Sify Reports Revenues of US$ 38.63 Million for First Quarter of Fiscal Year 2010-2011

Revenues Grow by 9% Over Same Period of Previous Year. Net Loss at US $ 3.23 Million

CHENNAI, India, July 30, 2010 - 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 first quarter of
fiscal year 2010-11.

    Q1 Performance Highlights 2010-11:

    - Sify reported a 9% growth in revenues for the quarter ended June 30,
      2010 against the same period of FY 2009-2010.
    - Sify closed the quarter at revenues of $ 38.63 million, up 2% from the
      previous quarter.
    - Enterprise business revenues were up 19.5% over the same-period
      Previous year while the International business was higher by 15%
    - Consumer business revenues fell by 44% over same-period previous year
    - EBITDA for the quarter was positive at $ 1.26 million as compared
      to a negative of $ 0.20 million over same period previous year.
    - Net loss for the quarter stood at $ 3.23 million as against a Net
      Loss of $ 2.76 million same-period previous year.
    - Capex during the quarter was $ 1.42 million towards network expansion.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify
Technologies Ltd, said, "For many quarters we have been focussing on
returning the Company to growth and profitability and this is showing some
satisfactory results. Our alliances with leading industry players, be it in
Cloud Services or bandwidth supplies for Domestic and International
bandwidth, or for roll-out of our other services have enabled a strategic
shift in the way we do business. We have satisfaction in seeing the roll-out
of Cloud Services both in Enterprise and Consumer segments and that these are
being well-received by our customers. By launching India's first Consumer
Cloud services targeted presently at cybercafes, Sify has started
implementation of its unified strategy for the Internet Access and Portals
space.

Mr. CVS Suri, Chief Operating Officer, Sify Technologies Ltd,
said, "I am happy to report the successful completion of the first State Data
Centre at Tripura, with Sikkim and 3 others on the anvil. These are highly
prestigious projects that showcase Sify's capabilities in the System
Integration space. We have unbundled our offering for Cybercafes into two
separate services-Connectivity and Value-added services. This quarter also
marks a key milestone in our plan. The shift from a franchisee based model to
a connectivity and value-added services based model is a major shift in our
Consumer strategy. We are pursuing the Infrastructure Management Services
with new product offerings and are seeing customer interest in this segment.
Our eLearning service is also showing accretion of customers.

Mr. MP Vijay Kumar, Chief Financial Officer, Sify Technologies
Limited said, "The consolidation process that was started in the earlier
quarters is expected to show some results. The SG&A expenses have reduced by
about 10 percentage points over the same period last year and cost of
revenues have also dipped marginally. Better cost management has resulted in
higher EBIDTA at US$ 1.26 million against EBIDTA loss of US$ 0.20 million
during same period last year. Our most significant challenge now remains the
consumer business. Losses in our consumer business have been growing over the
recent quarters and a revised consumer strategy is being rolled out.

    *Unaudited Consolidated income statement as per IFRS
    ( In $ million, all translated at $1 = Rs.46.60)

    Description           Quarter ended             Year Ended Quarter Ended
                               June                      March      June
                                2010                      2010       2009

    Enterprise                 32.52                      122.51     27.21
    Consumer                    3.09                       18.13      5.54
    Others                      3.02                       11.38      2.63
    Revenue                    38.63                      152.02     35.38

    Cost of Revenues         (24.96)                     (96.00)   (21.80)

    Selling, General and
    Administrative Expenses  (12.41)                     (52.56)   (13.78)

    EBIDTA                      1.26                        3.46    (0.20)

    Depreciation and
    Amortisation expensese    (3.74)                     (15.11)    (4.17)

    Net Finance Expenses      (1.34)                      (5.71)    (1.17)

    Other Income                0.40                       14.87      0.69

    Share of Affiliates         0.19                        1.63      0.34

    Profit / (loss) Before
    tax                       (3.23)                      (0.86)    (4.51)

    Income Taxes                   -                        1.75      1.75

    Profit / (loss) for
    the period                (3.23)                        0.89    (2.76)

    Profit attributable to:

    Owners of the parent      (3.23)                        0.68    (2.97)

    Non-controlling interests      -                        0.21      0.21

    Net income / (loss) -
    After minority interest    (3.23)                       0.89    (2.76)

* The statutory auditors are in the process of completing their review
procedures for the quarter ended 30th June 2010

Business highlights

ENTERPRISE BUSINESS

Sify's Enterprise business grew by around 20% in terms of
revenue over the same quarter of previous year.

Riding on the back of growing demand for Cloud and Data Centre
services and backed by alliances with some of the industry's leading players,
Sify is consolidating its position as a Managed Services Provider.

Connectivity:

There were new services launched, namely Remote Access VPN for accessing
corporate network from anywhere in the world, DDoS( Distributed Denial of
Service) and "2 factor" authentication service. This is a highly competitive
segment and requires constant innovation.

Hosting:

This business has grown 14% over the same quarter previous year. During
the quarter Sify launched its On-demand Compute services commercially. Sify
has successfully won many contracts for the Cloud Computing services which
are available on Windows, Linux and Solaris Platforms. Another tie up will
see us using HP blade servers along with VMware tools for virtualization.

Sify has forged strong alliances with HP, Microsoft and other
SI partners like Wipro, HCL Technologies etc. The combined strength will be
put to use on large bids while also vying for the connectivity and hosting
business for their customers.

Managed Voice services:

Business Volume (in minutes) of International long distance (ILD)
business (India Termination) has grown by a little over 14% this quarter over
the previous quarter and the revenue grew by around 10%.

Apart from the India termination, the focus has been in setting up the
hubbing business with a near 100% increase of revenue over the previous
quarter. New hubbing routes to many South East Asian countries were created
during the quarter.

Enterprise Application services:

Messaging services grew by approximately 14% during the quarter over the
same quarter last year. Online examination services (iTest) grew in this
quarter by 286% over the same quarter last year. This business is gaining
momentum with both the Private Sector as well as the Govt. sectors demanding
more of these services.

In the Govt. sector, Sify has won an E-Tendering contract for a 5 year
period from the Govt. of Maharashtra (GOM). The newly created UIDAI has also
signed a contract with Sify for a Testing and Certification deal for a period
of 3 years.

INTERNATIONAL SERVICES

The business accounted for 8% of the total
revenues of the Company during the quarter under review.

While the elearning business grew 8% over previous quarters,
the infrastructure business jumped 23% due to a one time service fees. In
both businesses, Sify has entered into partnerships to create additional
opportunities for the future.

CONSUMER SERVICES

The business accounted for 8% of the total
revenues of the Company during the quarter under review.

On broadband-to-home, a wide range of wireless products were launched
coupled with online renewal of accounts through credit cards.

As the traditional franchisee cafe model is ramping down, Sify
has launched Sify mylife, consumer cloud services that allow us to reach out
to substantially more number of cybercafes because it allows the
cybercafe-owner to access Sify VAS services with universal connectivity.

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

For further information, please contact: 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