Sify Technologies Third Quarter 07-08 Revenues at $38.38 Million

EBITDA at $5.03 million, Net Profit at $1.55 million

CHENNAI, India, Jan. 22 /PRNewswire-FirstCall/ -- Sify Technologies
Limited (Nasdaq: SIFY), a leader in Consumer Internet and Enterprise Services
in India with global delivery capabilities, announced today its consolidated
US GAAP results for the third quarter ended 31st December 2007.
Performance Highlights:
* Sify reported revenues of $38.38 million for the third quarter ended
31st December 07, 2.8% higher than the previous quarter, and 8.7%
higher compared to the same period last fiscal.
* Sify's Profit before tax & exceptional items was $2.23 million versus
$1.09 million in the previous quarter. Post exceptional items, the Net
Profit after tax for the quarter was $1.55 million as compared to the
previous quarter's Net Loss of $1.26 million.
* Adjusted EBITDA was $5.03 million as compared with $3.94 million in the
preceding quarter. Adjusted EBITDA for the same period last year was
$4.14 million.
* Sify ended the quarter with a cash balance of $42 million after capital
expenditure of $5.94 million during the quarter.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies, said,
"We have done well to grow sequentially, driven by growth in our Enterprise
businesses. The restructuring of our Consumer businesses into a single
integrated platform for access and delivery of multiple content services
including ecommerce, eLearning, entertainment and online games is underway,
and will take approximately four to six months to complete. This includes new
technologies that will allow us to scale as the demand for rich graphic and
video content grows. We will re-launch the Consumer business when ready to
scale our revenues. To meet demand, we are investing in expanding our network,
as well as building a new data center in Mumbai. We are also planning to
invest in a data center in Delhi, as well as investing in land in Chennai
where Sify's headquarters, with sophisticated data centers and network command
centers, will be developed."
Mr. MP Vijay Kumar, Sify CFO, said, "Revenues, EBITDA and net profit have
all shown growth based on operations on the back of aggressive growth in
enterprise services. As we move to building an integrated platform for
consumer services delivery, we will review non-performing cyber cafés and home
broadband access locations. Investments for growth are being made to meet
growing demand from enterprise customers for both connectivity and hosting
services. The Consumer business will also benefit as new cities open up for
cybercafes and broadband services."

Summarised Results : (Unaudited)
(In $ million, all translated at $1 = Rs. 39.41 )

Description Quarter Quarter Year
ended ended ended
31 Dec 30 Sep 31 Mar
2007 2006 2007 2007

Corporate services 26.23 20.55 24.44 80.28
Retail internet access 9.38 11.63 10.27 46.85
Interactive services 1.40 1.92 1.26 6.67
Others 1.37 1.20 1.37 4.42
Sales Revenue 38.38 35.30 37.34 138.22

Cost of Revenues (21.74) (18.94) (21.09) (73.81)
Gross Margin 16.64 16.36 16.25 64.42

Gross Margin (%) 43.4% 46.4% 43.5% 46.6%

Selling, General and
Admin Expense (13.93) (12.96) (13.73) (51.67)

EBITDA share for Affiliates 2.32 0.74 1.42 2.56

Adjusted EBITDA * 5.03 4.14 3.94 15.30

Reconciliation items:
Depreciation & amortization (3.54) (3.00) (3.60) (13.24)
Below EBITDA Share of
Affiliates (0.25) (0.26) (0.33) (0.78)
Net interest / Other Expenses 0.96 0.90 1.09 3.72
Forex Gain / (Loss) 0.04 (0.52) (0.02) 0.21

Net Profit /(loss) Before
Exceptional item and tax 2.23 1.25 1.09 5.22

Exceptional item
(Legal Charges) (0.34) - (1.77) (1.44)
Tax (0.53) - (0.36) 1.75
Net income / (loss) - After
tax before Minority Interest 1.37 1.25 (1.04) 5.53

Minority Interest 0.18 (0.20) (0.22) (0.78)

