Sify Subsidiary SafeScrypt and SISL Sign Pact to Provide PKI Based Network Security Solutions for the SAP Community.

CHENNAI, India -- SafeScrypt, a subsidiary of Sify Limited (Nasdaq: SIFY), and Siemens Information Systems Ltd. (SISL) have signed a business Memorandum of Understanding (MOU) to provide a comprehensive Network Security offering for the large community of SAP users in India. Both companies will leverage their respective strengths in this area and provide end-to-end solutions for the ERP server security market. The ERP market in India is growing rapidly, with the next wave of growth seen in the small and medium business (SMB) segment.

To meet the challenges of this fast growing market, SISL has developed a product named myNetSecurA. It provides Digital Certificate based authentication for network communications security between SAP host entities i.e. the client and the server, client and SAP lpd (printer), client and SAP router etc. This solution therefore offers security advantages of strong authentication, Data integrity, Confidentiality & Non-repudiation. myNetSecurA will use Digital Certificates issued using SafeScrypts' Managed PKI Services offering to authenticate users based on their Digital Certificates.

Commenting on the MOU, Mr. John Devasahayam, Managing Director, SafeScrypt Ltd. said, "Security considerations are paramount for any application exposed on a network. It is imperative that SAP systems which essentially maintain critical business information have adequate controls and safeguards built in, given the environment of compliance and security related concerns. This will be a key factor in catalyzing the growth of the ERP market in India, particularly Small & Medium Businesses looking for confidence to work online."

According to Dr Vinay Vaidya, Vice President, SISL, "In the current business scenario, critical information such as financial data stored in the ERP system is the lifeline of any business. In addition, maintaining data integrity and security is essential for every business process supported by SAP. In an era where hackers are gaining in numbers as well as sophistication, and where enterprises exchange increasing number of mission-critical applications across networks, the authentication system on SAP needs to be strengthened."

myNetSecurA has already been implemented abroad for clients such as Finnish Defense and is now being offered for the first time in the Indian market. Significantly, myNetSecurA has already received certification from SAP AG, Germany as a SAP network security product. In the process, SISL has earned the distinction of becoming the first South East Asian Company and only one of the eight companies worldwide to receive SAP certification for a network security product on Microsoft Windows platform.

About SISL:

Siemens Information Systems Ltd. (SISL), the IT arm of Siemens, is one of the foremost names in Information and Communications technology in India today, focusing on niche markets. SISL has today grown to be one of the leading systems integrators and total solutions providers. The company has positioned itself in the areas of IT Services, Business Consulting and Management Consulting with focus on verticals like Healthcare, Telecom, Transportation, Utilities, Media and Security solutions.

About SafeScrypt:

SafeScrypts' primary focus is on providing Digital Trust Services and high-end solutions within the domain of Data, Application & Transaction Security to help businesses migrate to a secure environment for electronic transactions. SafeScrypt is also India's first Licensed Certifying Authority (CA) under the IT Act 2000 and a VeriSign Affiliate for the Indian Subcontinent offering Managed PKI services to enterprises and Digital Certificates to end-users as well. SafeScrypt is a fully owned subsidiary of Sify Ltd (Nasdaq National Markets : SIFY) one of 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.

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 73 cities 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 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 69 cities. The Company's network services, data center operations customer relationship management and eLearning services 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 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, 2004 and Form 6-K for the quarter ended December 31, 2004, which have 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.