NEC and Sify Form Strategic Partnership

NEC Corporation, a leading provider of 3G infrastructure and handsets, Internet, broadband network and enterprise business solutions, and Sify Limited, a leader in consumer Internet and enterprise services in India with global delivery capabilities, today announced a strategic partnership to jointly promote thin client computing in India.

Under the leadership of CEO Raju Vegesna, Sify has been experiencing robust business expansion in the rapidly developing Indian economy. Sify's success can be attributed to its highly-focused business strategy that leverages the assets of its sophisticated network infrastructure and data centers in Mumbai, Bangalore and Chennai to reach enterprise clients with its IT infrastructure management services and personal consumers with its popular Internet portal, and over 3500 broadband internet cafés and its broadband home access service.

The collaboration will enable thin client computing in India with NEC supplying virtual PC centers ("VPCCs") to Sify, which will utilize them to provide thin client systems to customers as an outsourced service, to enable the spread of VPCC services to companies in India.

The commercial PC market in India is growing at the thriving pace of 24% per year as the Indian PC market is still in a stage of infancy and has great potencial. As Indian companies consider alternatives for commercial PCs, NEC and Sify will promote thin client computing as an outsourced service, which greatly reduces the total cost of ownership ("TCO") for the client. More importantly, thin client computing also enables an enhanced security environment for conducting business. Sify will also promote the installation of VPCCs in its Internet caf?s and customer call centers.

The partnership aims at the installation of 100,000 client terminal units and 6,000 server units within the first three years of business in India. NEC India Pvt. Ltd will promote the concept of VPCC thin computing together with Sify for the delivery of services.

Mr. Kazuhiko Kobayashi, Executive Vice-President of NEC Corp, said, "With more mobile innovations in the ICT industry and faster technological adaptations in recent years, NEC believes that businesses and economies worldwide are evolving from a PC-based computing model to a network-centric computing model. We are optimistic about this new thin client business, and plan to grow it into a US$1.25 billion business for our global operations in the next three years."

Mr Raju Vegesna, Chairman and CEO, Sify Limited, said, "India was the fastest growing IT market in the Asia Pacific region in 2006 according to IDC. The IT adoption wave is forecast to continue in 2007, especially amongst small & medium-sized businesses, as well as in consumer homes. We believe that the availability of a network-centric computing model with its many advantages, especially cost and security, will accelerate the rate of IT adoption in the country. Sify, along with NEC, intends to catalyze the market for such services in India. We are ideally positioned to do so with our sophisticated infrastructure comprising of a world-class Internet Protocol network and our data centers, as well as our expertise in provisioning managed services"- NEC.