Sify Technologies Signs up with Cisco to Launch Managed Services

Sify Technologies Limited (Nasdaq National Markets: SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities, announced today the launch of Managed MPLS Service and Managed Internet Service as part of the Cisco Managed Services Channel Program (MSCP). This service is the first of a series of Managed Services that Sify Technologies plans to launch over the next two years.

The Managed MPLS Service will provide world-class solutions with end-to-end service assurance to enterprises for their business critical networks. The services are a part of Sify's strategy to migrate from TDM to IP based network services and introduce a full suite of Managed Services for Indian enterprises.

The launch of these services follows the Tier 1 MSCP certification for Sify Technologies from Cisco for their network and service capabilities. The certification places it in a league of select global operators that are endorsed for carrier-class MPLS networks and enterprise-class MPLS service capabilities.

The Cisco Tier 1 MSCP certification is based on rigorous third party audit that covers various aspects of the MPLS Service, including network architecture, network engineering capabilities, the security on network and service providing capabilities and processes.

Over the next two years, Sify will start offering a wide range of managed IP based services in a phased manner. These services will enable enterprises to outsource some of their most important IP communication services with complete investment protection and scalability.

Sify Launches Roam Connect International in India

Sify Technologies Limited (NASDAQ National Market: SIFY), a leader in Consumer, Internet and Enterprise Services in India with global delivery capabilities, announced today the launch of its Roam Connect International service in India.

The Roam Connect International service, powered by leading enterprise mobility provider iPass (NASDAQ: IPAS), will enable Sify customers to access a global high-speed, reliable and secure wireless Broadband service when on the move. With Roam Connect International, customers will now be able to access their data from more than 100,000 broadband locations globally, including key business-centric venues such as airports, hotels, conference centers and retail venues.

Commenting on the launch of this new breakthrough service, Mr. P.J. Nath, Executive President, Sify Technologies Limited, said "Staying connected is a business imperative in today's competitive business environment. With Roam Connect International, real time access to data has become possible for decision making on the go. We are confident that our new service offering will increase management efficiency and response to customers in real time even when users are traveling. iPass is a global leader in mobile connectivity for the enterprise and we are happy to partner with them to launch this service in India. With this launch, our Connectivity portfolio has been further enhanced to meet evolving needs".

Speaking on the partnership, Chee Leng Loy, Managing Director for Asia, iPass said "India is an important market for iPass, and partnering with Sify was an obvious choice with its strong focus on the India enterprise space and its extensive sales network in the country. Working with Sify, we are confident that we will offer India's largest enterprises a leading, secure and on-demand global connectivity solution".

The iPassConnectT mobility manager software is available for notebooks and handheld devices and simplifies user access, whilst unifying global connectivity and streamlining management and support for the end user and IT department.

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 348 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, enterprise applications 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 café chain across 164 cities and towns. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions, and BS7799 certified for Internet Data Center operations. Sify.com the consumer portal of Sify has sub portals like www.samachar.com, www.walletwatch.com, www.sifymax.com and www.chennailive.in, www.bangalorelive.in, www.mumbailive.in, www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil.

Sify Technologies Limited Migrates Financial Reporting Procedure to International Financial Reporting Standards (IFRS)

Sify Technologies Limited (NASDAQ National Market: SIFY), a leader in Consumer, Internet and Enterprise Services in India with global delivery capabilities, announced that the Company is migrating its Financial Reporting to the International Financial Reporting Standards (IFRS). Sify’s financial results were announced previously under US GAAP up to the quarter ending December 31, 2007.
“The SEC has, in its release of 21st December 2007, permitted Foreign Private Issuers to prepare financial statements under IFRS without reconciliation to US GAAP. The Indian GAAP is presently based on IFRS with a full convergence with IFRS expected to happen in 2011. Our vision and standards have always been global, so it is fitting that Sify is taking the initiative to transit to globally followed accounting standards with our annual financial results statements as per IFRS”, said Mr M P Vijay Kumar, Chief Financial Officer, Sify Technologies Limited.

