application were received from ICICI Lombard, IFFCO,
Kotak Bank, Kotak Life and Tata TeleServices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Access Media:</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>iWay Cyber-Cafe Growth: </B>The iWay chain grew to 3,400 cafes (of which 34 are owned by Sify and the
rest franchised). The company is taking a number of steps to capitalize on the distribution reach
of the iWays to diversify the revenue streams and these are expected to fructify in the next few
quarters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This includes a new initiative that offers Internet learning classes, for those who have never
accessed the Internet, for a fee. This has been tested in Coimbatore and is being rolled out to
other such non-metro centers. The other area of focus is in e-Ticketing, travel services and other
eCommerce services through the iWays. Booking of railway tickets from iWays is already one of the
fastest growing activities. Airline ticketing, hotel &#038; holiday bookings etc will follow with the
launch of such online services by Sify&#146;s portal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Intense competition from telcos created pressure on volumes and prices in the Internet telephony
business, and this impacted the revenues. The division is expanding the Internet telephony business
into the ITES sector and has signed up over 80 customers over the last few quarters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sify iWays Tie Up With Vijay TV: </B>Sify iWays tied up with Vijay TV to enable auditions of Kalakka
Povadhu Yaaru, the Tamil version of the Great Indian Laughter Show. Following the tie-up, aspiring
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">contestants from all over Tamilnadu and Bangalore walked into Sify iWays to record their audition
capsules for the show.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Online Games: </B>A3 &#150; the MMORPG game increased its registered user count to over 50,000 with
continued promotion of online games through the Game Dromes and iWays. Sify is also working with a
leading online game publication to create awareness of online games to grow the market in India.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Sify Broadband Growth: </B>Subscribers to Sify&#146;s high speed Internet access to homes grew to over
191,000 subscribers. Increased focus on the broadband business by Telcos has in turn resulted in
decreased margins in this segment while also resulting in subscriber churn. The division is now
working on increasing the range of services that can be offered to these subscribers like Internet
telephony to increase average revenues per user. There are now around 1700 Cable TV Operator
franchisees in 96 cities &#038; towns across the country.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Portals:</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenues grew approximately 17% on a sequential basis and 96% over the same quarter last year,
driven by advertising, sponsorships and ecommerce. This includes revenues from the Globe Travels
acquisition amounting to $ 0.13&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Acquisition of Globe Travels: </B>Sify acquired Globe Travels, an Iowa based organization engaged in
the business of online travel and travel related business in the US- India segment, in a deal that
includes cash of $ 2.5 Million, stock options and performance pay outs. Online travel is the
fastest growing and highest revenue generating category in the eCommerce space in India. Sify
expects to leverage its large NRI audience on samachar.com, and the distribution reach of its iWays
Cyber Cafe chain, to grow the online travel business through this acquisition on both the
international and domestic fronts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Highlights of the FIFA World Cup: </B>Sifymax.com presented the highlights of the FIFA World Cup 2006
in English, Hindi, Kannada, Tamil, Telugu and Malayalam. Extensive World Cup coverage included the
Maradona column, videos, highlights, features, picture galleries, contests, blogs and more, with
content available in text, images and video. Message boards allowed users to discuss World
Cup-based topics with other football fans</div>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Coverage of the French Open and Wimbledon was offered to users with Sifymax being the Exclusive
Broadband Partner for TWI/IG in India Special sections on each event featured highlights,
interviews, round ups and behind the scenes footage. A live scorecard and golden moments of the
2005 tournament completed the experience for tennis fans.</div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Launch of <B>www.Mumbailive.in</B>: The city-centric broadband website for the city of Mumbai was launched, showcasing original Mumbai-centric video content created exclusively for an online audience. The
videos will focus on city news and events, entertainment, celebrities, lifestyle, commerce and
politics, anchored by Net Jockeys (NJs), a new concept successfully introduced in India by Sify.
The broadband website also features live video feeds from the Siddhivinayak temple and other
locations so that devotees can have a live darshan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Users can also message greetings through Short Message Service (SMS)&nbsp;to their friends who are using
the site that will scroll across the home page on a ticker. Information and news about Mumbai is
available as it happens. Thousands of visitors logged on to watch the latest updates on the serial
blasts that ripped through Mumbai.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Tie up with Ananda Bazaar Patrika: </B>The division has partnered with the Kolkata based Ananda Bazaar
Patrika (ABP)&nbsp;to power its online store- www.thetelegraphstore.com. Following this tie-up, the
first of the ABP Group&#146;s shopping portals, The Telegraph Store, went live on June&nbsp;6, 2006. Besides
a wide range of
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">products from electronics to clothes, gifts and books on display, The Telegraph Store will also
feature exciting bargain offers on select products under the &#147;Offer of the Day&#148; and &#147;Price
Surprise&#148; sections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Launch of broadband websites for film stars: </B>Sifymax.com launched the first ever official broadband
website www.reemasen.sifymax.com for popular Kollywood, Telugu and Bollywood actress, Reema Sen.
Reema Sen has rapidly become a youth heartthrob and popular actress, and this platform will bring
fans closer to their star. This is the first time that a film star is launching an official
broadband website. More stars are expected to launch their sites on SifyMax with a number of them
already initiated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>New advertisers: </B>Sify signed on new advertisers including Clear Trip, GE Money, Malaysia Tourism,
