VSNL Completes Acquisition of Tyco Global Network

VSNL Completes Acquisition of Tyco Global Network
Acquisition Will Deepen VSNL's Penetration into the Global Market and Provide
Seamless Connectivity to Leading Businesses and Carriers 


MUMBAI, India and NEW YORK, July 1  /PRNewswire-FirstCall/ -- Videsh Sanchar
Nigam Limited, VSNL (NYSE:VSL), India's leading provider of international
telecommunications and internet services, today announced that it has completed
the acquisition of the Tyco Global Network (TGN), a state-of- the-art undersea
cable network that spans 60,000 kms (37,280 miles) and the continents of North
America, Europe and Asia. With the acquisition of TGN, VSNL is now one of the
world's largest providers of submarine cable bandwidth. VSNL acquired the
network for $130 million (not including the assumption of certain liabilities).

"This acquisition is another positive step in our ongoing drive to offer global
connectivity and efficient communications solutions for our customers," said
Mr. N Srinath, head of operations of VSNL. "Today's agreement confirms our
position as a leading global service provider. It also positions the Tata Group
as a leading entity that can provide seamless telecommunications and IT
services under a single umbrella for global enterprises."

VSNL is part of the $17 billion Tata Group, which last year listed Tata
Consultancy Services (TCS) on the Bombay Stock Exchange. TCS is Asia's largest
software service provider and system integrator.

Ongoing management responsibility of TGN will be assigned to VSNL
International, the division leading VSNL's expansion into key global markets.
VSNL International is rapidly growing its global footprint, with offices
currently in Virginia, New Jersey, London, Paris, Madrid, Amsterdam, Frankfurt,
Singapore and Tokyo.

"Our multinational clients require seamless connectivity around the globe and
customized network architecture," said Mr. Vinod Kumar, President, VSNL
International. "The combination of the TGN assets and the deep network
penetration of VSNL throughout India will allow VSNL to design customized and
scalable connectivity solutions between all the key global business centers,
through a single point of contact."

The agreement culminates a nearly eight-month process that included approval
from regulatory bodies in the United States and other countries.

About VSNL

Videsh Sanchar Nigam Limited (VSNL) is a leading provider of International
Telecommunications Services. VSNL is India's largest player in International
Long Distance services and has a strong pan-India domestic Long Distance
presence. VSNL is also a leading player in the Corporate Data Market in India
today with a strong service offering covering IPLCs, ILLs, Frame relay, ATM and
MPLS based IP-VPN services. VSNL has a strong infrastructure base that covers
multiple submarine cable systems, switching gateways, IP PoPs and earth
stations.

With its recent acquisition of Tyco's global submarine network, VSNL provides
seamless connectivity across the globe to carriers and enterprises. VSNL has 30
Points of Presence in 12 countries in North America, Europe and

Asia. VSNL also has business operations in Sri Lanka and Nepal and is soon
entering South Africa.

In India, VSNL is rapidly growing its retail 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
750,000 subscribers. VSNL is consolidating its presence in the Internet space
with an increased focus on the Retail Broadband business.

VSNL is listed on the major stock exchanges in India and also has its ADRs
listed on the New York Stock Exchange. (http://www.vsnl.in/) 

DATASOURCE: Videsh Sanchar Nigam Limited (VSNL)



CONTACT:  Greg Jawski of Financial Dynamics, [phone], or mobile,

[phone], , for Videsh Sanchar Nigam Limited (VSNL)



Web site:  http://www.vsnl.in/ 

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