Sify Increases iWay Cyber Cafe Reach From 95 to 153 Cities Over the Last Financial Year; Furthers Integrated Strategy for Broadband Access & Content for Internet Users in India

Sify Limited (Nasdaq: SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities, announced the increase of its iWay cyber-cafe chain to 153 cities with the addition of 58 new cities during the course of the last year. The company added 836 new iWays during the year, at an average of more than two cafes a day, extending its dominant position in public Internet access in India.

Commenting on the growth of iWays, Mr. Sushil Luniya, Vice President, Access Media, said, “Our drive to expand the iWay chain is in keeping with our objective of taking broadband connectivity to the masses, not just in urban centers, but across India’s smaller cities and towns. This is the first step in enabling our integrated strategy across content and access to shape the Indian consumer’s Internet experience. SifyMax is now the home page across all iWays as they are on broadband, and all initiatives on the portal take advantage of the reach of the iWays. For example, we had a contest for the fans of Indian Idol on SifyMax where they could actually interact with their favorite contestant on video-conference from iWays in more than ten cities. We intend to use our retail storefront advantage to enhance the level of interactivity with the Indian Internet user, both for our content offerings and for brand promotions.”

Iways are also being positioned as the local community center for all online activity for users, virtually becoming the convenient ‘eStore’ in the vicinity. As part of the bundle of services in addition to browsing, the number of Internet telephony enabled iWays grew from 1500 to 2500 over the year, with usage growing by about 60% over the year. However, the increase in revenues was 30% due the highly competitive environment with international telecom rates being reduced by over 20% over the year. Similarly, the number of PCs for online games at the iWays doubled to 6000, and the number of hours of online games grew by over 100% during the year. A new area introduced during the year is the online booking of railway tickets from the iWays. From its introduction last October, the number of railway tickets booked online per month through the iWays have grown exponentially.

About Sify Limited:

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 171 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 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 153 cities and towns. The company’s network services, data center operations and customer relationship management are accredited ISO 9001:2000.

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

Forward-Looking Statements:

This press release contains 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 6-K for the quarter ended December 31, 2005 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.