Perfetti Van Melle --India-- and Pidilite Industries Choose Forum, Sif

Perfetti Van Melle --India-- and Pidilite Industries Choose Forum, Sify's Unique Supply Chain Solution

    Business Editors/High-Tech Editors

    CHENNAI, India--(BUSINESS WIRE)--Jan. 19, 2005--Sify Limited (Nasdaq:SIFY), India's premier Internet, networks and eCommerce services company, announced today that two of India's leading consumer product manufacturers Pidilite Industries Limited, makers of market leading Fevicol adhesives, and Perfetti Van Melle India Pvt Ltd (PVMIL) have selected Forum, Sify's supply chain management solution for managing their distribution operations in India over the Internet.
    The projects for both organizations are commencing with limited pilot implementations targeting a few select supply chain partners. The pilot programs will help smoothen business-process and user-acceptance issues and will also help address configuration details that would be critical for long-term success of the projects.
    The scope of the project will be extended to cover their key distributors contributing to a large part of their national revenues by both organizations on successful completion of the pilot phase. Sify expects to grow these projects to their full potential over a period of about 18 to 24 months.
    Once implemented, distributors of these manufacturers would use Forum for their Sales, Distribution and Inventory Management functions including billing, goods receipts, inventory monitoring and generation of sales reports. Distributors would be able to connect securely to the Internet for a short time at the end of each day to exchange information online with their principals.
    Forum is a unique supply chain solution that enables seamless connectivity with supply chain partners, and is a powerful, easy to use and cost-effective tool for managing retailing and distribution operations over the Internet. Forum enables organizations, both large and small to:

--	Reduce inventory and costs while significantly improving efficiencies in distribution management. It has a comprehensive sales and distribution management software to help make businesses more profitable.
--	Automatically collates stock and sales information from branch offices, distributors and retail outlets by means of a simple, user-friendly, seamless and online process.
--	Significantly improves process efficiency by enabling two-way communication between organizations and their distributors / depots. For example, invoices can be delivered online to distributors, or Stock Transfer Notes could be delivered to depots online. Not only would details be delivered on time, the need to re-enter data on stock receipts is eliminated.
--	Makes supply chain partners more profitable with continuous replenishment mechanisms to help reduce inventories of supply chain partners, cut their operations costs and make them more efficient.
--	Helps build a bridge for seamless connectivity between existing applications, with its ability to work with legacy applications, for integration of supply chains with minimum disruption to pre-existing IT infrastructure.

    One of the large organizations who have adopted Forum for managing their supply chain is GlaxoSmithKline Consumer Healthcare for their operations in India.
    Corporates are using Forum at their distribution points for integrating their supply chain. Distributors are using Forum to improve their businesses, to integrate operations of their branches and to interact with their principals. Retailers are using Forum as a complete business solution supporting bar-code enabled Points-Of-Sale (POS), re-ordering mechanisms and a whole range of other modern practices. All that is required is to connect over the Internet with a dial-up connection for a short time at day's end for exchange of critical information.
    The pricing of Forum is flexible to suit the needs of even small businesses based on the configuration of the solution. So Forum can scale to the needs of a retailer, a distributor, a C&FA or a large organization with thousands of channel members.

    About Sify:

    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 73 cities 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 cafe chain across 69 cities.
    The Company's network services, data center operations customer relationship management and eLearning services 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 20-F for the year ended March 31, 2004 and Form 6-K for the quarter ended September 30, 2004, which have 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.

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CONTACT: Sify Limited David Appasamy, 91-44-2254 0770 Ext. 2013 (IR) david_appasamy@sifycorp.com or The Anne McBride Co. Brandi Piacente, 212-983-1702 x208 (IR) bpiacente@annemcbride.com

KEYWORD: INDIA INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: NETWORKING INTERNET E-COMMERCE PRODUCT MARKETING AGREEMENTS SOURCE: Sify Limited

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