Sify Limitedwww.sifycorp.com

Sify Ltd.Investor Presentation

From time to time, we make presentations to investors, analysts, the media and other persons interested in our company. The present form of presentation that we are using is attached. The contents of this presentation include forward-looking statements that were and are made in express reliance on the safe harbor provisions contained in Section 21E of the Exchange Act and Section 27A of the Securities Act. Such statements include, without limitation, statements relating to results deemed to be achievable by our management in future periods, as well as with respect to trends in sales performance, gross margin, selling, general and administrative costs, market growth, the competitive environment, and other factors affecting future sales, operating results, and capital requirements. Sales and operating results trends are also affected by many other factors, including, among others, world and national political events, general economic conditions which recently have been weak, the effectiveness of our promotion and marketing strategies, and competitive factors applicable to our corporate and consumer markets.

The presentation material also includes selected financial measures that constitute “non-GAAP” data under the Securities and Exchange Commission’s rules, particularly including our calculation of earnings before interest, taxes, depreciation and amortization, or Ebitda.

Sify Ltd.Investor Presentation

A derivation of Ebitda and a reconciliation of that calculation to the GAAP data that we believe to be most comparable is provided in our recent reports on Form 6-K or 20-F filed with the SEC. These reports can be accessed on our website or on the SEC’s Edgar database (www.sec.gov)

The statements furnished in this presentation must be viewed in context and in light of the risks described above and under the caption “Risk Factors” contained in our most recent reports on Form 6-K or 20-F filed with the SEC. In light of these risks, there can be no assurance that the forward-looking statements furnished in this presentation will in fact be realized. The statements made in this presentation speak as of its date only, and it should not be assumed that the statements made herein or therein remain accurate as of any future date.

SIFY DOES NOT PRESENTLY INTEND TO UPDATE THESE STATEMENTS AND UNDERTAKES NO DUTY TO ANY PERSON TO EFFECT ANY SUCH UPDATE UNDER ANY CIRCUMSTANCES.

Sify Ltd.Investor Presentation

Any failure to successfully implement our operating strategy or the occurrence of any of the events or circumstances set forth in this presentation or the referenced Risk Factors could result in the actual operating results being different than the projections, and such differences may be adverse and material.

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India & the InternetLocal Power & Dominance of non-US opportunities

Sify Limitedwww.sifycorp.com

(NASDAQ: SIFY)

India

Population 1.1 Billion

Urban - Rural mix: 25:75

600,000 villages, 100 cities & towns

Total Number Households 210 Million

Strong economic fundamentals

GDP: $ 600 Billion ( 2003 –04)

GDP growth: 8 % (2003-04)

27 States & 7 Union territories 16 Officlal Indian languages in

addition to English India like the EU: each state with

distinct ethnic groups, language,

cuisine & culture

Mobile User Base is Growing Rapidly

4 6 11

57

145

43

145

206

11990

28

85

4 713

24

0

50

100

150

200

250

2000 2001 2002 2003 2004E 2005E 2006E 2007E

Mo

bile

Su

bs

cri

be

rs (

mill

ion

)

India China (with a 5-year lag)

Source : Gartner

• Mobile users growth CAGR 51% (2003-08) Million plus mobile subscribers added every month India market following China with a 5 yr lag Higher growth due to lower handset costs, lower service charges due to competition

India

China 1995 1996 1997 1998 1999 2000 2001 2002

Mobile Value added services

3760

147

420

878

1527

2295

3237

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Da

ta M

ark

et

( U

S $

mill

ion

)

2004 2003 2004E 2005E 2006E 2007E 2008E

IndiaChina

Source : Gartner

• Estimated to grow rapidly at CAGR 67% • China grew at CAGR 275% in the past 4 yrs• Value added services estimated at 15% • Consists of Ring tones, Cricket scores, stock market quotes, pictures, Dating etc

Internet Users - one of fastest growing in Asia

2006E Internet Users ( Million) 31 17 7 126 9 37

0%

5%

10%

15%

20%

25%

30%

35%

40%

20

03

-20

06

E In

tern

et

Us

ers

CA

GR

India Philippines Indonesia China Thailand Korea

Source : IDC

• Fastest growth rates in the region• Rapid infrastructure improvements• Aggressive broadband rollout• Affordable internet access• Development of content & applications

India & the Internet

35 Mln Internet users

5th Largest Country user base

6.0 Mn Internet Subscribers ( Mar 05)

Majority access from cybercafes : up to 70%

Broadband subscribers to grow to 20 Million by 2010. Current 0.7 Million

Mobile Internet access on upswing

Nokia & other handset manufacturing facilities

Intel, Microsoft, Cisco,AOL,Yahoo & Google development centres

Village Internet Kiosks

Single e-point rural connectivity Video Conference Facility Agricultural expert offering

online advice on pests/crop rotation etc

Access Land records from Govt database online , for Loans etc

Web based initiative to support farmers (e-choupal)

