Making the Internet Work for You Investor Relations March 2007.

Making the Internet Work for You

Investor Relations March

2007

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.


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.


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.

* * * * * * * *

India’s leading Internet & Network services company.

Business model leveraging multiple services on common network infrastructure

No. 1 or No. 2 in key lines of business across corporate & consumer services.

Core competence and focus on IP technologies, processes, service delivery.

World Class Network, Domestic and International. First Indian Internet company to list on Nasdaq 1900 people, Preferred Employer on Tech

Campuses.

Company highlights

Company Company IncorporationIncorporation

RetailRetailInternet Internet Access: Access: Dial upDial up

Corporate Corporate

Data /Data /

Network Network servicesservices

NetworkNetworkInfrastructureInfrastructure Online

Portal

Data center Data center / Hosting/ Hosting ServiceService

Broadband

delivery

through fixed

wireless

Dec 95

96-97

Apr 98

Oct 98

Nov 98 Oct 99 Sep 00

Jul 01

Milestones

IPO, IPO, Nasdaq Nasdaq ListingListing

Retail Retail Internet Internet access : access :

Cybercafes Cybercafes launchedlaunched

Mar 00

VoIP VoIP LaunchedLaunched

May 02

Contd..

A decade of innovation and leadership

Infrastructure

Management

Services

Online

Games

UCO

OICL

IP VPN Orders

Jun 04

Sep 04

Milestones

Acquisition of EAP

“Sify Assure”

Mar 04

Feb 05

Retail

Broadband

Thro

CTOs

Jun 03

Infinity Capital

Acquisition of

Satyam

computers

Stake in Sify

Nov 05

EBITDAEBITDABreak EvenBreak Even

Cisco

GS Routers

Dec 02

Mar 03

Third

Datacenter

Bangalore

Apr-06

A series of firsts

First private service provider with TCP/IP network First Private ISP First to offer VPN First to offer Internet telephony First to deploy Gigabit Switch Routers First implementation of Multi-Protocol Label

Switching (MPLS) First level 3 data center First to upgrade network to IPv6 First Certifying Authority licensed under

Information Technology Act, 2000 First Broadband Portal Sifymax.in

A history of robust topline growth

14.1

27.8

35.8

45.2

63.5

81.9

106.1

0

10

20

30

40

50

60

70

80

90

100

US

D M

illio

n

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

1 $ = Rs 44.11

EBITDA

1 $ = Rs 44.11

- 22.3

- 10.9

1.9

5.16.5

-35

-30

-25

-20

-15

-10

-5

0

5

10U

SD

Mil

lio

n

2001-02 2002-03 2003-04 2004-05 2005-06

Path to profitability

4 .23 .7

2.72. 3

1. 2

0 .3

3. 0

0 .9

1.61.4

0 .5

(0 .2)(1 .4 )

(2 .2)-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

Q 1 05 06 Q 2 0 5 06 Q3 0 50 6 Q 4 0 50 6 Q 1 06 0 7 Q 2 0 6 07 Q3 0 60 7

US

D M

illio

nEBITDA Net Profit

1 $ = Rs 44.11

Catalysts of the Internet for positive change

EnterpriseServices

ConsumerInternetExperience

Technology CoreNetwork Data Centers Systems

Leveraging IP expertise

Sify TechnologyAn Overview

Quality Policy

““To become the global provider of choice by To become the global provider of choice by pioneering technology and offering innovative pioneering technology and offering innovative

customer centric internet solutions thereby customer centric internet solutions thereby creating value for the customercreating value for the customer””

Sify’s Technology is ISO 9001-2000, BS7799 certified & appraised CMMi Level 3

The Sify Edge:Infrastructure - India Network A World class design and

service standards network to deliver Consumer Internet

Experience Enterprise Technology

Services

Network coverage extends to 200 cities

Our Network is IPv6 and MPLS enabled with redundancies

A Converged network: Voice,Video & Data capability

Future proofed to meet strong demand from IT/ITES and other verticals

The Sify Edge :Infrastructure – Redundant Global Connectivity

Sify IP VPNCloud

Sify NoC 1

Remote Location 2

Central Location

Sify NoC 2

Remote Location 1

DelhiMumbaiChennaiKolkataBangaloreHyderabadAhmedabadCochin

NoC Level RedundancyLink Level RedundancyCarrier RedundancySP 1SP 2

Dual Network Operation Centers

Leased line with ISDN back upAvailability: 99%

Sify’s Wireless BroadbandAvailability: 99.5%

Sify IP VPNCloud

LL (nxE1)/FE(nx64)

