Sify Reports Revenues of US $ 38.16 Million for Second Quarter of Fiscal 2010-11

CHENNAI, India, November 1, 2010 -

    - Data Center Build practice gaining momentum - three
      completed, four under implementation

    - Focus on Managed Services

    - Cloud Services gathering steam

    - Network Outreach expands to 622 towns and cities

    - Consumer Business - expands services to SOHOs and SMBs -
      targets the large number of unbranded cyber cafes

    - International business now contributes significantly to
      Company's business

Sify Technologies Limited (NASDAQ Global Markets: SIFY), a
leader in Enterprise and Consumer Internet Services in India with global
delivery capabilities, today announced its consolidated unaudited results
under International Financial Reporting Standards (IFRS) for the second
quarter of fiscal year 2010-11. The Company reported revenue of US$38.16
million and net loss for the quarter of US$ 3.38 million. This compares with
revenue of US$ 38.69 million and net loss of US$ 2.62 million in the year-ago
quarter. The revenue and net loss for prior quarter were at US$ 38.46 million
and US$ 3.33 million respectively. Gross margins improved to 38%, up from 37%
for the previous quarter.

"We are pleased with the positive momentum generated by the
recently launched Cloud Services and the increasing maturity of our new
Enterprise Model," said Raju Vegesna, CEO of Sify Technologies Ltd. "Our
efforts to configure the Company as a delivery vehicle for Managed services
by vertical integration of Sify's Private Cloud, technology infrastructure
and Business Operations is progressing well. Our new alliances with
world-class partners enhance our core competencies and enable us to deliver
best-in-class solutions to our customers and our partners and their customers
as we continue to focus on improved financial results. These alliances with
major industry partners have been a matter of great satisfaction for us and
with the start of our fully owned subsidiary, Sify Software Ltd. (SSL), we
will begin to offer in-house products developed over open-source to our
Enterprise customers. We want to create solutions for our Customers and
elevate our services up by a notch".

Sify launched its Cloud Services for Data Storage and
Computing in a tie-up with Hitachi and HP in fourth quarter of fiscal
2009-10.

"Our International business has scaled up and is now
contributing to 10% of the Company's revenue," said CVS. Suri, Chief
Operating Officer. "Both the Infrastructure Management business and the
eLearning business are venturing into new lines of activities; while the IMS
business has added in its portfolio, hardware sales and systems integration
along with IMS services, the eLearning business has started seeing traction
with its customized LMS platform, having signed on its first customers. In
the Enterprise segment our effort is to deepen our relationship with existing
customers with Cloud offerings. On the Consumer side, we have reached out
with value packages to the SOHO and mini-business segments. Our residential
Broadband strategy will be around providing wireless services, following the
success of our pilot in Chennai."

"We are pleased to announce positive cash flows from
operations amounting to US$ 0.62 million this quarter," said MP Vijay Kumar,
CFO of the Company. "Positive cash flows from operations have been sustained
over the last three quarters through better working capital management, and
continued focus on better cost control, increasing productivity by better
utilization of existing resources and ensuring profitability of on-going
projects. A zero-based approach to every dollar of expenditure drives our
efforts to generate better financial performance. We are increasingly
focusing on tax-refunds, collections and quality procurement to give added
support to our business teams. The Company's liquidity position is expected
to be satisfactory with the infusion of capital."

Sify reported in August 2010 that its promoter will infuse
capital of US$ 86 million towards liquidity and expansion of the Company's
operations.

Unaudited Consolidated income statement as per IFRS (( In $
million, all translated at $1 = Rs.44.92)

                     Description              Quarter ended  Quarter Ended
                                                September      September
                                                  2010           2009
                                                Unaudited

    Enterprise                                     31.30          30.27     *
    Consumer                                        3.03           5.24
    Others                                          3.83           3.18
    Revenue                                        38.16          38.69

    Cost of Revenues                              (23.63)        (23.45)    *

    Selling, General and
     Administrative Expenses                      (13.91)        (14.11)

    EBIDTA                                          0.62           1.13

    Depreciation and Amortisation
     expenses                                      (3.89)         (3.34)

    Net Finance Expenses                           (1.30)         (1.53)

    Other Income                                    0.45           0.67

    Share of Affiliates                             0.74           0.45

    Profit / (loss) Before tax                     (3.38)         (2.62)

