Sify Reports Revenues of $ 37.10 Million

Sify Technologies Limited, a leader in Managed Enterprise, Network and IT Services in India with growing global delivery capabilities, today announced its consolidated results pursuant to this agreement International Financial Reporting Standards for the second quarter of fiscal year 2011-12.

Mr. Raju Vegesna, Chairman & MD, said, "We are pleased to present our financial performance for the second quarter of FY 2011-12. Our Enterprise business continues to gain traction, supported by domestic growth in the corporate segment and a renewed spending environment.

The services front

"On the services front, the focus on Network, IT and software services as core offerings is beginning to show results.

"As the largest spender on IT and Network services, the government represents a significant growth possibility for Sify and will remain an important focus area. The recently announced Telecom Policy is a step in the right direction in creating a level playing field among IT and Telecom service providers. Our SOHO/SMB base grew by 60%. More than half of these signups came from Tier II and III towns helped by our expanding footprint.

"Visitors to our Sify.com portal grew by 19% versus same quarter last year, helped by the launch of Health and Research portals and the strength of Sify Sports.

"Software services continues its evolution towards a strong position in providing on-demand software-enabled services to enterprise clients. Our Skills Assessment and e-Learning solutions are gaining momentum and gaining acceptance across a larger customer base. Our Content and Collaboration services on SaaS and mobile platforms have generated considerable interest from enterprises who are looking for cost effective means of business communications.

The overall outlook for growth in India is positive

"The overall outlook for growth in India is positive and we continue to invest in expanding our network, data centers and other infrastructure. Our network and data centre expansion and commissioning of cable landing station are proceeding as per plan.

Sify is among the largest Managed Enterprise, Network and IT Services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching more than 667 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, voice and hosting. Sify is a recognized ISO 9001:2008 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP (Voice over Internet Protocol) solutions and integrated security solutions, and ISO / IEC 20000 - 1:2005 and ISO/IEC 27001:2005 certified for Internet Data Center operations. Sify has as well established a credible reputation in the emerging Cloud Computing market and is today regarded as a thought leader in the domain. Sify has licenses to operate NLD and ILD services and as well offers VoIP (Voice over Internet Protocol) back haul to long distance subscriber telephony services. The company is India's first enterprise managed services provider to launch a Security Operations Center to deliver managed security services.

Sify Software was established with the cumulative experience gained over the last decade in Infrastructure Management, Data centre Operations and the business of Connectivity. It aims to be a solutions company that provides applications and services to improve business efficiencies of its current customers and prospect client bases.

Commercial & Consumer services include broadband home access and the ePort cyber café chain across more than 243 cities and towns in India. Very recently, Sify as well introduced a whole host of services for the retail consumer on the Consumer cloud platform, thereby becoming among the first to do so in India. Today, the scope of the Commercial and Consumer services has been broadened to target the SMB/SOHO markets. The consumer services as well operate two of the most popular portals in India, Sify.com and Samachar.com.

For a discussion of the risks associated with Sify's business, please see the discussion in accordance with the caption "Risk Factors" in the company's Annual Report on Form 20-F for the year ended March 31, 2011, 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, and Sify's other reports filed with the SEC.