Sify will release its Fourth Quarter and Annual Results for the year ending March 31, 2008 prepared under IFRS. As the transition involves extensive process review and preparation, the results for the quarter ending March 31, 2008 and for the financial year ending March 31, 2008 would be announced by May 31, 2008.

IFRS is generally principles-based standards. IFRS requires exercise of judgement by the preparer and the auditor in applying the principles of accounting based on economic substance of the transactions rather than on the legal form. More than 100 countries now require or allow use of IFRS, and many other countries are replacing their national standards with IFRS.

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 348 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, enterprise applications 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 café chain across 164 cities and towns. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP Solutions and integrated security solutions, and BS7799 certified for Internet Data Center operations. Sify.com the consumer portal of Sify has sub portals like www.samachar.com, www.walletwatch.com, www.sifymax.com and www.chennailive.in, www.bangalorelive.in, www.mumbailive.in, www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil.

Sify Launches end-to-end Managed Security Services

Sify Technologies Limited (NASDAQ National Market: SIFY), a leader in Consumer, Internet and Enterprise Services in India with global delivery capabilities, today announced the launch of its end-to-end Managed Security Services (MSS). This service will be powered by a state-of-the-art Security Operations Center (SOC) set up by the company in Bangalore.
With this launch, Sify will offer its Enterprise customers the entire suite of Managed Security Services including 24x7 Monitoring and Management of Security Devices, Security Event Correlation and Reporting along with a range of other value added services like Vulnerability Protection, Compliance Monitoring and Forensics Services.

Mr. P J Nath, Executive President, Sify Enterprise Solutions, said, "Managed Security Services are one of the fastest growing services in India with a market size of about Rs 181 crores last year. We expect robust growth in demand over the next five to six years with many more companies moving towards online processes and storage, or enhancing their current capabilities. So the addition of end-to-end Managed Security Services to our Enterprise Services portfolio is timely, and will build on the considerable expertise we have developed over the years in infrastructure management and information security. The launch of these services makes Sify even more competitive in managed services with our range of enterprise service offerings across connectivity, hosting, applications and security enhanced by their addition".
Powered by a high-tech SOC in Bangalore and backed by a strong delivery platform using a dedicated customer web portal developed in-house, Sify is well poised to cater to the Managed Security needs of both domestic and global customers.

Sify's MSS will help customers to:
-- Proactively secure information assets and preempt security threats
-- Ensure 24x7 managed security for their mission critical assets with guaranteed SLAs
-- Ensure 24x7 availability of critical systems and protect informationassets more effectively through actionable security intelligence

Sify's competitive edge comes from its vast and diverse expertise in security technologies, deep domain knowledge in information security consulting, excellence in delivering infrastructure managed services, and a solid understanding of the Internet and the threats associated with it.

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 348 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, enterprise applications 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 café chain across 164 cities and towns. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP Solutions and integrated security solutions, and BS7799 certified for Internet Data Center operations. Sify.com the consumer portal of Sify has sub portals like www.samachar.com, www.walletwatch.com, www.sifymax.com and www.chennailive.in, www.bangalorelive.in, www.mumbailive.in, www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil.

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

Sify Revenues for 2nd Quarter 07-08 at $37.02 Million

Sify Technologies Limited (Nasdaq Global Markets: SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities, announced today its consolidated US GAAP results for the second quarter ended 30th September 2007.