    Income Taxes                                       -              -

    Profit / (loss) for the period                 (3.38)         (2.62)

    Profit attributable to:

    Owners of the parent                           (3.38)         (2.62)

    Non-controlling interests                          -              -

    Net income / (loss) - After
     minority interest                             (3.38)         (2.62)

    (table continued)

                     Description                  Quarter ended  Year Ended
                                                      June         March
                                                      2010         2010
                                                    Unaudited    Unaudited

    Enterprise                                        32.13         118.77
    Consumer                                           3.20          18.81
    Others                                             3.13          11.80
    Revenue                                           38.46         149.38

    Cost of Revenues                                 (24.05)        (91.20)

    Selling, General and
     Administrative Expenses                         (13.08)        (54.90)

    EBIDTA                                             1.33           3.28

    Depreciation and Amortisation
     expensese                                        (3.89)        (15.69)

    Net Finance Expenses                              (1.39)         (5.92)

    Other Income                                       0.42          15.43

    Share of Affiliates                                0.20           2.03

    Profit / (loss) Before tax                        (3.33)         (0.87)

    Income Taxes                                          -           1.81

    Profit / (loss) for the period                    (3.33)          0.94

    Profit attributable to:

    Owners of the parent                              (3.33)          0.73

    Non-controlling interests                             -           0.22

    Net income / (loss) - After
     minority interest                                (3.33)          0.94

    * Reflects an immaterial error correction to report revenue and cost of
    revenue of USD 2.24 million relating to certain trading transactions on
    net basis. This adjustment did not have any impact on the reported net
    income or earning per share. 							

    Non Financial Indicators               Qtr Ended               Year Ended
                                 Sep 10    Sep 09      Jun 10          Mar 10
    e Port
    Subscribers active (000s)       104       306         134             165
    No of e Ports (Operational)   1,141     1,500       1,081            1227

    Broadband
    Subscribers (000s)               79       137          82             106
    No of CTOs                    1,645     1,994       1,767            1967
    ARPU                             36       303         273             285

    Technology
    No of PoPs                      622       573         615             604

BUSINESS HIGHLIGHTS

Enterprise Business

Sify's Enterprise business has successfully added several
large enterprise customers in all its business verticals. Riding on the back
of growing demand for Cloud and Data Center services and backed by alliances
with some of the industry's leading players, Sify consolidated its position
as a Managed Services Provider.

Connectivity:

Sify has successfully closed the quarter with significant wins
from sectors like IT, Telecom, Retail, Manufacturing and Govt. Some of the
major wins during the quarter were from Videocon Mobile Services, Planet M,
Meggit, Toshiba, Maruti Suzuki etc.

The SME market is growing and in order to address this
segment, Sify has launched "Just Connect" which provides Clean Internet
Bandwidth with robust RF last mile connectivity.

Hosting:

The Hosting business has grown by 18% over the same quarter
previous year. The Cloud Computing Services launched in Q1 have shown very
high acceptance in market. This has helped Sify to win many contracts
including Getit, ABP (Ananda Bazaar Patrika) etc. The Government of
Maharashtra has also awarded a contract to Sify for providing Cloud Computing
Services to its departments. All the customer contracts include IaaS
(Infrastructure as a Service) i.e. On-demand Compute, On-demand Storage and
Managed Services.

The growth in the Hosting business has been driven both
through the addition of new customers as well as existing customers have
increased their capacities. Some of these contracts include PACNET, L'Oreal,
Kelloggs etc. Sify is actively working with ISV communities to host their
applications on the Cloud platform.

Managed Voice services:

Business Volume (in minutes) of International Long Distance
(ILD) business (India Termination) has grown by a little over 24% this
quarter over the previous quarter and the revenue grew by around 12%. 10 new
carriers have been added as customers in the last quarter for voice
termination.

System Integration Business:

Sify has been awarded the contract for the Kerala State Data
Center. With this win, the total number of State Data Center projects won by
Sify will reach five. Sify's Data Center Build-practice in the Enterprise
segment is also gaining momentum. During the last quarter we won the contract
to build a Data Center for Vodafone.

CONSUMER SERVICES

Launch of India's first Consumer Cloud Services - Sify mylife
- In July 2010, Sify launched India's first Consumer Cloud Services, branded
as Sify mylife. Sify mylife is a rich ecosystem which enables consumers to
access a whole new world of services, application developers to build and
host solutions on Sify mylife and advertisers to talk to people who access
the net, either at cafes, at home or on mobile internet devices like smart
phones.

