Sify Wins Frost & Sullivan Market Leadership Award for IP VPN Markets for 2003; Emerges as the Single Largest Player for IP VPNs in India

Business Wire, August 27, 2004

CHENNAI, India -- Sify Limited (Nasdaq:SIFY), India's premier Internet, networks and eCommerce services company, announced today that it has been awarded the prestigious Frost & Sullivan Market Leadership Award for IP VPN markets for the year 2003. According to Frost & Sullivan's research, the Indian IP VPN market was estimated to be $50.4 million in 2003, with Sify having a 48.7% share of the market. The market is estimated to grow at a compounded annual growth rate of 31.6% over the next six years to reach a size of $266 million by 2009.

Mr Rahul Swarup, President, Sify Enterprise Solutions, received the award at the Frost & Sullivan awards function in Mumbai on Thursday August 26th 2004. Speaking on the occasion, he said, "This award is the highest possible recognition of the efforts Sify has made in pioneering the market for IP VPNs in India, and of setting the standards for data connectivity. Most of all, it is recognition of the trust our valued clients place in us to run their business critical applications over our backbone network. It is also recognition of the expertise, commitment and dedication of the entire Sify team, particularly my colleagues in Technology and Enterprise Solutions, who have made this possible."

Commenting on the award for Sify, Mr Alok Shende, Director-Technology Practice, Frost & Sullivan India, said, "Using interviews with all market participants and extensive secondary research of proprietary data, Frost & Sullivan analysts track competitor revenue and market share within the industry. The competitors are then compared and ranked. According to our research for IP VPN markets, Sify has emerged as the single largest player in the IP VPN market in India with a 48.7% market share."

Sify developed India's first private IP network between the major cities in the country. The launch of Sify's corporate data network services in April 1998 saw interconnectivity between multi-location offices, flexibility of platforms, applications software and smooth transfer of data for corporates, and helped revolutionize business computing in India. The company has continued its pioneering role by being one of the first to offer IP VPNs, MPLS VPNs, and other value added services. Today, over 900 corporate customers run their business critical applications as diverse as SAP, BAAN, Oracle, CRM and ERP solutions on Sify's backbone network.

Frost & Sullivan recognizes outstanding industry achievements by presenting Frost & Sullivan Awards to top companies in regional and global markets. These prestigious awards are recognized worldwide by the media, the investment community and end-user markets. This is the second award from Frost & Sullivan for Sify as it had earlier won the Frost & Sullivan Marketing Engineering Award for Business Development Strategy for Data Centre markets in 2001.

About Sify:

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 67 cities 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 64 cities. The Company's network services, data center operations, customer relationship management and eLearning services are accredited ISO 9001:2000.

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

Forward-looking statements:

This press release may contain 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 20-F for the year ended March 31, 2004 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.