Quarter 2 07-08 Performance Highlights:

-- Sify reported revenues of $ 37.02 million for the 2nd quarter ended 30th September 07, 4.7% higher than the immediately preceding quarter, and 6.4% over the same period last fiscal.
-- Sify’s Net Profit before exceptional items was $ 1.12 million as against $ 0.58 million in the previous quarter. Post exceptional items, the Net Loss for the quarter is $ 1.25 million as compared to the previous quarter’s Net Loss of $ 1.27 million.
-- Sify incurred exceptional expenses of $ 1.8 million for legal expenses this quarter related to a case against another Internet company.
-- Sify’s Cash Profit, in adjusted EBITDA terms was $ 3.97 million as against a cash profit of $ 3.32 million in the preceding quarter. Cash profit for the same period last year was $ 4.10 million.
-- Sify ended the quarter with a cash balance of $ 50.3 million after capital expenditure of $ 4.12 million during the quarter. Positive cash generated from operations before exceptional items stood at $ 6.84 million at the end of the quarter.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify, said, “We have done well to accelerate our revenues in the enterprise segment where the business model and our team are now well set and beginning to yield results. We will continue to grow revenues with more aggressive marketing of these services going forwards. We have also initiated the integration of our consumer service lines and infrastructure to leverage synergies in this segment. I believe we will be able to see the results of these initiatives over the next two quarters. However, the full benefit of these efforts will be realized during the course of next year”.

Mr. MP Vijay Kumar, Sify CFO, said, “While the quarter has seen growth and cash generated from operations, at gross margin level there is some decline partly due to changes in our revenue mix. However our revenues in absolute terms will be higher due to continued growth in future. Our efforts to bring down the Provision for Doubtful Debts have resulted in their coming down to less than significant levels, and I believe we will be able to manage them at these levels going forwards. We have also done well to generate cash from operations during the quarter and expect to continue doing so in future”.

* Adjusted EBITDA represent net income / (loss) before interest, income tax, depreciation and amortization impairment of intangible assets.

Highlights of the quarter:

Domestic Enterprise Services:
During the quarter Sify launched a number of strategic new services including
-- Hosted Contact Center solutions for the Domestic & International IT Enabled Services and call center companies.
-- Managed Voice Services for inbound services on Multi Protocol Label Switching (MPLS) connectivity that enables voice, video and data carriage on Internet protocol.
-- Premium Anti-Virus and Anti-Spam services were launched as a part of our Software as a Service (SaaS) offerings. This is targeted towards the Small and Medium enterprises segment to protect their Messaging systems.

Key wins for the quarter include: During the quarter there were a number of orders won for products and services offered by Sify. Some key wins of significant strategic importance for the organization.

-- AT&T, Shoppers Stop for Hosting Services
-- VPN order from ICRA, a leading investment and credit rating agency in India
-- Kotak Securities for Messaging Services
-- Kuoni Travel Services group for Security Consulting services
-- Oriental Insurance Company of India signed a large wide area network contract covering 900 locations across the country
-- Tata Teleservices for Document Management Solutions

International Enterprise Services:

Infrastructure Management Services:

During the quarter, Sify successfully transitioned to offshore the first order for a remote network monitoring service for a global auto major. Many more RFPs have been received subsequently from the same customer.

Sify's UK branch registration was successfully completed during the quarter, which now gives us the ability to pursue business in the UK and Europe.

eLearning Services:

Sify eLearning won two more international Brandon Hall Excellence in Learning Awards, silver and a bronze, for eLearning courses developed for Cisco and GE, two of our key customers. This recognition follows our winning two Gold awards last year, again for courses developed for Cisco and GE.

Sify eLearning has also won new orders from a global software company for developing their eLearning curriculum.

Consumer One Services:

Broadband:

Launch of Sify Anywhere : One of the key initiatives during the quarter was the launch of Sify Anywhere. Sify Anywhere is a good example of the Sify’s ability to synergize services, with users now being able to access the Net as a broadband account from home, from any of the over 3500 iWay cyber cafes, as a dialup connection and even wi-fi. Sify Anywhere was launched in the cities of Mumbai and Delhi with a host of visibility and below the line activities. The below the line activities done creatively, including kite flying at the India Gate in Delhi and motorbike cavalcades through the cities, not only captured the imagination of the people but also drove home the message of Sify Anywhere.

