Sify Acquires Globe Travels, A Leading Player In The US-India Travel Space; Acquisition Signals Entry Into the Online Travel Business

This acquisition marks Sify's entry into the fast growing onlinetravel business, particularly e-ticketing, the category with highestrevenues and fastest growth in online ecommerce today. In a countrywith low PC penetration, Sify is particularly well-placed with 3300iWay cyber cafes across 153 cities from which more than a millionpeople accessed the Internet in the last quarter. Each of these iWaycyber cafes can operate as an e-store from where existing and newcustomers can make online travel arrangements or purchase e-tickets.Add to this some 200,000 broadband the popular online portalswww.sify.com, www.sifmax.in and the most popular site for globalIndians www.samachar.com, and this strategic acquisition can beleveraged well to provide value for Sify's users, while addingadditional revenue streams for the company.

Commenting on the acquisition, Mr R Ramaraj, CEO, Sify Ltd, said,"This strategic acquisition brings into our fold fast growing servicesthat enhance our online offerings to customers, and opens up newsources of revenue. We will also have the benefit of having Mr. HermanNoronha, CEO, Globe Travels, on board along with his team, who willadd value with their domain expertise."

Mr Herman Noronha said, "We are delighted to be a part of the Sifyonline services network. We decided to partner with Sify, after muchdeliberation, given the company's vision, range of online services,extensive reach across India and its technological capabilities".

With over 20 years of travel industry experience in both India andthe USA, Mr. Herman Noronha founded Globe Travels in the US in 1993,and built a leading and profitable enterprise in the travel businessfocused on the US-India market.

Mr Surya Mantha, Senior Vice President, Portals, said, "Theaddition of a travel portal is in line with our strategy of providingend-to-end services to Sify users. We

believe we are well positioned to emerge as leading player in theonline travel space with the unmatched reach afforded by the 3300 iWaycyber cafes across 153 cities, 200,000 home broadband customers, andSify's leading online properties including www.SifyMax.in,www.Sify.com and www.Samachar.com, the popular portal for globalIndians".

The potential for the growth of travel & ticketing arrangementsonline in India cannot be underscored. India today is considered to beone of the fastest growing airline markets in the world in terms ofnew airlines and the number of aircraft on order. According to theInternet & Mobile Association of India (IMAI), the number of IndianInternet users is slated to grow from the current 38.5 million to over100 million by 2007-08. As Internet users grow, the number of peoplemaking travel arrangements online is expected to increasesubstantially in future. IMAI has projected a total of $ 262 millionin online transactions for 2005-06, of which 57.85% or $ 152 millionis expected in the travel and travel related sectors. Airline ticketsales online are expected to account for $ 88 million, railway ticketsales will follow with $ 63 million. The growth of online sales of airtickets has been given a further impetus by the IATA deadline ofDecember 07 for 100% online ticketing in India, with the airlinespromoting online tickets with special fares and benefits, as well asalliances.

Online travel arrangements for global Indians returning to Indiacan also be leveraged on www.samachar.com, particularly in theUS-India sector. This segment is growing at 40% year on year, with theopportunity to provide other value added services around a visit toIndia.

About Globe Travels

Founded in 1993 by Herman and Vanitha Noronha, Globe Travels isone of the leading players in the India-US travel space.

In India, Globe Travels has an established presence in airticketing with e-ticketing and the capability to handle GlobalDistribution System (GDS) as well. With a 100,000 strong customer basein the US, Globe Travels is IATAN accredited, has an ARC membershipfor airline bill settlement, an Amadeus API booking engine, and GSAcontracts with 26 airlines that includes 11 key carriers catering tothe Indian segment.

About Sify Limited:

Sify is among the largest Internet, network and e-Commerceservices companies in India, offering end-to-end solutions with acomprehensive range of products delivered over a common Internetbackbone infrastructure. This Internet backbone reaches 171 cities andtowns in India. A significant part of the company's revenue is derivedfrom Corporate Services, which include corporate connectivity, networkand communications solutions, security, network management servicesand hosting. A host of blue chip customers use Sify's corporateservice offerings. Consumer services include broadband home access,dial up connectivity and the iWay cyber cafe chain across 153 citiesand towns. The company's network services, data center operations andcustomer relationship management are accredited ISO 9001:2000.

For more information about Sify, visit www.sifycorp.com.

Forward Looking Statements:

This press release contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Theforward-looking statements contained herein are subject to risks anduncertainties that could cause actual results to differ materiallyfrom those reflected in the forward-looking statements. Sifyundertakes no duty to update any forward-looking statements.

For a discussion of the risks associated with Sify's business,please see the discussion under the caption "Risks Related to OurBusiness" in the company's report on Form 6-K for the quarter endedDecember 31, 2005 which has been filed with the United StatesSecurities and Exchange Commission and is available by accessing thedatabase maintained by the SEC at www.sec.gov.