Mumbai, India, May 17, 2006 Sify Limited (Nasdaq: SIFY), a leader in Consumer Internet and Enterprise Services in India with global delivery capabilities announced new Internet call rates for Gulf from the Sify Talk Net phone services at iWay and Telecenters.

The new call rates to the Gulf are priced at Rs.4.99 per minute for Riyadh and Jeddah, Rs.5.99 per minute to Kuwait, Rs 6.99 to Bahrain and Dhahran and Rs 8.99 to The UAE and the rest of the Kingdom of Saudi Arabia. Call rates to China & Russia have also been slashed to Rs4.99/min across India.

Mr. Sushil Luniya, Vice President, Access Media, Sify Ltd said, “As pioneers in Net Telephony, our objective has been to make it affordable and give a higher quality user experience. The lower call rates are a testimony to that”.

With these new rates, Sify now offers the most economical prices for Internet calls from India. The user experience at an iWay & Telecenter is truly world-class with an easy to use pay phone booth including billing and display mechanism.

Sify offers International Voice services across 1700+ Sify iWay cyber cafes in India. Each cafe has an air-conditioned Net phone booth, which provides both privacy and comfort to the caller. The Sify Talk International Net phone call service user experience is one of a kind as Sify manages all calls over its MPLS based network for clarity of voice and reduced latency- at half the cost of an ISD call enabling users to now speak more often, as well as longer.

About Sify Limited:

Sify is among the largest Internet, network and e-Commerce services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common Internet backbone infrastructure. This Internet backbone reaches 171 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 and hosting. A host of blue chip customers use Sify's corporate service offerings. Consumer services include broadband home access, dial up connectivity and the iWay cyber café chain across 153 cities and towns. The company's network services, data center operations and customer relationship management are accredited ISO 9001:2000.

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 "Risks Related to Our Business" in the company's report on Form 6-K for the quarter ended December 31, 2005 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:
Mr. David Appasamy
Investor Relations
Sify Limited
91-44-2254 0770 Ext. 2013
Email: david_appasamy@sifycorp.com

Mr. Fauzan Rahim
Image Manager
Perfect Relations - Mumbai
Ph: 91-22- 2436 7155 / 039
Email: frahim@perfectrealtions.com