End consumers can connect to Sify mylife from the new model of
cyber cafes. While Sify ePorts (cybercafes) are cloud-access-ready, any other
cybercafe can also connect to Sify mylife either through a Sify Broadband
connection or a specially designed 'Sify Edge' device. Sify mylife empowers
cyber cafes with a host of benefits - cyber security tools, cafe management
software, lifestyle enhancing services for consumers, online test center,
economical International calling facility, advertising & brand engagement
platform and lots more. Based on the initial campaign, 500+ cyber cafes have
signed on to this initiative.

"Hi5 from Sify" promotion campaign for new broadband portfolio
- In line with the introduction of a refreshed and more competitive broadband
portfolio, Sify launched a focused registration drive, with an attractive and
competitively priced multi-month plan in the range. The marketing campaign
ran across 5 major markets - Delhi, Mumbai, Kolkata, Hyderabad and Pune, with
the key product driver for the campaign being the 3 months 384 kbps day/ 512
kbps night unlimited plan.

Broadband to SMB/ SOHO crosses the 300 mark - To capitalize on
the large SMB (Small & Medium Businesses) population in India, Sify recently
launched wireless broadband for the SMB/ SOHO segment under the name
Platinum. With uninterrupted connectivity, dedicated speeds up to 2 Mbps,
value added features and a dedicated helpline, the product provides a
superior Internet connectivity to the SMB customer. Along with superior
Internet connectivity, SMB customers get a superior voice product - Sify
Talk.

Launch of Sify Talk, a "Voice over Broadband" service -
September 2010 saw the launch of Sify Talk, a VoIP (Voice over Internet
Protocol) service, targeted at Small and Medium Businesses (SMBs) and Small
Office/Home Office (SOHO) businesses. Sify Talk enables customers to make
International calls from any standard telephone device to any phone - saving
up to 70% on their international call bills. The leading advantage is that
neither does the caller need a computer to make a call nor does the recipient
have to be connected to the Internet to receive the call. Further, Sify Talk
is designed to work on any pre-existing broadband connection at the
customer's premise. Registration for Sify Talk is free and can be done by
visiting www.talk.sify.com.

Sify Talk offers a wide range of plans ranging from Rs. 50 to
Rs. 4000. Customers can even select plans specific to their international
call destinations.

Sponsorship of Media Marketing round-table - In recognition of
the increasing online audience visiting sports portals and as part of our
trade marketing initiative, sify.com sponsored a Media Marketing round-table
in Delhi (Gurgaon). The highlight of the event was the panel discussion which
had as panelists : Joy Bhattacharjya, Chief Executive Officer, Kolkatta
Knight Riders; Sandeep Singh Arora, Executive VP - Marketing, Pepsico India;
Arnab Mitra, Director - India, Havas Digital and Arun Rajamani, GM Portals
Business, Sify. The forum also afforded an opportunity for Sify to share and
communicate its strengths in the Sports portals genre.

Launch of Sify optimized IE8 (Internet Explorer -
Sify-optimized IE8 comes with two key features - Web slices and Accelerators.
Web Slices enable users to view the latest news, stock market updates or
cricket scores just by a single click on the Favorites bar.

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 a recognized 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 designs, develops and delivers state-of-the-art digital
learning solutions for non-profit, for-profit organizations and governmental
organizations in the fields of Information technology, 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 across 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

Sify: 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.

    For further information, please contact

    Sify Technologies Limited

    Mr. Praveen Krishna
    Corporate Communications
    +91-44-22540777 (extn.2055)
    praveen.krishna@sifycorp.com

    Mr. Pijush Das
    Investor Relations
    +91-44-2254-0777 (ext. 2703)
    pijush.das@sifycorp.com

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

Sify Technologies Limited: Mr. Praveen Krishna, Corporate Communications, +91-44-22540777 (extn.2055), praveen.krishna at sifycorp.com; Mr. Pijush Das, Investor Relations, +91-44-2254-0777 (ext. 2703), pijush.das at sifycorp.com; Grayling Investor Relations, Ms. Truc Nguyen (ext. 418), Mr. Christopher Chu (ext. 426), +1-646-284-9400, truc.nguyen at grayling.com, christopher.chu at grayling.com