Sify’s Wireless Broadband(upto 10 Mbps)

PSTN dial-up

LL/FE with ISDN back up

ISDN dial-up(BRI/PRI)Ethernet

MAN

Last Mile options

Latency : <70 msec in core, <150 msec anywhere to anywherePacket loss: <= 1%

iWay Infrastructure

Sify Backbone

Iway

Iway

Iway

Iway

Base Station

Chennai

City 1City 2

City 3

AuthenticationServer

Billing Server

International Bandwidth

Broadband Service delivery…

CTO

Control Room

OFCSIFY Micro PoP

SIFY

SIFY OFC Ring

MDU/CTO connectivity

10000+ InstallationsRapid Deployment Secure, Managed

Wireless Infrastructure

5.7 GHz, 5 Km, 8 5.7 GHz, 5 Km, 8 Mbps Mbps

2.4 GHz, 5 Km, 3 2.4 GHz, 5 Km, 3 Mbps Mbps

2.5 GHz, 8 Km, 3 2.5 GHz, 8 Km, 3 MbpsMbps

Level 3 Data Centres

Tidel Park-Chennai

Vashi - Mumbai Bangalore

State-of-the-Art Network Management

Integrated Trouble Ticketing

Proactive Alerts

Standards Based

Customer-centric Processes

Sify TAC Web enabled Automatic alerts on email & SMS Sophisticated trouble ticketing system Escalation Support

support.sify.net Reports on utilization, throughput, packet loss Reference Library Customizable Alerts

Our goal is

custo

mer delig

ht

Our goal is

custo

mer delig

ht

24x7 Central Help Desk Universal Access Number Instant access to Sify customer rep

CCRM Customer Profile View & Relationship Management Internal Customer Management tool

Our People: Technology Expertise & Skills•Network certifications: CCNA/ CCNP/ CCIE• System Certifications : RHCE, SCSA,SCNA,MCSE,MCSD• Database certifications : OCP, OCA, MCDBA• Security certifications: CISSP, CISA, BS7799 auditors•Process certifications: ITIL, Six Sigma

Team Strength – 800 and growing

Common pool of technology talent across businesses

•Operating System: Windows, Solaris, HP-UX, AIX, Linux• Database : MS-SQL, MySQL, Oracle, Sybase, Postgres SQL• Messaging : MS-Exchange, Lotus Domino• Web / App servers: Weblogic, Websphere, iPlanet, Apache, Tomcat, IIS, Coldfusion• Service Tools: Openview,Unicenter, Patrol, Remedy, Magic

NMS

Trouble Ticket Engine

Knowledgebase

ChangeWorkflow

ThresholdMonitoring

Service LevelAgreements

EscalationEngine

ConfigurationBaselines

Incident Management

ProblemManagement

Change Management

CapacityManagement

SLAManagement

Service Desk

IT ServiceContinuity

Management

AvailabilityManagement

ReportsEngine

CIO Dashboard

Software InventoryPatch Management

NMS Alerts

C M D B

C M D B

IT Information Library

CRM

ProvisioningTAC

SAM

NMS

PrepaidMail

LDAP

SIP Proxy

CMS

Chat

BillingLinux

MySQL SQLServer

Oracle Apache

JBossSolaris

Weblogic

MS Windows

Software Strategy

Networks

Servers Security

Application Management

Databases

Messaging

Storage

Desktop Management

Asset Management

Patch Management

Vendor Management

ServicesServices CapabilitiesCapabilities

Consulting

Audit

Management

Monitoring

Facility Management

Migration

Managed IT services …

Portals

Presentation Structure

India & the Internet Internet usage life cycle Pillars of Internet - Access & Portals Sify .com-Focus Area,Channels, Cross

utilization

India & the Internet

2006 Internet Users ( M illion) 37 7 18 132 8 34

0%

5%

10%

15%

20%

25%

30%

35%

40%

20

03

-20

06

Inte

rne

t U

se

rs C

AG

R

Ind ia Ph ilip p in e s Ind o ne sia Ch ina Th ailan d Ko re a

Source : Internetworldstats & IDC

• Fastest growth rates in the region• Rapid infrastructure im provem ents• Aggressive broadband rollout• Affordable internet access• Developm ent of content & applications

