Sify WiFi Enables Bangalore; Broadband Access From 120 Locations Possible with Sify WiZones.

Business Editors/High-Tech Writers

BANGALORE, India--(BUSINESS WIRE)--Oct. 14, 2003

Sify Limited (Nasdaq:SIFY), India's premier Internet, networking and eCommerce services company, announced today that Bangalore city has been WiFi enabled with broadband connectivity from over 120 hotspots.

These cover locations like the Vidhana Soudha, the IIM Bangalore, The Park, The Atria, The Grand Ashok, the ITPL, the Manipal Centre, the KGA Club House, The Club, Casa Piccola chain of restaurants, TGIF, the Java City chain of coffee shops, 100 Foot Boutique Restaurant, Tandoor and iWay cyber cafes - making Bangalore India's first WiFi enabled city. Sify chose Bangalore for the launch of WiFi services given its lap top population, familiarity with working online, as well as international visitors needing such services while moving around the city.

Commenting on the launch of these services, Shri D B Inamdar, Hon'ble Minister for IT, Karnataka, said, "I am delighted that Sify has chosen Bangalore to become India's first WiFi enabled city. Bangalore now joins a select list of cities worldwide that enable professionals to stay connected while on the move. This is an important step in our drive to provide world-class facilities to investors and visitors to the city. Sify and Bangalore are once again leading the way in technology services that enable business efficiencies."

Mr George Zacharias, President & COO, Sify, said, "IT professionals and overseas visitors to Bangalore can now enjoy broadband WiFi access at any Sify iWay, as well as at other hotspots in Bangalore for about Re 1 per minute. In addition to the current 120 hotspots, branded Sify 'WiZones', many more are being rolled out over the next few months, covering hotels, restaurants, commercial buildings, malls and corporate campuses in Bangalore and other cities."

Sify's WiZones provide broadband connectivity that is reliable, fast (upto 384 kbps), scalable and secure so that business communications can be done with confidence. Prepaid cards can be bought online at www.sifymall.com and used with a WiFi enabled laptop (Centrino or with a WiFi card).

Sify WiZone users can use their accounts across any Sify WiZone hotspot in India. The departure lounges of the Chennai and Delhi international airports already have WiZones, and they will soon be available across other cities in the country. Information on Sify WiZone locations can be accessed at http://wizone.sify.com.

Sify is a leading provider of broadband services currently in India, with about 350 corporate customers for broadband connectivity, over 300,000 users from 1200 iWay cyber cafes that are powered by broadband and over 12000 home users. The Sify WiZones will connect to the company's state of the art Tier 1 backbone infrastructure with multiple fibre and satellite gateways for fast connectivity and great user experience.

About Sify:

Sify Limited is the leading network and e-Commerce services company in India, offering end-to-end solutions with a comprehensive range of products delivered over a common Internet backbone infrastructure. This Internet backbone reaches 55 points of presence in India, representing an estimated 90% of the established PC base in the country. 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. As of June 30, 2003, a host of blue chip customers used Sify's corporate service offerings. The company's network services, data center operations and customer relationship management are accredited ISO 9001:2000.

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

Non-GAAP Financial Information

Our presentation of financial information above includes a presentation of Adjusted EBITDA. 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 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's 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.

Our calculation includes significant charges recorded to reflect the impairment of goodwill which are not included in the calculation of EBITDA under the SEC's rules applicable to periodic reports. While EBITDA or derivations thereof are frequently reported by many companies as a 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.

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 6K for the quarter ended June 30, 2003 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