Sify Reports Revenues of $ 156.93 Million for Fiscal Year 2009-10

Revenues Grow 15 % Over the Previous Year. Net Profit for the Year at $ 1.01 Million

CHENNAI, India, April 23, 2010 - Sify Technologies Limited (NASDAQ Global Markets: SIFY), a leader in
Enterprise and Consumer Internet Services in India with global delivery
capabilities, announced today its consolidated unaudited results under
International Financial Reporting Standards (IFRS) for the fourth quarter of
fiscal year 2009-10 and Annual year ending March 31, 2010.

Performance Highlights FY 09-10:

    - Sify reported revenues of $ 156.93 million for the year ended March 31,
      2010, 15% higher than the previous year's revenues of $ 136.5 million.

    - Growth was driven by revenues from Enterprise services which grew 33%
      over the previous year. Despite a challenging environment for
      International services, revenues were retained at the previous year's
      level. Profitability, however, registered a 150% growth over the
      previous year. While Consumer services revenues declined by 35%, a new
      business model with new products, services and delivery was developed
      during the year to return to growth.

    - EBITDA for the year was positive at $ 3.67 million as compared to
      a negative of $ 5.86 million in the previous year.

    - Net Profit for the year was $ 1.01 million as against a Net
      Loss of $ 18.87 million in the previous year. Net Profit for the year
      was due to a one-time realisation from legal matters under other income
      of $12.66 million during the third Quarter.

    - EBITDA for the Quarter was positive at $ 0.69 million
      compared to a negative of $ 1.16 million for the same Quarter in the
      previous year.

    - Sify incurred a Net Loss of $ 3.34 million in the Quarter ended March
      10 compared to a Net Loss of $ 4.53 million for the Quarter ended March
      09.

    - Capex during the year was $ 18.25 million. Cash balance at the end of
      the year was $ 19.34 million.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify
Technologies, said, "We have done well to grow our revenues overall despite
the challenging climate during the year. For while the economy recovered,
industry continues to be cautious, lead times for decisions are long and
price discounts continue to be demanded. The changed business environment
necessitated a realignment of services within both Enterprise and Consumer
services for greater focus, efficiencies and speed of response. With the
result that we were able to grow enterprise services revenues by 33%, and
develop a different approach to Consumer services towards the end of the
year. We believe the stage is set for further growth and profitable
operations."

Mr CVS Suri, Chief Operating Officer, Sify Technologies, said,
"Overall growth in revenues was anchored by robust growth in Enterprise
revenues, while International services posting a 150% growth in profitability
also made a difference. Our focus on the government segment where we have
been able to leverage our expertise in data centre design and development is
beginning to bear results. Enterprise Connectivity too increased total
managed bandwidth contracted to customers by more than 45% during the year.
On the consumer front, we are in the final phase of testing value added
services for delivery across platforms: cyber cafes, broadband as well
Sify.com users. A new business model for cyber cafes to expand reach and
revenue opportunities holds out promise, while new segments and products for
broadband Internet access should help us gain subscribers and increase
revenues."

Mr. MP Vijay Kumar, Chief Financial Officer, Sify, said, "While we are
focused on growing revenues, our initiatives to reduce operating expenses
through fiscal discipline and increasing operational efficiencies continues.
Salary increases in the last Quarter of the financial year increased our
costs, but will be offset by growth in the coming quarters. We also need to
manage our gross margins smartly along with growth and changes in the product
mix going forwards. We will continue to invest judiciously for growth, taking
advantage of the funding options available."

    Unaudited Consolidated income statement as per IFRS
    ( In $ million, all translated at $1 = Rs 45.14
                                 Year ended               Quarter ended
                                  March                     March
    Description         2010             2009          2010        2009

    Enterprise        126.47            95.37         32.99       24.98
    Consumer           18.71            28.92          3.50        6.03
    Others             11.74            12.22          2.70        3.03
    Revenue           156.93           136.51         39.18       34.04

    Cost of Revenues  (99.12)          (80.05)       (25.27)     (20.33)

    Selling, General
    and
    Administrative
    Expenses          (54.14)          (62.33)       (13.23)     (14.87)

    EBIDTA              3.67            (5.86)         0.69       (1.16)