India & the Internet

37 Mn internet users Estimated to be 50 Mn by March’08 Internet penetration at 3.5% of population Smaller cities & towns record 142% YOY

growth 25% users from smaller towns Over 20Mn NRI’s estimated world over

Source:IAMAI & Internetworldstats

Internet usage progress

Ecommerce

Entertainment

Information

Communication

India

Pillars of internet industry

Access PortalsCyberCafe Mail

Home NewsOffice Sports

School /College FinanceOthers Chat

3500 + Sify

Iways

210,000 Sify

Broadband HH’s

Sta

nd

ara

d

fare

Sify.com Channels

Resident Indian Non Resident Indian

Sify.com - 5 Regional Languages Samachar.com

Sify Mail - 11 Regional Languages Bawarchi.com

Sifymax.com - Entertainment

Movies - Bollywood & Regional Cinema

Sify.com Channels : “ Indian” interest content targeted at the Indian Diaspora

Sify.com-Regional languages

Sify.com-Mail

Samachar.com

Broadband focus

Entertainment Online Games, Movies, Music Videos Association with Indian Television : Indian Idol, MTV

Roadies, Fame Gurukul, Saregamapa

Sifymax.com

http://mumbailive.in/

http://biggboss.sifymax.com/

Biggboss : Reality show on the lines of British reality show “Big Brother”

Cutting with Aneesha : Bollywood gossip

Interactive Content

Education Tie up with Educational Institutions E Learning (Computer Based Training) Online tests

Cross utilization by Sify

Driving application through access points (online +

offline)

Zee Cinestars Talent Hunt-Nationwide talent hunt

on the lines of “American Idol” . Sify Iway used as

audition points.Telecast of event on Sifymax.com

Unique model of purchasing railway tickets

through Sify Iway through a tie up with Indian

Railways

Access MediaCybercafes

The world’s largest franchised cyber-café chain

We single handedly created the branded public

internet access services industry in India by taking

internet to the people with a franchised chain

Cyber cafés successful in India due to low PC

penetration in homes Currently 3550+ cafes in 158 cities, and growing

Delivering a superior Consumer Internet Experience

High speed access across the chain

Cybercafes:

Consumer Touch Points

Scalable model Asset light: Space, interiors,

computers etc by franchisee Sify provides the connectivity &

online management of service delivery

Pre-paid model Proven and successful franchise

operation

The Consumer Internet Experience is driven and controlled by us.

The Consumer Internet Experience is driven and controlled by us.

Services to Consumer

3600 Approach to consumer

voice

E services

E learning

E shopping

E entertainment

Browsing

: Categories & Services

Internet : Browsing,Voice,Games

E commerce : IRCTC,E bay,Utility bills etc

E learning : ILP , Micro soft certificate

E entertainment : GameDrome,Sify max

E shopping : Sify mall

Future: “Everywhere”

•Residential areas

•Cafes

•Shopping Malls

•Airport Lounges

•College “Hangouts”

•Street Corners

•Libraries

Vision

Our vision is to be a largest player in branded cyber cafes by being an

integral part of Indian middle class family through unparalleled business innovations & consumer satisfaction

Broadband Access

Broadband in India

Opportunity – 20 million by 2010 as projected by CII.

Source (CII – Broadband Telecom Policy 2004)

Current Market size – 2 million

3

9

20

2005 2007 2010

Year

Su

bs

cri

be

r b

as

e in

mill

ion

s

Sify Broadband

Pioneered unique model with Cable TV Operator for last mile connectivity through Ethernet.

Largest in the Ethernet space with more than 200,000 subscribers.

Potential of 80 million Cable TV households. (On the contrary only 25% of fixed lines can be DSL enabled.)

Cable TV homes more likely to buy home PCs.

Technology Innovation for India :

› Hybrid model of Wireless + Optic fibre + Ethernet

Brand Promise

VALUE FOR MONEY Pre-paid pack with post-paid benefits. Products as suited for various usage categories. 24 x 7 CustomerCare. No modem, No Rental charges. User-friendly Broadband client. FREE licensed anti-virus software.

DO MORE : Educational tie-ups. VOIP for International Calls. PC health solutions.

Retail Voice

International calling worth 2.5 billion minutes per annum as per study.

Growing at 50% every year.

VOIP is estimated to contribute 8 % – 10 % .

VOIP calls growing at more than 75% per annum.

Sify is the leader with 37% market share.(TRAI)

Voice market size - India

Sify Talk – Retail distribution

iWay chain with over 2000 VoIP Kiosks.

In addition to iWay chain, more than 1000 Sify Telecentre kiosks in India.

Currently 10 million minutes in an year.

Available in 20 cities and planning to expand to 30 cities by 07.

Offering world class voice quality by having world class carriers.

