Rediff.com and Indian Music Industry Association Announce Streaming Media Initiative

Business Wire, May 3, 2001

Business Editors

MUMBAI, India--(BUSINESS WIRE)--May 3, 2001

Indian music lovers in the US can listen and customize their own

'Playlist' from a large selection of Indian music on Rediff Radio

Rediff.com India Limited (NASDAQ: REDF) one of India's leading Internet portals focusing on India and the global Indian community, announced `streaming media' initiative to offer a selection of Indian songs to music lovers in the US on Rediff Radio (http://radio.rediff.com). This service is being provided to Rediff.com users by obtaining licenses from Phonographic Performance Ltd. (PPL) under the aegis of the Indian Music Industry Association (IMI) and the Indian Performing Rights Society (IPRS). Both PPL and IPRS are copyright societies registered with the Government of India. Rediff.com users in the US can now listen online as well as personalise a `Playlist' from a selection including Bollywood and Tamil songs to the popular Indipop and the much sought after ghazals and evergreen favourites.

Rediff Radio has been developed using in-house technology and is among India's first sites to have the official licenses for providing this service. The Rediff Radio initiative is part of Rediff.com's mission to give all Indians living outside India an opportunity to enhance their cultural bonds and interests.

"We are please to have a licensing arrangement with PPL to provide the some of the best of Indian music to our users worldwide within the existing regulatory framework. We believe this relationship will allow both of us to mutually exploit the true potential of the Internet to our mutual benefit. We consider this to be the beginning of a new era for the music industry in the digital economy," said Mr. Ajit Balakrishnan, Chairman and CEO, Rediff.com India Limited. "Rediff Radio will showcase some of the best in Indian music to the vast Indian community in the US, giving them an opportunity to listen to their favourite artistes and songs," concluded Ajit Balakrishnan.

"Indian's the world over are music-lovers and Indian music is increasingly gaining popularity among non-Indians as well. As the music-loving online community the world over continues to increase, we are happy to be the licensor to Rediff.com and reach out to its large user base in the US. Most importantly this arrangement complements the Associations consolidated efforts at making the best of Indian music available through the convenience of the Internet, through the right channels," said V. J. Lazarus, President, Indian Music Industry.

Rediff Radio will feature the `Legends' alongside the `Latest', including songs of some of India's most popular and loved artistes. Some of the features include "Dedicate a Song" wherein users can e-mail a song to their loved ones. The recipient can click and hear the song directly from Rediff Radio. Users can also customize their own `Playlist' from the various songs on Rediff Radio. The current categories are:

-- Chartbusters: Offers users access to the Top-10 Bollywood Bonanza of Hindi
film music and the current rage Indipop

-- Singers: This category comprises songs from the legends of Indian music like
Lata Mangeshkar, Asha Bhosale, Kishore Kumar, Mohammed Rafi and Mukesh.

-- Composers: Includes a selection of songs of R.D. Burman, A.R. Rahman and Anu
Malik.

The Indian Music Industry (IMI), the premier association of music companies in India has taken the initiative to be one of the first bodies in the world to formulate a scheme of collective web casting license and accordingly Rediff.com is pleased to obtain the license from PPL.

About Rediff.com

Founded in 1996, Rediff.com India Limited (Nasdaq: REDF) is one of the leading Internet portals focussing on India and the global Indian community. Currently, Rediff.com's web site consists of interest specific channels, extensive community features, local language editions, sophisticated search capabilities, and online shopping. Rediff.com also provides users extensive Internet community offerings, which include e-mail, chat, instant messaging and personal homepages, all tailored to Indian interests. Rediff.com has developed its offerings based on the demands and the requirements of its users. The company also has an U.S. version of its site, with content more relevant to the Indian community in the United States.

Except for the historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements". These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements.

These risks and uncertainties include, but are not limited to competition, acquisitions, attracting, recruiting and retaining highly skilled employees, technology, law and regulatory policy and managing risks associated with customer projects as well as other risks detailed in the reports filed by Rediff.com India Limited with the U.S. Securities and Exchange Commission. Rediff.com undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. This report is available at www.sec.gov.