    Depreciation,
    Amortisation and
    impairment        (15.61)          (11.39)        (3.78)      (3.07)

    Net Finance
    Expenses          (5.89)           (2.86)         (1.35)      (1.23)

    Other Income      15.35             1.97           0.65        0.63

    Share of
    Affiliates         1.69             1.42           0.45        0.56

    Profit (Loss)
    Before tax        (0.80)          (16.72)         (3.34)      (4.27)

    Income Tax
    (expense)/benefit  1.81            (2.15)             -       (0.26)

    Profit(Loss)
    for the year       1.01           (18.87)         (3.34)      (4.53)

    Attributable to:

    Equity holders
    of the company     0.68           (19.95)         (3.34)      (4.77)
                          -                -              -           -
    Non-controlling
    interests          0.22             1.08              -        0.24

    Non Financial Indicators

    e Port
    Subscribers active
    (in 000's)          165              490             165        490
    No of e Ports
    (Operational)     1,227            1,791           1,227       1791
    E ports Additions
    (Gross)              96              367               6         41
    No of Cities        253              249             253        249

    Broadband
    Subscribers
    (in 000's)          106              165             106        165
    No of CTOs        1,967            2,011           1,967       2011
    ARPU                285              305             253        291

    Technology
    No of PoPs          607              547             607        547

Business highlights

Enterprise Services

Sify's Enterprise services accounted for around 81% of the
total revenues of the Company during the year.

The Enterprise division now focuses on five main areas of
service: Connectivity Services, Hosting services, Enterprise Application
Services, Managed Voice Services - which includes long distance and
international back haul for telecom companies as well as Enterprise Voice
Services in the domestic market, and Systems Integration. We continue to
serve all segments of the Enterprise market: Large Enterprises, the Mid
Market as well as SMBs.

Hosting services grew 60% in revenues over the previous year.
A number of prestigious contracts were won during the year resulting in
higher capacity utilization of the new Data Centre at Airoli, Navi Mumbai. We
launched On Demand Storage services based on world leading technology &
processes, and has already won contracts for the service. This will represent
an additional growing revenue stream for Hosting going forwards. Sify was
awarded the Best Telecom Data Centre Award from Infocom CMAI during the year.

Managed bandwidth services contracted to customers increased
by more than 45% during the year. Apart from large Telecom operators
contracting our services to reach their services to remote parts of the
country, Sify also won some prestigious contracts from diverse industry
verticals, including the Commodity Exchange industry. Sify has also invested
in EIG, a consortium submarine cable system, which enables the Company's
entry into the large and growing market for international bandwidth. The
cable system will be operational towards the end of financial year FY1011.

Managed Voice Services revenues tripled during the year. The
volume of traffic carried grew by more than five times over the previous
year. Interconnect agreements with many telecom operators, both international
and domestic, for terminating voice traffic has helped strengthen Sify's
position in the industry.

A number of new products developed, and ongoing improvements
in the quality of services in the Enterprise Application Services division
resulted in large business wins and revenue growth. The focus of this
division is on the following services: Messaging, Document Management,
Assessment services and Supply Chain Management services.

Sify's strength in building and operating Data Centres was
recognised with a number of States awarding us contracts to build & operate
their Data Centres. In addition to these wins, we also won other contracts
for building & operating Data Centres in the government and private sectors,
as well as for building large captive networks for customers. With these
wins, Sify has established its position as one of the leading data centre
players in India. We are also recognized as a significant player in Systems
Integration in the country, and have plans of aggressively growing this
business in the coming years.

In Banking, Financial Services, Insurance, Retail, Telecom and
Government segments, Sify further strengthened its role by adding new
customers as well as by enlarging the scope of engagement with existing
customers.

Overall, Sify's Enterprise business has grown by around 33%
over the previous year in terms of revenue, consolidated its position as a
Managed Services Provider, and taken steps to ensure significant growth in
the coming years.

International services

Although revenues were flat over the previous year,
profitability increased significantly by more than 150% over the previous
year.

Infrastructure Management Services

Infrastructure Management Services (IMS) revenues grew by over
20% during the year under review, and also turned profitable. As the outlook
for these services remains strong, we will invest in sales, marketing and
product engineering functions to capitalize on the opportunity.

eLearning Services

Despite the challenging international environment for training
and eLearning services due recessionary pressures, we won 10 new customers
during the last year. However, revenues for the year were lower than expected
due the loss of two of our largest customers. Going forward these new
businesses will offset the loss as the engagements with them ramp up to full
potential.