Sify Talk – Home voice

• Sify offers Sify talk – PC 2 Phone card for making international calls.• Users can call international destinations from the comfort of home.•Customer base of more than a million users between Iway, Broadband, Mail & Samachar can capitalize on synergies.•One world plan at Rs1.99 per min for more than 100 countries•Electronic dispensing of packs made available to 2000 CTO’s

OverviewSify LimitedSify Limited Pioneering Expertise

› India’s leading integrated Internet and Infrastructure services company

› NASDAQ listed Corporation

› India’s leading operator of Tier III and Tier IV Data Centers

- India’s Market Leader for VPN services

Financial Strength

› Enterprise Solutions revenues at $US 55 million contributes 54% of Sify revenues

Certifications

› SEI CMMI Level 5

› ISO 9001:2000

› ISO 27001

Customer Patronage

› 1500+ Corporate Customers

Pioneering Expertise

› India’s leading integrated Internet and Infrastructure services company

› NASDAQ listed Corporation

› India’s leading operator of Tier III and Tier IV Data Centers

- India’s Market Leader for VPN services

Financial Strength

› Enterprise Solutions revenues at $US 55 million contributes 54% of Sify revenues

Certifications

› SEI CMMI Level 5

› ISO 9001:2000

› ISO 27001

Customer Patronage

› 1500+ Corporate Customers

Service OfferingsService Offerings Enterprise Solutions

› Enterprise Connectivity

› Managed VoIP Solution

› Application Services

› Security Solutions

› Hosting Services

› Infrastructure Management

› eLearning Services

› Managed Services Key Verticals Served

› IT/ITES

› BFSI

› Consumer

› Telecom

› Life Sciences

› Manufacturing

› Retail

› Energy

› Government

Enterprise Solutions

› Enterprise Connectivity

› Managed VoIP Solution

› Application Services

› Security Solutions

› Hosting Services

› Infrastructure Management

› eLearning Services

› Managed Services Key Verticals Served

› IT/ITES

› BFSI

› Consumer

› Telecom

› Life Sciences

› Manufacturing

› Retail

› Energy

› Government

Evolution from an ISP to ICT Provider

Dec’95: Company IncorporationDec’95: Company Incorporation

96-97: Network Infrastructure96-97: Network Infrastructure

April’98: Corporate Data / Network ServicesApril’98: Corporate Data / Network Services

Oct’99: NASDAQ ListingOct’99: NASDAQ Listing

Sep’00: Data Centre / Hosting ServicesSep’00: Data Centre / Hosting Services

May’02: VoIP LaunchedMay’02: VoIP Launched

Dec’02: CISCO GS Routers Dec’02: CISCO GS Routers

Mar’04: Acquisition of EAP “Sify Assure”Mar’04: Acquisition of EAP “Sify Assure”

June’04: Infrastructure Management Services June’04: Infrastructure Management Services

Sep’04: UCO OICL IP VPN OrdersSep’04: UCO OICL IP VPN Orders

Mar’06: 05-06 net profit of USD 0.5 MnMar’06: 05-06 net profit of USD 0.5 Mn

Aug’06: Tier III Data Centre at Bangalore (Scalable to Tier IV) Aug’06: Tier III Data Centre at Bangalore (Scalable to Tier IV)

OCT’06: IP VPN – MPLS Market Leadership Award from

Frost & Sullivan Third time in a row

OCT’06: IP VPN – MPLS Market Leadership Award from

Frost & Sullivan Third time in a row

Significant Achievements

Frost & Sullivan Market Leadership Award for IP VPN Market in India 2003-04,2004-05 and 2005-06

2006 Brandon Hall Gold Excellence award- Sify eLearning for a Learning Delivery Platform developed for Cisco Systems

Recognition by Forrester for Remote Infrastructure Management Services

Recognition by IDC for the pioneering progress in IP VPN market space

Recognition by Gartner for initiatives in Managed Services

Awarded Superbrand status for the year 2004-06

ISO 27001 Certification for Information Security Management Systems

ISO 9001:2000 Certification for provisioning of corporate VPN, Internet bandwidth, Voice over IP and Integrated Security Solutions

CMMI® level 5 Certification

IP Backbone Reach Domestic Coverage

Cisco GSR 12404 Routers

Cisco 7206 NPEG1 Routers

International Coverage

200 *PoPs in India200 *PoPs in India

Sify Offices

300 cities in 30 countries300+ cities in 52 countries International PoPs: NY, London, HK, LA, SJ