Net income / (loss) -
After minority interest 1.55 1.05 (1.26) 4.75

Adjusted EBITDA* /
(loss) $/ADR 0.12 0.10 0.09 0.36
Net income / (loss) before
Minority Interest $/ADR 0.03 0.03 (0.02) 0.13

Non Financial Indicators Dec-07 Sep-07 Jun-07 Mar-07

Iway
Subscribers active 3
months (in 000's) 773 1,009 1,108 1,086
No of Iways 3,848 3,831 3,713 3,638
Cafe Additions 74 161 164 130
No of Cities 164 164 163 158

Broadband
Subscribers (in 000's) 215 211 208 216
No of CTOs 1981 2,033 2,027 1,958
ARPU 337 340 337 349

Technology
No of PoPs 348 236 221 188

Enterprise Solutions:

Business Wins:
1. Large MPLS VPN contracts from Barclays bank, Esselpropack and OnMobile;
2. Substantial MPLS network augmentation contracts from Kotak Life,
National Stock Exchange and Vishal Retail;
3. Large e-Learning contract signed with insurance firm ICICI Prudential;
4. Large Document Management contract signed with insurance firm Reliance
Life; and
5. Large Data Center Hosting contract signed with Indian Overseas Bank.

During the quarter, we strengthened our position in the Banking, Financial
Services & Insurance (BFSI) segment for the services offered by us.
Business Alliances:
We also entered into a strategic alliance with a leading System Integrator
in the country for white- labeled Data Center Hosting services.
Another significant development is with Saba, a world leader in learning
management solutions, as their alliance partner in India.
International Services:
Infrastructure Management Services:
During the quarter, the Sify Service Delivery Center became operational in
Dubai, which now gives us the ability to service local managed services
customers from Dubai.
eLearning:
* Awarded contracts worth $1.5 million by a Global IT Software Major for
developing software-related curriculum for global audiences. Work to be
accomplished within 9 months.
* Awarded a $1.1 million contract by a Global Development Agency for
developing eLearning programs for their worldwide staff and partner
agencies. Work to be executed within the next 8-9 months.
* Setting up an Innovation Lab for research and development of
futuristic, Immersive Learning products and services. Lab to be
operational by Q4, 2007-08.

Consumer Services:

Broadband Access:
Wireless Broadband: One of the key initiatives of during the quarter was
the deployment of wireless broadband services on a pilot basis in Bangalore.
The pilot tested the feasibility, quality and market acceptance of the service
with two hundred subscribers. Feedback from the customers has been
satisfactory enough to view this as an alternate last mile model, especially
in areas not covered by Sify's broadband services currently.
Sify Broadband Partners to offer travel services: Sify Broadband partners
(cable Television Operators) can now be a one stop travel solution providers
in their neighborhood. This has been made possible due to Sify's alliance with
leading travel portals such as Yatra.com and Redbus. Through this arrangement
the Broadband partner can now book air tickets as well as bus tickets apart
from railway tickets through the IRCTC alliance.
Customer Retention: Several initiatives by Sify's Customer Care team, as
well as by the Last Mile Technology team, brought about a significant
improvement in the quality of service delivery. Customer satisfaction due to
these measures has helped in reducing Net Churn by 13% over the previous
quarter.
Sify Anywhere launched in Hyderabad: Sify Anywhere, a service that
combines the collective strength of Sify and enables a user to access the Net
as a broadband account from home, from any of the over 3500 iWay cyber cafes,
as a dialup connection from hotel rooms and even Wi-Fi was launched in
Hyderabad.
Expansion to other cities: New cities, including many small towns, such as
Udumalpet and Warangal in the South, Muzaffarpur in the East, Jalgaon in the
West and Bahadurgah in the North were added to the Sify Broadband network this
quarter.
Tie-Up With F-Secure -- Sify tied up with F-Secure, a security Solutions
Provider to provide Data Security Services to Broadband customers.
Public Access:

Extended hours -- Over 250 iWay cafes now function over extended hours.
Value Added Service Sign-Ups
* A Unique Initiative with a leading BPO for online recruitment in Delhi,
Mumbai & Pune using the cyber cafes was signed up.
* Red Bus: Bus ticketing services through iWays. 400 locations covered in
South/ West & North covered; and
* Yatra Travels: Strategic tie-up for offering Air Ticketing Services on
Low Cost Airlines/ Global Domestic Airlines. Marketing Promotion
launched: 'Buy 2 -- Fly 3.'

