JANET(UK) Selects VSNL for High Bandwidth Global Internet Access

VSNL, a leading communications solutions provider, announced today
that JANET(UK), provider of JANET (the United Kingdom's national
network for research and education), has selected VSNL
Telecommunications UK Ltd. to supply high bandwidth global Internet
access for its wide range of education and research institutions
across the UK.

JANET connects the UK's universities, FE Colleges, Research
Councils, Specialist Colleges and Adult and Community Learning
providers to each other, as well as to the rest of the world through
links to the global Internet. VSNL will be providing an aggregate
capacity of 40 Gbps via four OC192 ports from two diverse locations in
London as part of a multiple year agreement.

"We are very pleased that JANET(UK) has selected VSNL to support
the growing Internet needs of the education and research community in
the UK," said Genius Wong, Vice President, Wholesale IP. "VSNL's
global IP backbone is engineered for scalability and designed to
minimize latency and increase network availability and security to
ensure an unmatched service quality for our customers. Service
providers and Multi-National Corporations with global Internet
requirements can supply their users with seamless connectivity and
sustained performance, with data taking the most direct route on the
Internet."

Tim Kidd, Head of Operations, JANET(UK) commented, "We chose VSNL
for its ability to offer truly global IP services, supported by one of
the largest high performance IP networks in the world. The increased
capacity allows JANET to immediately scale to support increased levels
of traffic, ensuring that the education and research community can
communicate effectively, with the highest quality Internet experience
available in the market."

The VSNL global IP network touts 700 Gbps of high-speed
OC-192/STM-64 IP Backbone Capacity throughout North America, Europe,
Middle East, South Africa and Asia. It offers "land, sea & sky"
Internet connectivity to customers spanning across 5 continents and
over 195 countries, carrying more than 380 petabits of traffic
globally per month.

With more than 80 global PoPs around the world, VSNL's Tier-1 IP
network is linked to our industry-leading India Internet backbone with
120 PoPs covering all states and major cities. Port speed is available
up to 10 Gbit/s with flexible billing options including fixed,
burstable or initial ramp-up bandwidth commitments.

Further information regarding VSNL's suite of global data
solutions can be found at www.vsnlinternational.com.

About VSNL

Videsh Sanchar Nigam Limited along with its subsidiaries ("VSNL")
is a member of the US$29 billion Tata Group. VSNL is a leading global
communications company offering next-generation voice, data and
value-added services to enterprises, carriers and retail consumers.

As one of the world's largest providers of wholesale international
voice services, VSNL operates one of the largest global submarine
cable networks with a presence in over 35 countries including the
United States of America, Canada, the United Kingdom, South Africa,
Singapore, Hong Kong, Sri Lanka and India. VSNL's customer base
includes 1,500 global carriers, 450 mobile operators, 10,000
enterprises, 500,000 broadband and Internet subscribers and 300 Wi-Fi
public hotspots.

VSNL's global transmission network of over 200,000 route
kilometers and its IP core with 200 points of presence, enables us to
offer a range of services that include voice, private leased circuits,
IP VPN, Internet access, global Ethernet, hosting, mobile signaling
and other IP services. Our philosophy of BusinessnRich drives us to
empower our customers to achieve enhanced value in their global
businesses.

VSNL (www.vsnl.com) is listed on the Bombay Stock Exchange and the
National Stock Exchange of India, and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange.

Forward-looking and cautionary statements

Certain words and statements in this release concerning VSNL and
its prospects, and other statements relating to VSNL's expected
financial position, business strategy, the future development of
VSNL's operations and the general economy in India, are
forward-looking statements. These forward looking statements include,
among others, statements concerning VSNL's communications and
information services business, its advantages and VSNL's strategy for
continuing to pursue its business, the anticipated development and
launch of new services in its business, the anticipated dates on which
VSNL will begin providing certain services or reach specific
milestones in the development and implementation of its business
strategy, the growth and recovery of the communications and
information services, industry, expectations as to its future revenue,
margins, expenses and capital requirements and other statements of
expectations, beliefs, future plans and strategies, anticipated
developments and other matters that are not historical facts. 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 VSNL, or industry
results, to differ materially from those expressed or implied by such
forward-looking statements. Such forward-looking statements are based
on numerous assumptions regarding VSNL's present and future business
strategies and the environment in which VSNL will operate in the
future. 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 VSNL's 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
VSNL's communications services, failure to integrate strategic
acquisitions such as the Tyco Global Network and Teleglobe
International Holdings Limited and changes in government policies or
regulations of India and, in particular, changes relating to the
administration of VSNL's 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 VSNL's
control, include, but are not limited to, those risk factors discussed
in VSNL's various filings with the United States Securities and
Exchange Commission. These filings are available at www.sec.gov.