Collocated POPCollocated POPNew York - I

Los Angeles

San Jose

London - I

Hong Kong

Peering ISPPeering ISP

New York - II

London - IIInternet Peering - International

Internet Peering - International *Point of Presence/Base Station

Global Infrastructure Mgmt Centre

•First company in India to be certified ISO 9001: 2000• Network Services, Data Centre, Operations and Customer Relationship Management

•One of the first Data Centre in India to be certified ISO 27001

•Implementation of Information Security Management System

•Tier III Data Centre•Vashi Mumbai•Tidel Park, Chennai

•Tier III Data Centre at Bangalore (Scalable to Tier IV) •Certified ISO 27001

Sify Enterprise Offerings

• Mail Messaging

• Online Examinations

• Document Management

• Supply Chain Management

• Web Applications

• eLearning

• Infrastructure Mgmt Services

• Business Continuity

• Value Added Services

• Security Services

• Consulting Services

• Data & Transaction Security

• Implementation Services

• Managed Security Services

• Remote Infrastructure

Management Services

• Global Delivery Model

• IP VPN/MPLS

• Global Connectivity

Solutions

• Dedicated Internet

Bandwidth

• VoIP Services

Testimonials

“Sify’s mailing solution is highly reliable, scalable and unique. It has helped us disseminate information about new products, schemes, incentives etc., to our 5500 plus agent force in a cost effective manner. A unique feature of the solution is that Sify has bundled mail-only connectivity with the Mail Id's such that our agents have easy access to their mail boxes from over 300 locations in India with just a normal dial-up connection.”

Mr. P.K. RathGeneral Manager (Marketing)

“We would like to place on record the high degree of professionalism shown by SIFY in supporting our Internet connectivity across multiple locations in India. This has enabled us to achieve very good internet uptime.” Mr. Chella Namasivayam, Vice President - Information Technology

“We Chose Sify to conduct our Security Consulting Audit as they are our Internet Bandwidth service provider, and we realized they could provide world class network security services to us. Our experience with Sify for the security audit has been very good. I believe we made the right decisionand it has been a pleasure working with their competent and service focused team.” Mr.A.K.Sircar Controller - Information Technology

“At the outset, I would like to take this opportunity to congratulate Sify's project team for successfully completing the design, development and implementation of our Customer Care Application for 400+ Authorized Service Centers (ASCs) in India.I'm very pleased with the application development and project management capabilities of your team.We look forward to a long and mutually beneficial relationship with your organization.”

Souren Banerjee

CMO Customer Care - India

Testimonials

“Sify was chosen because they are the one of the leaders in implementing Last Mile wireless solutions with a fail-safe infrastructure and an extensive presence in the country.”

Mr.Jitendra Sarode

IT Infrastructure Head

“ERP and connectivity cannot be looked at in isolation. ERP's success largely depended on a scalable, secure and reliable connectivity, which was provided by Sify.”

Mr. Pradyumna Poddar

General Manager

“Sify's leadership in India for providing MPLS Layer 2 and Layer 3 VPN services for enterprises with full redundancies built at all levels, along with their strong value proposition for providing International MPLS connectivity services played a critical role in WOIL adopting their network.” Mr Ajay Khanna

Manager IT & Networks

“This is the first time I am working with a consultant who exceeded my expectations!!'. Having worked in the Customer Satisfaction tracking industry I know how difficult it is to get an 'exceeded expectations' rating!!”

Mr. David Krueger Global Operations IT Director

Testimonials

Testimonials - International

I wish to congratulate you on an excellent team that meets our needs in a timely fashion and makes it a

PLEASURE to work with. I personally wish to express my appreciation to the team and to the

leadership for the GREAT job they are doing for us.Max Herrell - GE Capital Services

“The application looks awesome! So professional and easy to navigate! Awesome job, team!“

Luyba Mikhina - GE Energy Rentals

These fantastic two-hour premium clinics (created by Sify) are now available to our IT Professional and

Developer users. A HUGE thanks to all who worked on these premium clinics. It’s because of the Sify

MS team that these premium clinics shipped on time and under budget. This is by far one of the

smoothest projects I have ever worked on and I have these people to thank again and again and again.

Congratulations everybody and on to the refreshes!

Amanda Van Kleeck

Program Manager - Microsoft Learning

Uniquely positioned to leverage the

internet growth in India and abroad

for both Enterprise and Consumer

services

Continuing Sify’s Winning

Spirit

Uniquely positioned to leverage the

internet growth in India and abroad

for both Enterprise and Consumer

services

Continuing Sify’s Winning

Spirit

Summary

Thank You

Making the Internet Work for You Investor Relations March 2007.

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Transcript of Making the Internet Work for You Investor Relations March 2007.