SIFY Reports US GAAP Results for the Fiscal Year Ended 31st March 2005; 2004-05 Annual Revenues Grow 29% to $82.8 Million; 2004-05 Cash Profits —Adjusted EBITDA— increased 168% to $5.17 Million, Net Loss Reduced by 17% to $7.05 Million

Business Wire, April 19, 2005

CHENNAI, India -- Sify Limited (Nasdaq:SIFY), India's premier Internet, network and e-Commerce Services Company, announced today its consolidated US GAAP results for the fiscal year ended March 31st 2005.

2004-05 Performance highlights:

--Sify reported revenues of $82.8 million for the Fiscal year 2004-05, 29% higher than the previous year.

--Sify's cash profit (in adjusted EBITDA terms) for the year was $5.17 million, an increase of 168% over the amount of $1.93 million for the previous year. See below for a reconciliation of Adjusted EBITDA to our U.S. GAAP operating results.

--Sify reduced its net losses this year to $7.05 million, 17% lower than the net loss of $8.51 million for the previous year. If the profit on sale of businesses were to be excluded, the net loss for the current year would have been 37% lower than in the previous year.

--Despite significant capital expenditures during the year ($11.4 million) and the $2.3 million payment for IP-VPN license entry fee, Sify ended the year with a cash balance of over $31 million, just $2 million lower than the cash balance at the end of previous year.

Mr. R Ramaraj, Managing Director and CEO, said, "I am pleased to report that we have continued our growth momentum with a 29% increase in revenues over last year. During the year, we have invested to strengthen our capabilities to aggressively grow our enterprise business, broadband services, portal and our international business. These investments have resulted in a substantially expanded network across 99 cities, and a broader customer base across both the business and consumer segments."

Mr. George Zacharias, President & COO, said, "During the past year, our Enterprise Solutions Business continued to grow through IP VPN, Internet Bandwidth solutions and end-to-end services to our expanding list of blue chip customers. We continue to lead the way in the alternative medium of high speed and broadband delivery to homes through Cable Television Operators. Our iWay chain of cybercafes continues to grow in numbers, as well as in browsing and voice revenues. Our portal has shown steady growth this year with promising new initiatives contributing to revenues."

Summarised Results:
          (In $ million, all translated at $1 = Rs. 43.62)


Description                 Year ended            Quarter ended
                              31-Mar             31-Mar         31-Dec
                           2005     2004     2005      2004      2004
                       -----------------------------------------------

Corporate services         46.4     32.0     13.3      10.1      12.0
Retail internet access     32.2     25.0      9.1       7.4       8.7
Interactive services        2.4      1.9      0.7       0.5       0.6
Others                      1.9      5.3      0.5       0.9       0.4
                       -----------------------------------------------
Sales Revenue              82.8     64.2     23.6      18.9      21.7

Adjusted EBITDA (a)        5.17     1.93     0.59      2.73      1.07
Reconciliation items:
Depreciation &
 amortization            (13.01)  (13.08)   (3.31)    (3.17)    (3.34)
Below EBITDA share for
 Affiliates               (0.74)   (1.60)   (0.20)    (0.64)    (0.20)
Profit - business /
 assets sold               0.36     3.18        -      1.45         -
Net interest               1.17     1.06     0.35      0.16      0.28
Income Tax                    -        -        -         -         -
                       -----------------------------------------------
Net income / (loss)       (7.05)   (8.51)   (2.56)     0.53     (2.19)


(a) - Adjusted EBITDA represents net income (loss) before
interest, income tax, depreciation and amortization, impairment of
intangible assets, and results involving discontinued operations or
non-operating assets. Please see "Non-GAAP Financial Information"
below.

Corporate Services:

Sify's Corporate Services contributed 56% of revenues for the year (56.5% of revenues during the quarter). There are now more than 1,000 corporates who depend on Enterprise Solutions from Sify.

New IP VPN customers include Birlasoft, Bosch Rexroth, CSAV group, Rhodes and Schwartz, and Usha Martin. Significant repeat orders were received from Hutch, HDFC Standard Life, Jet Airways, Nestle, Pidilite and Perfetti. Substantial progress has also been made in provisioning the large IP VPN orders received during the second half of the year. The Broadband last mile provisioning for VPN connectivity for organized retail chains and enterprise locations saw strong growth.

Sify's collaboration with Global Crossing yielded a number of wins, the notable one being an order from Symbian. In the Information Technology enabled services (ITES) sector, substantial repeat orders were received from GE, Google, Hutch, Novell, Spectramind and Sapient. New wins included CSC, HCL Technologies, Omniglobe and Xansa.

Sify's Application Services entered into engagements for web application development from McDonalds' Master Franchisee Hard Castle Restaurants, Indian Registrar of Shipping and Karur Vysya Bank; Sales Force Automation from Champagne Indage, and Work Flow Solutions from Geogit Financial Services amongst many others.