Portals:
Sify.com brought television audiences online to engage actively with each
other, through interactive tools and communities around the popular reality
show Jhalak Dikhla Jaa. Sify continued its strong association with Sony
Entertainment Television to offer online videos and interactive tools like
message boards and polls for high involvement around the show through the
website www.jhalak.sify.com. Over 3 million visitors visited the website and
the association also increased Sify's brand visibility amongst the Television
audience with active promotion on the Sony channel.
Sify.com entered into a close association with Actor Madhavan for his
socially conscious movie "Evano Oruvan" where Sify's video Web site had an in-
film placement. Sify.com also created the official website for the movie
(www.evanooruvan.sifymax.com) offering synopsis, photo galleries, downloads,
interviews and even video clips from the movie. The website offered contests
through which Sify.com users could meet actor Madhavan at a launch party
hosted for the movie.
Continuing its endeavor to provide a platform for fans to interact with
their favourite stars, Sify.com offered fans of actors Asin and Nayanthara a
chance to meet the stars and interact with them.
Building on the euphoria and renewed interest in cricket following India's
win of the World Twenty-20 series, Sify Sports offered comprehensive coverage
of Pakistan's tour of India and also video highlights of the ICL series. Sify
Sports has revamped its product offerings through a new online score card
offering new features like highlights, schedule, commentary, graphs etc.
Sify.com ensured that its users ended 2007 with an overview of the hits
and misses of the year through the Sify.com year ender called Looking Back,
which featured the events and important happenings of the year in the fields
of sports, business, news and entertainment. The special feature also listed
expectations for 2008 and was very popular amongst users who also voted the
charismatic Shah Rukh Khan as the newsmaker of the year.
About Sify
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 348 cities and towns in India. A significant part of
the company's revenue is derived from Corporate Services, which include
corporate connectivity, network and communications solutions, security,
network management services, enterprise applications and hosting. A host of
blue chip customers use Sify's corporate service offerings. Consumer services
include broadband home access, dial up connectivity and the iWay cyber cafe
chain across 164 cities and towns. Sify is recognized as an ISO 9001:2000
certified service provider for network operations, data center operations and
customer support, and for provisioning of VPNs, Internet bandwidth, VoIP
Solutions and integrated security solutions, and BS7799 certified for Internet
Data Center operations. Sify.com the consumer portal of Sify has sub portals
like www.samachar.com, www.walletwatch.com, www.sifymax.com and
www.chennailive.in, www.bangalorelive.in, www.mumbailive.in,
www.hyderabadlive.in the city based live video on the web. The content is
available in 5 Indian languages, which include Hindi, Malayalam, Telugu,
Kannada and Tamil.
For more information about Sify, visit www.sifycorp.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. The forward-looking
statements contained herein are subject to risks and uncertainties that could
cause actual results to differ materially from those reflected in the forward-
looking statements. Sify undertakes 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 Our Business" in the
company's report on Form 20-F for the year ended March 31, 2007 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.
For further information please contact:

David Appasamy
Investor Relations
Sify Technologies Limited
91-44-2254 0770 Ext. 2013
Email: david_appasamy@sifycorp.com

Truc N. Nguyen
Investor Relations
The Global Consulting Group
646-284-9418
Email: tnguyen@hfgcg.com

SOURCE Sify Technologies Limited

Investor Relations, David Appasamy, +91-44-2254-0770 Ext. 2013,
david_appasamy@sifycorp.com, for Sify Technologies Limited; or Truc N. Nguyen
of The Global Consulting Group, +1-646-284-9418, tnguyen@hfgcg.com, for Sify
Technologies Limited