Satyam Infoway Limited Releases Consolidated US GAAP Operating Results for the Fiscal Quarter Ended Sept. 30, 2000.

Business Editors

CHENNAI, India--(BUSINESS WIRE)--Oct. 10, 2000

Continues Robust Growth and Consolidation of Market Leadership

Satyam Infoway Limited (Nasdaq National Market:SIFY), India's premier Internet and eCommerce company, released today its unaudited consolidated US GAAP results for the fiscal quarter ended Sept. 30, 2000. These consolidated financial statements include the results of SIFY and its subsidiaries, including IndiaWorld Communications Ltd.

Company Performance

During the quarter ended Sept. 30, 2000 SIFY recorded significant growth in all three of its businesses, consisting of Internet access, portal content and corporate services.

The financial highlights are as follows:

-- Re-launch of the consumer portal as www.sify.com and its emergence as one of
India's leading portal networks with 105 million page views during the month of
September 2000, as against 12 million page views in September 1999, and 80
million page views in June 2000. The page views for the June and September 2000
quarters include properties acquired with IndiaWorld Communications

-- The successful re-launch and increase in page views was achieved with a
greatly enhanced portal with a well researched user interface for better
navigation, new channels and services, enhancements to existing channels and a
contemporary new design.

-- SIFY to acquire US based leading India-interest online shopping mall
www.Indiaplaza.com in an all-stock deal involving 480,000 ADSs.

-- Acquisition of www.kheladi.com for $1.3 million, 5% to be paid in cash and
95% through the issuance of equity shares.

-- Re-launch of www.Khel.com as the complete sports site for Indians covering
cue sports, tennis, golf, chess, hockey and football besides cricket.

-- Tie up with Landmark, one of India's leading bookstores, to offer over
200,000 books under 2,500 categories for the online bookstore at www.sify.com.


Operating Results for the Quarter ended September 30, 2000
In Millions


                   Three months ended    Six months ended   Year ended
                     September 30,         September 30,     March 31,
                   1999    2000   2000   1999    2000   2000    2000
                    Rs      Rs     US$    Rs      Rs     US$     Rs
                  ------  ------  ----  ------  ------  -----  ------
Revenues:         127.42  435.16  9.45  208.23  756.84  16.43  671.02

Other income        0.50   68.17  1.48    0.50  125.72   2.73    8.56

Total income      127.92  503.33 10.93  208.73  882.56  19.16  679.58

Cost of Revenues   68.21  273.49  5.94  107.11  470.29  10.21  293.73

Selling, general
and administrative
expenses           98.28  450.34  9.78  161.12  754.95  16.39  582.64

Equity in losses
of affiliates         --   12.30  0.27     --    17.72   0.38     --

EBITDA            (38.57)(232.80)(5.06) (59.50)(360.40) (7.82)(196.79)

Depreciation       26.79   94.05  2.04   48.09  159.38   3.46  125.89

Amortisation of
goodwill              --  328.63  7.13    --    415.62   9.02  115.99

Amortisation of
deferred stock
compensation
expense             0.28   28.41  0.62    0.48   47.28   1.03   20.63

Taxes                 --     --    --      --    (0.33) (0.01)  (1.48)

Minority interest     --     --    --      --    (0.38) (0.01)  (1.80)

Interest
(expense)/income,
 net              (11.27)  69.00  1.50  (20.59) 188.73   4.09   74.12

Net Loss          (76.91)(614.89)(13.35)(128.66)(793.24)(17.22)(381.90)
-0-

Business Performance:

Access:

-- The company's Internet access business had robust subscriber

growth with more than 320,000 subscribers in September 30,

2000 as compared to more than 87,000 subscribers in September

30, 1999, for a growth of 268% net. This also represents a 60%

growth over the more than 200,000 subscribers in June 30,

2000. Recent initiatives to stimulate the market, such as the

launch of the unlimited Internet access product (branded as

'UnLtd'), have had very good results in terms of growth in

subscribers. This has necessarily resulted in lower revenues

per user, offset to some extent by lower cost of bandwidth.

