Sify iWays Cross 3000 Cyber Cafes in 149 Cities & Towns in India; For over a Million Indians, iWays Are Now a Way of Life

Sify's iWays were used by over a million Indians during the lastquarter for a variety of services that include broadband Internetaccess, Net telephony, online games and video conferencing. The IndianMarket Research Bureau, in a 2004 report, estimates that about 70% ofall Internet users access it from cyber cafes. Sify's iWays provides abranded service that is unique, and enables users to enjoy broadbandaccess and a rich media experience that the vast majority of standalone cyber cafes cannot match. In fact, iWays are an innovativedelivery platform for Internet access, scalable to deliver services tomillions of users, in India or elsewhere.

Shrikant Joshi, President of Access Media, Sify, said, "With lessthan 5% of India's population online, and home PCs at 3.5 million outof a total of about 210 million homes, cyber cafes are going to be theprimary means of accessing the Net for some time to come. According toIDC, India has the fastest growing Internet user base in the AsiaPacific Region. In fact, the Internet & Mobile Association of Indiaestimates that Internet users will grow from the current 39 million toa 100 million by 2007. A majority of these users will be accessing theNet from cyber cafes. This is the market we are targeting for theiWays, with multiple services and revenue streams. We will also lookat taking this successful delivery platform for Internet services toother countries who have similar levels of home PC and Internetpenetration. "

Sify manages the service delivery centrally to its vast chainacross 149 cities over its Tier 1 backbone infrastructure, withsoftware and tools custom developed by its technology team. Thesoftware with which service delivery is remotely managed also managesthe administrative & financial aspects of operations in a reliable,transparent manner, building credibility and trust with customers andfranchisees. The innovative iWay delivery platform, combined with thehigh quality rich graphic content that Sify provides on its broadbandcontent portal www.sifymax.com and on www.sify.com , make for a totaluser experience that is drawing many more users on to the Internet.

Customers are debited, from a prepaid charge for a specifiednumber of hours, as per actual use in real time-which they can monitorwhen they are logged in, and renew online. Since the service isdelivered off central servers over the network, customers can log infrom any of the 3100 iWays from anywhere in the country with their login id and password, and use the services exactly as they do from theiWay where they signed on. This gives them flexibility and makes theiraccess 'portable'. The quality of user's experience is managed bySify, and the customers 'owned' by the company.

The software, tools & technology that run the iWays are packedwith innovation to ensure reliability, and the best possible userexperience. Each PC is 'sanitized' the moment a user logs out of thesystem so that there is nothing left in the cache or history, so thatusers get a 'fresh' PC every time they log on. Updates of software,security patches etc are remotely uploaded into every PC across thechain over the network by engineers from the command center inChennai, South India. In addition, every PC can be monitored andreconfigured remotely to ensure optimum working condition using customdeveloped tools. This robust system is a proven and scalable modelcapable of scaling to many multiples its current size for remotedelivery of services.

While Internet access forms the core service, Sify's iWays offerother services such as Online Games and Net telephony. Online gamessaw a growth of 50% in terms of usage with over a 1000 iWays beinggames enabled, and at special gaming cafes that Sify has branded 'SifyGamedromes'. Net telephony also continues to grow, with the serviceavailable from familiar looking telephone booths which consumers findeasy to use. The phones, however, interface with a computer using anapplication developed by sify, and make a Voice over Internet Protocolcall. iWays are also increasingly becoming centers for eCommerce fortravel arrangements, paying for utilities, eGovernance services etc.

About Sify

Sify is a leader in Consumer Internet Access, Portals, andEnterprise Services in India, offering end-to-end solutions with acomprehensive range of products delivered over a common Internetbackbone infrastructure reaching 160 cities and towns in India.Consumer Services comprise of Access Media- with the over 3000 strongiWay cyber cafe chain across 149 cities and towns and broadband accessto homes, and Portals with one of India's leading consumer portalswww.sify.com, and India's first broadband content portalwww.sifymax.com. A significant part of the company's revenue isderived from Enterprise Services, which include corporateconnectivity, network and communications solutions, security, networkmanagement services and hosting. A host of blue chip customers useSify's Enterprise Service offerings. The company's network services,data center operations and customer relationship management areaccredited ISO 9001:2000.

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

Forward Looking Statements:

This press release contains forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended. Theforward-looking statements contained herein are subject to risks anduncertainties that could cause actual results to differ materiallyfrom those reflected in the forward-looking statements. Sifyundertakes 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 OurBusiness" in the company's report on Form 6-K for the quarter endedSeptember 30, 2005 which has been filed with the United StatesSecurities and Exchange Commission and is available by accessing thedatabase maintained by the SEC at www.sec.gov.