Online information Market price onlineProduct literatureWeather / scientific information online

Web Portal Supply of regulated farm

inputs

iWay Cybercafés

2,471 iWay cafes in 90 Cities(adding 2 iWays per day)

Franchised Network

Broadband access

Asset Light Model

Customers owned by Sify

Points for distribution of new services:

Internet Telephony Video Conferencing Games

eGovernance services: example

Rural Access for Sustained Internet Using a web cam from the local Internet kiosk, Tamil Nadu

Agri University diagnosed a pest problem and saved crops Chickenpox outbreak alert- timely information prevents

epidemic Aravind Eye Hospital - telemedicine on the net

TV,Telecom,Internet Penetration

100

62

48

55

6

0 20 40 60 80 100 120

Households

Total No. of Households : 210 Million

Telephone

TV

C & S

Mobile

Internet

Media in India Publications

Newspapers 141 : 21 English + 120 Vernacular

Magazines 163 : 43 English + 120 Vernacluar

Circulation

Top 3 Indian Newspapers Top 3 US Newspapers

Dainik Jagran Hindi 2.4 Million USA Today 2.6 Million

Dainik Bhaskar Hindi 2.2 Million Wall Street Journal 1.8 Million

Times of India English 2.4 Million New York Times 1.7 Million

Advertising Market Size Growth

TV USD 1.1 Billion 12%

Press USD 1.1 Billion 5%

Outdoor USD 181 Million 3%

Radio USD 52 Million 15%

Internet USD 26 Million 100%

Source : AFAA

Source : ABC

Local content already driving use…

Sify.in : Leveraging Indian languages

5 language channels 5 mail languages 122 advertisers Services such as Wireless

Internet content growing rapidly

Horoscopes & Astrological predictions

Booking religious ceremonies online!

Matrimonial services

Filing Income tax returns online

Online railway ticket bookings

Online shopping

Sify Company Highlights

India’s leading Internet Company.

No. 1 or No. 2 in key lines of business.

Core competence and focus on IP technologies, processes

World Class Network, Domestic and International.

Financially strong. Zero Debt. Cash on Hand USD 31 Million

Revenues USD 82.8 Million & EBITDA USD 5.17 Million in 2004-05

Declining Net Losses USD 7.0 Million

India’s First Internet Company to list on Nasdaq.

ADR Price $ 4.65 , ADRs 18.3 Million, Total Shares 35.4 Million,

Unique Business Model

Corporate Services

Data/network services

Hosting services

Security services

Messaging Solutions

International Services

Remote Network and Data Management

Remote Managed Security Services

Backup and Disaster Recovery Services

Content Management

Services

Consumer ServicesBroadband Access

Dial-up AccessPublic Internet Access

Internet TelephonyGames

Portals eCommerce

Technology CoreNetwork Data Centers Systems

Leveraging Common Infrastructure for Multiple Revenue Streams

Business Segments

Based on 2004-05

Revenue of Rs 3614 million , USD 82.8 Million

Cash balance of Rs 1356.7 million , USD 31. Million as of 31st March , Debt - Zero

Access Dial up5.2%

Cybercafes24.5%

Corporate Services53.2%

Access Broadband9.1%

Interactive Services2.9%

International Business

5.1%

Revenues

Revenue growth of 42% CAGR ( 99-00 to 04-05)

14.3

28.1

36.2

45.7

64.2

82.8

0

10

20

30

40

50

60

70

80

90

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

US

D M

n

( 8 .8 )

( 57 . 5 )

( 16 5 .1)

( 3 0 . 5 )

( 8 .5 ) ( 7 .0 )

(180)

(160)

(140)

(120)

(100)

(80)

(60)

(40)

(20)

0

19 9 9 -0 0 2 0 0 0 -0 1 2 0 0 1-0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5

US

D M

nEBITDA & Net Profit

EBITDA

Net Profit

*Net Profit included USD 3.18 Mln on account of Profit on Sale of Land & Cricinfo

*

(4 .8 )

(2 2 .6 )

(11.0 )

1.95 .2

(2 9 .8 )(35)

(30)

(25)

(20)

(15)

(10)

(5)

0

5

10

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05U

SD M

n

First to launch rich broadband content

Popular International content

Online games tailored to Indian audience

Conclusion

Sify is well positioned to maximize opportunities in the (uniquely Indian) Internet

growth market