iWays & IRCTC to Enable Online Rail E-Ticket Reservations against Cash Payment; Sify Ties up with IRCTC to Enable This Service from over 3400 iWays across 154 Cities in India.

NEW DELHI, India -- Sify Limited (Nasdaq:SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities, today, announced its tie-up with the Indian Railway Catering and Tourism Corporation (IRCTC) to make their online railway ticketing services available at over 3400 iWay cyber cafes across 154 cities in the country with cash payments. A pilot project at 10 iWays in Delhi has started today. This is expected to revolutionise the way railway ticketing is done, with never-before convenience with neighborhood access for the common man.

Online railway ticket bookings on the IRCTC site has been available to customers who either have a credit card or a net banking facility, limiting the number of people who could actually use this convenient facility. The vast majority of Indians however, still prefer to make cash payments for tickets, goods or services. So it was imperative that a means be found for the large number of Indians without a credit card or a net banking facility to be able to make online rail ticket reservations and pay cash.

Commenting on the tie-up, Mr. P K Goel, Managing Director, IRCTC, said, "This path-breaking initiative is aimed at making railway e-ticketing easier and convenient for our customers across the country. For they no longer have to worry about using credit cards or having a net banking facility which is restricted to those with access to computers at home or in the office. Instead, they can simply make the online bookings and make convenient cash payment at Sify's iWays. We are very pleased to be able to make this very successful facility available to all our customers to with the help of Sify iWays. The reach and network of Sify's iWays is sure to make a difference by enabling access to this online service to the masses."

Speaking on the occasion of this landmark tie-up, Mr. Raju Vegesna, MD & CEO, Sify Limited, said, "This is a tie-up that will make the online rail ticketing facility of the IRCTC accessible and available to the common man through our wide reach of over 3400 iWays cyber cafes across 154 cities. I believe that this will become a landmark event in the growth of online ticketing in the country by not only making it widely available to everyone, but by overcoming the barrier of online payment with convenient cash payments. It is innovative solutions like this that will grow e-commerce in India, and I am extremely pleased that we have been able to work with the IRCTC to make this possible. This is only the first of many new initiatives planned to transform our iWay cyber cafes from being points for Internet access, to what we like to call 'eStores', with all manner of electronic distribution and fulfillment of services."

So one no longer needs to travel to a railway booking counter, stand in queues or look for a travel agent any longer. All it requires is a visit to the neighborhood Sify iWay, where the cafe administrator can book the railway ticket online. He or she sits inside the cool ambience of the Sify iWay, and finalises the itinerary based on availability. The customer pays cash against the ticket and collects the ticket printout. In case of ticket cancellations, the customer will follow the standard cancellation process of the IRCTC, after which the customer gets cash against the cancellation.

So, the next time you need to take a train journey, head straight to the nearest Sify iWay to make your bookings!

About Sify Limited:

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 171 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 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 154 cities and towns. The company's network services, data center operations and customer relationship management are accredited ISO 9001:2000.

For more information about Sify, visit http://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 6-K for the quarter ended June 30, 2006 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.

About IRCTC

The Indian Railway Catering and Tourism Corporation Limited (IRCTC) is a public sector company set up and fully owned by the Ministry of Railways. The Internet Rail Ticketing program for India is being handled by the Indian Railway Catering and Tourism Corporation (IRCTC). On August 3, 2002 the facility for Internet ticketing was launched for public. Through www.irctc.co.in the tickets for Rail journeys can be booked on the Internet by any user. IRCTC delivers the tickets in 212 cities of India. IRCTC also provides the facility to book e-ticket i.e. just book your ticket and take print out and travel with your photo ID. Apart from this the timing for booking online tickets are from 0500 hrs to 2330 hrs Monday to Sunday.

IRCTC has now allowed RTSAs, IATA agents & TAAI members to book the tickets online, in the same process, IRCTC has tied up with Sify to provide its users the much easier reach to book the Railway tickets.