May 21, 2004 VSNL and NTT Com to Launch International IP-VPN Service in India Tokyo, Japan --- Videsh Sanchar Niger Limited (VSNL) and NTT Communications Corporation (NTT Com) announced today that they have signed an agreement to provide NTT Com's MPLS(*)-based Arcstar Global IP-VPN service in India. The partners will install an MPLS switch in Mumbai before starting service by the end of May. As a result of the agreement, multinational companies in India will enjoy easy access to NTT Com's reliable MPLS-based IP-VPN service, which offers highly competitive levels of security, speed and quality. "This new partnership with NTT Com will further strengthen VSNL's ability to provide comprehensive, high-quality managed IP and VPN services across the Asia Pacific and other geographies," said Mr. V. S. Shridhar, head of corporate business for VSNL. "We expect to enjoy increasing demand from global companies looking to create regional hubs or international networks," he added. "I am very excited that this new partnership with VSNL will enable us to expand our Arcstar coverage to India, a market with unlimited potential for growth," said Kimio Tamura, vice-president of NTT Com's Global Services Business Division. "This is truly a winning alliance, since we will enhance our competitive edge in the Indian market, while VSNL beefs up its service portfolio by connecting to our global IP-VPN service network," he explained. NTT Com will be the second global company and first Japanese company to partner with VSNL to provide MPLS services in India. *MPLS: Technology that sets protocols and other standards for high-speed label switching in large networks; enables construction of IP-VPNs that use labels, not IP addresses, to determine destinations. About VSNL Videsh Sanchar Nigam Limited, first telecom service provider in the world to get the prestigious TL 9000 certification, is India's leading provider of International Telecommunications and Internet Services. As the country's leader in International Long Distance services and with a strong pan-India National Long Distance presence, VSNL is the leader in the Corporate Data Market in the country today with a strong service offering covering IPLCs, ILLs, Frame relay, ATM and MPLS based IP-VPN services. With established relations with over 80 carriers across the globe, VSNL today has a strong infrastructure base that covers multiple gateways, earth stations and submarine cable systems. Tata-managed VSNL is now rapidly growing its retail and corporate presence under the Tata Indicom brand through its products like high speed broadband, dial-up Internet, net telephony and calling cards, and has an internet subscriber base of over 8,00,000 subscribers. The Company also proposes to consolidate its presence in the Internet space by increasing its impetus on the Retail Broadband business. VSNL also offers a host of other valued added services that include Television / Video uplinking, Program transmission services, Frame relay services and Inmarsat services. The company has recently launched Bandwidth-on-Demand for its ILL customers which aims at meeting the short term urgent additional bandwidth requirements to almost double the capacity within a 48 hour timeframe, thereby enabling them to undertake and execute unforeseen new project opportunities within record time. VSNL is in the process of expanding its global presence and is setting up operations in Sri Lanka, Singapore, Europe and the United States of America. Its international connectivity capabilities, both undersea as well as satellite, offer the greatest diversity in India, which is critical for all customer segments, encompassing wholesale, corporate and retail. The company is augmenting its international connectivity by setting up a 3175 km undersea cable between Chennai and Singapore with a designed capacity of 5.12 tera bits. VSNL is listed across all the major stock exchanges in India and also has its ADRs listed on the New York Stock Exchange. (www.vsnl.com) About NTT Communications NTT Communications is the long-distance and international communications subsidiary of Nippon Telegraph and Telephone Corporation (NTT), one of the world's largest telecommunications companies. The NTT Com group is recognized as one of the top IP service providers worldwide, offering world-class IP services under the NTT/VERIO brand together with Verio Inc., its U.S.-based wholly-owned subsidiary. NTT Com's also offers Arcstar-brand global services for managed data and multimedia services. The company has garnered several awards for outstanding performance and customer service, including "Best Carrier - Asia Pacific" in 2002. For more information, please visit www.ntt.com.

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