International calls using VoIP : Sify’s Internet Telephony Booths (ITBs) enable the common man to walk in and make an International call at very low rates. The beginning of the second quarter saw a price revision of the end user rates making it simple and even more affordable. Instead of a long list of different rates for each country, it was simplified by clubbing together countries into 4 categories either at Rs.2 per min, Rs.4, Rs.8 or Rs.10. This initiative resulted in a 40% growth of voice minutes during the quarter vis-à-vis the previous quarter.

Alternate to the last mile : With the objective of ensuring quality of service as well as enabling reach, a pilot deployment of wireless technology for home consumers was done in Bangalore. The objective of the pilot was to study customer acceptance as well as judge the service delivery. The pilot saw 72 customers at the end of the quarter.

Growth through DSAs: The appointment of Direct selling Agents has been a strategic initiative to further customer acquisition. The DSA program saw a 62% growth in customer acquisition in this quarter compared to Q1.

iWay cyber cafes:

Extended Hours: Over 175 cafes now open at six AM and remain open for longer to enable additional hours when subscribers can use the services.

eCommerce services: With continued focus, the value of ecommerce transactions through the chain continues to increase with the number of transactions increased by 67%.

Alliances: Over a 100 cafes now have flat screens into which advertisements are beamed on a revenue share basis with an Out of Home Media company. This objective is to progressively increase this coverage for additional revenues. Sify also entered into an alliance with Xerox for photocopying services at the iWays.

Promotions: Over five hundred mini promotions at the cafes were done across multiple cities to expose new users to the cafes and draw in additional traffic.

Portals:

Sify.com entered into an alliance with the popular TV channel Sony Entertainment Television to increase brand visibility and bring viewers of popular TV shows on to the Internet medium. In turn these viewers can increase their involvement with the TV show through online information and interaction platforms on sify.com like message boards, polls and chats. The success of this initiative was evident with over 300,000 messages received from users on the reality show website for Indian Idol on sify.com.

The official site for Indian idol on sify.com is www.indianidol.sify.com. This site contributed to 15% of the incremental page views for Sify.com and was accessed by 5% of the country’s Internet users during the quarter. Sony has once again partnered with Sify.com for the website of Jhalak Dikhla Jaa, the Indian version of the dance-based reality show “Dancing with the stars”. The website offers video clips from the show, exclusive moments, recaps etc. and is also highly interactive, offering polls, message boards and chats

To gain new visitors from amongst young Indians living abroad to work and study, the leading website, for overseas Indians, Samachar.com was revamped with an all new look and feel with new services in keeping with user feedback.Samchar.com brings India up close and personal to Indians overseas, with users now able to search archives for news by date and from over 100 publications in 6 languages. The Samachar.com directory was launched to enable users to list their business or services to be able to find buyers and sellers.

During the quarter, Sify.com launched www.chennailive.in, the first broadband and video website for the city of Chennai. After the successful launch of mumbailive.in, bangalorelive.in, & hyderabadlive.in, this is the fourth broadband city portal from Sify.com, which brings these cities live in video on the web for the citizens of these cities. This site was designed based on learning from the other city sites and was made a text cum video site since users preferred to read text descriptions as a precursor to watching the videos.

Sify shopping had increasing transactions during the Raksha Bandhan festival season celebrated through out the country and by Indians living abroad, where gifts are exchanged between brothers and sisters. A large number of gifting products like Rakhi gift hampers, jewellery, gift vouchers etc were sent through Sifymall.com. Sifymall.com also entered into alliances with credit card companies to increase transactions and provide better value, offers and discounts to their users.

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 236 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, enterprise applications 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 café chain across 164 cities and towns. Sify is recognized as an ISO 9001:2000 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP Solutions and integrated security solutions, and BS7799 certified for Internet Data Center operations. Sify.com the consumer portal of Sify has sub portals like www.samachar.com, www.walletwatch.com, www.sifymax.com and www.chennailive.in, www.bangalorelive.in, www.mumbailive.in, www.hyderabadlive.in the city based live video on the web. The content is available in 5 Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil.

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 20-F for the year ended March 31, 2007 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.

To view the press release along with the tables, please click on the link given below: