Teleglobe, a VSNL International Company, and Mobile Tornado Announce Agreement to Provide Push To Talk over Cellular (PoC) as a

Teleglobe, the leading provider of international
telecommunications services to Internet Service Providers and to fixed
and mobile network operators, and Mobile Tornado International Ltd., a
leading software vendor providing convergent instant communications
solutions to service providers, today announced an agreement to
develop the ability for Teleglobe to offer Mobile Tornado Push To Talk
over Cellular (PoC) as a hosted managed service for Mobile Network
Operators. Teleglobe was acquired by Videsh Sanchar Nigam Limited
("VSNL") (NYSE:VSL) on February 13, 2006, and is now a part of its
international division, VSNL International.
   "PoC as a hosted managed service will enable mobile operators to
launch PoC services more rapidly, with lower investment, and at lower
risk than the alternative of acquiring, integrating, and operating PoC
internally," said Allan Chan, Executive Vice President Mobile Services
at VSNL International. "A hosted PoC service can be rapidly introduced
by mobile operators and enterprise businesses."
   "Our agreement with Teleglobe should dramatically lower the
business thresholds and shorten the timelines for operators and
enterprise businesses to generate profitable services using the Mobile
Tornado Push to Xperience(TM) platform," said Stuart Kelly, Vice
President of Sales at Mobile Tornado. "PoC as a hosted managed service
lets the operator focus its scarce resources on building business
through service design and marketing, while retaining the option to
support PoC in-house if that becomes attractive in the future."
   Push To Talk over Cellular is expected to show strong growth as a
value-added mobile service. According to Visiongain's Push to Talk:
Market Analysis and Forecast 2005-2010, PoC-capable handset sales are
forecasted to ramp from 20 million in 2005 (5% of total sales) to 130
million in 2009 (nearly 28%). At the same time, Visiongain forecasts a
global diffusion of PoC-capable handset sales from a 77% concentration
in North America (2004) to only 21% in North America (2009).

   About Mobile Tornado:

   Mobile Tornado (established in 1999) is the leading independent
software vendor providing convergent instant communication solutions
to the service provider and enterprise markets. Delivering cost
effective, reliable, high quality with its Push to Xperience(TM)
platform, Mobile Tornado enables operators to offer Push To Talk, Push
To Email and Push To Video services. Mobile Tornado's patented and
standards based technology provides superior performance, security,
interoperability and reliability. Mobile Tornado's solutions are
currently deployed in four continents over packet-based GPRS, CDMA 1X,
WLAN and 3G networks.
   Mobile Tornado has offices in Ireland, United Kingdom, Israel and
USA with global partnerships with Alcatel, Comverse, Nortel, Sony
Ericsson and T-Systems. More information about Mobile Tornado is
available at www.mobiletornado.com.

   About Teleglobe and VSNL

   On February 13, 2006, Videsh Sanchar Nigam Limited, VSNL
(NYSE:VSL), completed its acquisition of Teleglobe International
Holdings Ltd. and all of its subsidiaries. The Teleglobe name will
continue to serve as a service brand for VSNL International wholesale
communications services. For further information on the transaction or
VSNL International please visit www.vsnlinternational.com.
   Videsh Sanchar Nigam Limited (VSNL), a part of the Tata Group, is
a leading international telecommunications company. VSNL has, with the
acquisition of Teleglobe, become one of the world's largest carriers
of international voice, complementing its emergence as the largest
provider of submarine cable bandwidth.
   VSNL has a global presence including operations in USA, Canada,
UK, South Africa, Singapore, Sri Lanka and India making it the first
Indian truly global telecommunications company. Its range of service
offerings include wholesale voice, private leased circuits, IP, MPLS,
VPN, Internet access, hosting, mobile signaling and several other IP
services. The company is now poised to offer managed data services and
deliver end-to-end telecommunications solutions to carriers and
enterprises globally.
   VSNL, a pioneer in offering Internet services to individual
customers now offers a full slew of retail products in India like
high-speed broadband, dial-up Internet, Wi-FI, net telephony and
calling cards under the Tata Indicom brand name, and continues to be
one of the leading retail Internet players in India.
   VSNL is listed on the major stock exchanges in India and also has
its ADRs listed on the New York Stock Exchange. (www.vsnl.in)

   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. Such statements involve known and unknown
risks, uncertainties and other factors, 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, changes in
government policies or regulations of India and, in particular,
changes relating to the administration of VSNL's industry, and changes
in general 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.