For the fourth consecutive year, Sify won an award at the
prestigious Brandon Hall Excellence in Learning Awards for 2008 for our
mobile learning platform.

Consumer Services

The business accounted for 11% of the total
revenues of the Company during the year under review.

Sify ePort

We now have 1227 ePorts across 200 towns and cities in India.
While the number of ePorts declined during the year, we continued to add more
value added services.

Sify's ePorts in Mumbai are the authorized centres for the
city's citizens to access and pay for eGovernance services.

The Indian Institute of Banking & Finance (IIBF) conducted
public sector bank officer's assessments at ePorts across the country.

The Centre for the Development of Advanced Computing (CDAC), a
government think tank, selected ePorts as authorized centres for the
submission of online job applications.

Sify's association with NIXI, the National Internet Exchange
of India, has been renewed with fresh terms incrementally beneficial for both
parties. Sify platforms including Sify.com portal, Sify ePorts, Sify home
broadband screens and the sales team's efforts ensured a successful launch
program. Over 30,000 candidates completed the course and received
certificates from Sify- NIXI last year.

Sify has tapped into select colleges and training institutes
for a new source of revenue. Agreements to conduct online examinations at
ePorts are now in place. These represent new sources of revenue that have the
potential to grow in the years to come.

Sify continues to provide value added services in the areas of
Travel, Utility and Financial services. For example, we entered into or
enlarged the scope of tie ups with VIA for air tickets, Red Bus for bus
tickets, and IRCTC for railway tickets.

500 of Sify's ePorts now make a sizable amount of their
revenue from Value Added Services and transactions.

Sify Broadband

Sify's broadband service is now available across 200 cities
and towns in India, with a base of over 1,06,000 subscribers through a
network of about 1900 Cable TV Operators. The effort over the year has been
to halt the slide in subscribers and revenues with new products and service
delivery mechanisms.

Products that leverage surplus bandwidth capacities available
at night were launched successfully and generated consumer interest in the
first half of the year.

In order to further strengthen the broadband product
portfolio, two ranges offering customers greater value were also launched
successfully. With these, customers get three months usage free if they opt
for advance payment for one year and gets one month free for advance payment
for six months. There is a 2 weeks free offer in case he chooses a three
month plan. These were also aimed at locking in the customer for a period of
time to reduce churn.

To remain competitive in the Indian broadband market and
generate higher Average Revenue per User (ARPU), Sify Broadband introduced a
range of unlimited plans, with advance payment options for services at
different speeds. The new products have started to gain traction with
improved acquisitions and lower churn rates.

Sify has also selectively rolled out wireless towers in key
markets to further strengthen the company's position in the Indian market for
broadband services.

To begin with, a complete wireless service and promotion
program is being launched in a select market which is expected to result in
significant growth in new customers.

The small office, home office and retail market space that
need broadband internet connections is next on our list. Sify has just
launched a range of broadband products branded Platinum aimed at these market
segments. Speeds of 2 Mbps, enhanced quality of connectivity, free e mail
IDs, domain name and web hosting template services from Sify make up the
package. We have started signing on customers for this range at a healthy
ARPU of Rs 3600.

Sify continues to provide VoIP services through its ePorts,
telecentres and Sify broadband home users.

Interactive services (portals)

One of India's popular consumer portals, Sify.com continued to
draw from consumer needs, behavior and user trends to revamp its homepage
www.sify.com to increase page views. Sify.com was adjudged one of the three
leading publishers for online display advertising in India, in a study by The
Nielsen Company for the period June-August 2009.

Sify Sports was acclaimed the fastest growing sports site by
Comscore with a growth of 379%. The other sporting coverage on Sify sports
included Tennis (Sify.com/sports/tennis/us-open/,
Sify.com/sports/tennis/wimbledon/). The curtain-raiser to the 2010
Commonwealth Games, the 'Queen's baton relay', described as the longest and
most inclusive in the history of the Commonwealth, was streamed live on
Sify.com.

