Tata Communications expands VPN services to Egypt
April 14, 2008

Another step forward executing the company's emerging market strategy

Tata Communications, a leading provider of the new world of communications, announced today the expansion of its global VPN service to Egypt through a partnership agreement with TE Data SAE, a subsidiary of Telecom Egypt SAE (LSE: TEEG) and Egypt's largest IP-based data communications carrier.

Tata Communications and TE Data have interconnected their respective multi-protocol label switching (MPLS ) infrastructures, setting up multiple, redundant network-to-network interconnection (NNI) points between the two companies connecting Tata Communications' European and Indian network hubs with TE Data's facilities in Egypt in order to serve enterprise customers' growing worldwide connectivity needs.

"Partnerships with leading telecom players in emerging markets are critical to provide the deep global reach that our customers' networks require," said Genius Wong, senior vice president, global IP and VPN services. "Our agreement with TE Data is part of our larger MPLS expansion plan that will include other NNI agreements, as well as the expansion of Tata Communications' international on-net, in-key strategic regions and emerging markets that are of high value to our customers."

Egypt's GDP growth over the last five year has averaged at about six per cent mainly on expanding domestic demand. Egypt acts as a major gateway for trade with the Middle East and North Africa due to the free trade agreement between 20 African countries – COMESA. Following a 25-per cent year-on-year real increase in 2007, investments continue growing at full speed, surging by about 30 per cent year-on-year thus far in 2008. According to the Confederation of Indian Industry (CII), investments from India alone are expected to cross $1.5 billion by 2009.

The NNI agreement allows Tata Communications to seamlessly extend its current end-to-end service capabilities by incorporating the TE Data's IP MPLS network footprint in Egypt, using more than 800 access points-of-presence. This will enable the company's VPN customers to benefit from superior connectivity to and from Egypt while experiencing the same security, redundancy and quality of service offered on the Tata Communications network.

"We are pleased to partner with Tata Communications to provide our customers with high-quality IP VPN solutions," said Emad Alazhary, TE Data vice chairman and managing director. "The seamless integration of Tata Communications' high performance MPLS network with TE Data's extensive network coverage in Egypt will provide superior connectivity to India and to the world."

This agreement is the latest in Tata Communications' plans to continue to develop and expand its global coverage. Tata Communications already offers its MPLS services in almost 40 countries and expects to reach over 50 by the end of 2008. It is also increasing the resiliency and depth of its international network with new dual PoPs in four countries and new PoPs in eight cities within its existing country footprint. Tata Communications also offers extended reach to over 150 countries through its VNO Services division.

"Tata Communications' partnership agreement with TE Data will link customers in Egypt with the rest of the world via our rapidly growing network," said Radwan Moussalli, managing director, MENA, Tata Communications. "Africa and the Middle East are markets that are undergoing significant growth, and we plan on continuing to expand the relationship as part of a growing cooperation between Tata Communications and TE Data."

¹Merrill Lynch Egypt country report dated February 2008

Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications' expected financial position, business strategy, the future development of Tata Communications' operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications' network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company's communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications' industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications' control, include, but are not limited to, those risk factors discussed in Tata Communications' various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.