Online Portal:

-- Re-launch of the consumer portal as www.sify.com and its emergence as one of
India's leading portal networks with 105 million page views during the month of
September 2000, as against 12 million page views in September 1999, and 80
million page views in June 2000. The page views for the June and September 2000
quarters include properties acquired with IndiaWorld Communications

-- The successful re-launch and increase in page views was achieved with a
greatly enhanced portal with a well researched user interface for better
navigation, new channels and services, enhancements to existing channels and a
contemporary new design.

-- SIFY to acquire US based leading India-interest online shopping mall
www.Indiaplaza.com in an all-stock deal involving 480,000 ADSs.

-- Acquisition of www.kheladi.com for $1.3 million, 5% to be paid in cash and
95% through the issuance of equity shares.

-- Re-launch of www.Khel.com as the complete sports site for Indians covering
cue sports, tennis, golf, chess, hockey and football besides cricket.

-- Tie up with Landmark, one of India's leading bookstores, to offer over
200,000 books under 2,500 categories for the online bookstore at www.sify.com.

Corporate Services:

-- The corporate services business continued strong growth with

growing revenue streams. E-business products and services

include sectors such as banking, securities brokerage,

manufacturing, retail, media and telecom. Today the Company's

corporate services business is moving up the value chain with

assignments in e-Strategy and consulting.

-- Launch of state-of-the-art Hosting Center in Mumbai, the first

of its kind in India spread over 20,000 square feet with

international standards of design and specifications.

-- Launch of NetBuilder, a powerful tool for creating transaction

oriented market place or portal for eMarkets.

-- Launch of www.AutoWebex.com, a portal for the Automotive

Industry that aims to serve as a 'Business Efficiency Enabler'

providing global reach.

-- Signing of MOU with US Business Network (owner and operator of

www.meetchina.com) for setting up a virtual market place that

will concentrate on cross border trade between Indian

companies and those of developed economies.

-- Acquisition of majority stake in eChem.com Limited, a B2B

portal focused on facilitating transactions for the Chemicals

Industry.

-- Acquisition of www.Formsindia.com, India's leading portal with

a comprehensive database of forms for free downloading and

printing by the general public and corporates.

New Business Initiatives:

-- Formation of 100% subsidiary for Education services -- Satyam

Education Services Limited to provide online learning in

India.

-- Formation of 100% subsidiary for B2B services -- Satyam

Webexchange Ltd., to establish a platform for vertical B2B

portals by Industry segment.

-- Formation of 100% subsidiary for IT enabled and related

services -- Satyam Serwiz.com Ltd. for processing and delivery

of IT enabled and related services to global customers.

-- Formation of 100% subsidiary for security related services --

Safescrypt Ltd. for providing security products from Verisign,

the world leader in digital authentication and certification,

to enable corporates, websites and individuals to conduct

secure e-commerce on the Net.

-- SESL's acquisition of majority stake in Eduempire.com (P) Ltd.

which is in the business of integrating educational

communities like colleges and institutes, parents, teachers

and students on a single platform and providing the benefits

of the Internet to them.

This Press Release contains forward-looking statements within the meaning of section 27-A of Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. The forward looking statements contained in the press release include, but are not limited to, comments regarding the prospect for further growth in the Company's business or its ability to capitalize on the new initiatives described herein. The forward looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward looking statements -- Satyam Infoway undertakes no duty to update any forward-looking statements.

For a discussion of the risks associated with Satyam Infoway's business, please see the discussion under the caption "Risks related to Business" in Satyam Infoway's Report on Form 6-K for the Quarter ended June 30, 2000 which has been filed with the Securities and Exchange Commission and the other Reports it files with the SEC from time to time. These filings are available at www.sec.gov.