Samachar.com, the preferred online news destination for Non
Resident Indians (NRIs) is now available on Mobile. Users can now access
India specific news from leading newspapers, magazines and websites from
Samachar.com on their mobile devices. Other Sify.com properties available on
mobile include Movies chat, Sify scores, Sify weather, Sify News and Sify
Astrology.

Sify.com is now available on Facebook and Twitter. Users can
log on to twitter.com/Sifydotcom and www.facebook.com/Sify),
both online and on their mobiles to receive the latest, most discussed tweets
and posts. The year also saw the launch of Samachar Buzz - a social book
marking feature for Samachar users. buzz.samachar.com/

The second edition of the Indian Premier League (IPL) cricket
fiesta, followed by T20 world cup were offered on Sify sports (
Sify.com/sports/). These sections saw a combination of event coverage
and interesting new features including fantasy cricket and live simulation.

Entertainment coverage saw exclusive WWE events
(wwe.Sify.com/) with contests and specials throughout the year.
Environmental issues captured the interest of users in December with
Sify.com's in-depth news and analysis of the Copenhagen summit.
Sify.com/topics/Copenhagen.html

The coverage on the Indian General Elections on Sify News
(Sify.com/news/) included live results, news update, analysis,
debates, candidates and their profile and campaign trail. In addition, the
section allowed the consumers to start their own party, post their manifesto
and even choose their dream candidate online. Sify finance covered the
Railway budget and the Union budget (budget.Sify.com/) extensively
with live commentary of the Finance minister's budget speech. Number of live
chats with industry/ sector specialists was offered to users to clarify their
concerns about the budget. The budget analysis meeting of Chartered
Accountant Association of Mumbai was streamed live on Sify.

Sify.com continues to enhance its content with alliances with
leaders. New partnership deals were inked with EROS, I-Stream & ANI for
videos (videos.Sify.com/)

About Sify Technologies

Sify is among the largest Managed Enterprise and Consumer
Internet Services companies in India, offering end-to-end solutions with a
comprehensive range of products delivered over a common telecom data network
infrastructure reaching more than 600 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. Sify is recognized as an ISO 9001:2008 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 ISO / IEC 20000 - 1:2005 certified for
Internet Data Center operations. Sify has licenses to operate NLD (National
Long Distance) and ILD (International Long Distance) services and offers VoIP
back haul to long distance subscriber telephony services. The company is
India's first enterprise managed services provider to launch a Security
Operations Center (SOC) to deliver managed security services. A host of blue
chip customers use Sify's corporate service offerings.

Sify also caters to global markets in the specialized domains
of eLearning Services and Remote Infrastructure Management Services. The
eLearning Services business designs, develops, and delivers state-of-the-art
digital learning solutions catering to for-profit, non-profit organizations,
and governmental organizations in the fields of hi-tech, engineering,
environment, healthcare, education, and finance. The Remote Infrastructure
Management Services provides dependable and economical solutions around
managed services, hosting, and monitoring.

Consumer services include broadband home access and the ePort
cyber cafe chain cross more than 200 cities and towns in India. Sify.com, the
popular consumer portal, has channels on news, entertainment, finance,
sports, games and shopping. Samachar.com is the popular portal aimed at
non-resident Indians around the globe. The site's content is available in 8
Indian languages, which include Hindi, Malayalam, Telugu, Kannada and Tamil,
Punjabi and Gujarati in addition to English.

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 "Risk Factors" in the company's
report on Form 6-K for the quarter ended September 30, 2009, 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.

Contact information

    Sify Technologies Limited
    Mr. David Appasamy
    Investor Relations
    +91-44-2254-0770 (ext. 2013)
    david.appasamy@sifycorp.com

    Grayling Investor Relations
    Ms. Truc Nguyen (ext. 418) or
    Mr. Christopher Chu (ext. 426)
    +1-646-284-9400
    truc.nguyen@us.grayling.com or
    christopher.chu@us.grayling.com

Sify Technologies Limited: Mr. David Appasamy, Investor Relations, +91-44-2254-0770 (ext. 2013), david.appasamy at sifycorp.com; Grayling Investor Relations, Ms. Truc Nguyen (ext. 418) or
Mr. Christopher Chu (ext. 426), +1-646-284-9400, truc.nguyen at us.grayling.com or
christopher.chu at us.grayling.com