National Geographic, Thomson Learning, Smash Hits, SP Jain Center of Management, Thums Up, Travel
Guru, Wallet 365, X-Box and Yahoo.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In conjunction with the earning release, Sify Limited will host a conference call at 9:00 am EDT
hosted by Mr.&nbsp;Raju Vegesna, Chairman of the Board and newly appointed Managing Director and Chief
Executive Officer, and Mr.&nbsp;Durgesh Mehta, Chief Financial Officer. Interested parties may
participate in the conference call by dialing 877-407-8031 (U.S. or Canada) or 201-689-8031
(international). The conference call will simultaneously be broadcast live over the Internet at
www.sifycorp.com or www.vcall.com. Please allow extra time prior to the call to visit the site and
download the streaming media software required to listen to the Internet broadcast. The online
archive of the Web cast will be available shortly after the conference call, or investors can
listen to the replay by dialing 877-660-6853 or 201-612-7415 and entering account number 286 and
conference ID number 206593. Please allow for some time post conference call to access the archive
of the Web cast.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About Sify Limited:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sify is among the largest Internet, network and e-Commerce services companies in India, offering
end-to-end solutions with a comprehensive range of products delivered over a common Internet
backbone infrastructure. This Internet backbone reaches 171 cities and towns in India. A
significant part of the company&#146;s revenue is derived from Corporate Services, which include
corporate connectivity, network and communications solutions, security, network management services
and hosting. A host of blue chip customers use Sify&#146;s corporate service offerings. Consumer
services include broadband home access, dial up connectivity and the iWay cyber caf&#233; chain across
154 cities and towns. The company&#146;s network services, Data Center operations and customer
relationship management are accredited ISO 9001:2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For more information about Sify, visit www.sifycorp.com.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-GAAP Financial Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our presentation of financial information above includes a presentation of Adjusted EBITDA.
Adjusted EBITDA is neither an Indian GAAP measure nor a U.S. GAAP measure and should not be
considered in isolation or as an alternative to net income as an indicator of operating performance
or as an alternative to cash flow as a measure of liquidity. Our presentation above also includes
a reconciliation of Adjusted EBITDA to net income/(loss), which we believe to be the most
comparable financial measure under U.S. GAAP. Adjusted EBITDA is presented because it is a basis
upon which our management assesses our financial performance and because we believe some investors
find it to be a useful tool for measuring a company&#146;s financial performance and ability to fund operating obligations and capital expenditures.
Investors evaluating our financial performance or analyzing our discounted cash flows based on
Adjusted EBITDA should consider financing activities and non-recurring charges that are not
included in the calculation. While EBITDA or derivations thereof are frequently reported by many
companies as a
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV  style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">supplemental measure of operations, it is not necessarily comparable to other
similarly titled captions of other companies due to potential inconsistencies in the method of
calculation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Forward Looking Statements</B>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All statements included or incorporated by reference in this release, other than statements or
characterizations of historical fact, are forward- looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements are based on our current expectations, estimates
and projections about our industry, management&#146;s beliefs, and certain assumptions made by us.
Forward-looking statements can often be identified by words such as &#147;anticipates,&#148; &#147;expects,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;predicts,&#148; &#147;believes,&#148; &#147;seeks,&#148; &#147;estimates,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;would,&#148;
&#147;potential,&#148; &#147;continue,&#148; similar expressions, and variations or negatives of these words. In
addition, any statements that refer to expectations, projections or other characterizations of
future events or circumstances, including any underlying assumptions, are forward-looking
statements. These forward-looking statements speak only as of the date hereof, and are based upon
the information available to us at this time. Such information is subject to change, and we will
not necessarily inform you of such changes. These statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions that are difficult to predict.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Therefore, our actual results could differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors. Sify undertakes no duty to update any
forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For a discussion of the risks associated with Sify&#146;s business, please see the discussion under the
caption &#147;Risks Related to Our Business&#148; in the company&#146;s report on Form 20-F for the year ended
March&nbsp;31, 2006 which has been filed with the United States Securities and Exchange Commission and
is available by accessing the database maintained by the SEC at www.sec.gov. We undertake no
obligation to revise or update publicly any forward-looking statement for any reason.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>For further information please contact:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>

    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:40px; text-indent:-0px"><B>Mr.&nbsp;David
Appasamy</B></div>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Truc Nguyen</B></TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:40px; text-indent:-0px"><B>Investor
Relations</B></div>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Investor Relations</B></TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:40px; text-indent:-0px"><B>Sify
Limited</B></div>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>The Global Consulting Group</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:40px; text-indent:-0px"><B>91-44-2254 0770 Ext. 2013
</B></div></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>646-284-9418
</B></TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:40px; text-indent:-0px"><B>Email:
<u>david_appasamy@sifycorp.com</U></b></div></TD>
<TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Email: tnguyen@hfgcg.com</b></td>
</tr>

<!-- End Table Body -->
</TABLE>
</DIV>



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