Tata Communications Signs Equity Joint Venture Agreement with Shareholders of China Enterprise Communications Limited (CEC)

Business Editors/High-Tech Writers

SINGAPORE--(BUSINESS WIRE)--June 18, 2008--Tata Communications

International Pte Ltd., a wholly owned subsidiary of Tata

Communications Limited, has signed an Equity Joint Venture Agreement

(EJV) with the shareholders of China Enterprise Communications Limited

(CEC) for the acquisition of 50% equity interest in CEC. This joint

venture, which will become effective after the necessary approvals

from the relevant government and regulatory bodies in China are

obtained, will be the first-of-its-kind in the Chinese telecom sector

post China's entering the WTO.

"The strategic cooperation between China Enterprise Communications

Ltd. and Tata Communications was carried out under the background of

economic globalization, and the fact that China and India are driving

the 21st century world economy. Through the cooperation with Tata

Communications, we will focus on the development of the domestic

market to provide high quality networking service to multinational

enterprises in China as well as China's domestic enterprises. We

intend to grow the strength of the China Enterprise Communications

brand," said Zhu Jianhua, President & CEO of China Enterprise

Communications Limited.

CEC is a value-added telecommunications services and integrated IT

solutions provider headquartered in Beijing, China. CEC was recently

awarded a nationwide IP-VPN service license by China's Ministry of

Information Industry (MII), the first telecom valued-added service

license granted to a non-facilities based service provider. CEC has

network reach throughout China, with no regional restrictions on its

service capabilities. CEC provides VPN connectivity reach into 347

cities in China, including a dual-pop presence in tier-one cities like

Beijing, Shanghai, Guangzhou and Shenzhen. This reach complements Tata

Communications' VPN presence in 120 Indian cities and 19 other major

business capitals in North America, Europe and Asia.

"Tata Communications is honoured to have this unique opportunity

to establish an EJV with the shareholders of CEC and to become one of

the first global telecom companies to attain this type of access to

the Chinese market," said Vinod Kumar, President, Data and Mobility

Services, Tata Communications. "Tata Communications understands and

respects the complex, fast-changing and extremely competitive Chinese

telecom environment and the needs of customers requiring seamless

end-to-end connectivity. This is an innovative step in our ongoing

effort to enable connectivity and managed services across strategic

regions and emerging markets that are of high value to our global

customers."

"This is a historic investment," said Camille Mendler - Vice

President of Yankee Group's Enterprise Research Group. "Not only does

it allow for the delivery of unprecedented reach into China and India

for global enterprises, it also confirms Tata Communications' leading

position in service delivery to emerging markets."

CEC is majority owned by CITIC (China International Trust and

Investment Corporation); other investors of CEC include SASAC and

CE-SCM. Tata Communications' investment in CEC is subject to various

closing conditions as well as approvals from and the relevant Chinese

governmental and regulatory bodies, including but not limited to the

MII and the Ministry of Commerce.

About Tata Communications

Tata Communications Limited (NYSE:TCL) along with its global

subsidiaries (Tata Communications) is a leading global provider of the

new world of communications. The company leverages its Tata Global

Network, vertical intelligence and leadership in emerging markets, to

deliver value-driven, globally managed solutions to the Fortune 1000

and mid-sized enterprises, service providers and consumers.

The Tata Communications portfolio includes transmission, IP,

converged voice, mobility, managed network connectivity, hosted data

center, communications solutions and business transformation services

to global and Indian enterprises & service providers as well as,

broadband and content services to Indian consumers. The Tata Global

Network encompasses one of the most advanced and largest submarine

cable networks, a Tier-1 IP network, connectivity to more than 200

countries across 300 PoPs and more than one million square feet data

center space. Tata Communications serves its customers from its

offices in 80 cities in 40 countries worldwide. Tata Communications

has a strategic investment in South African operator Neotel, providing

the company with a strong anchor to build an African footprint.

The number one global international wholesale voice operator and

number one provider of International Long Distance, Enterprise Data

and Internet Services in India, the company was named "Best Wholesale

Carrier" at the World Communications Awards in 2006 and was named the

"Best Pan-Asian Wholesale Provider" at the 2007 Capacity Magazine

Global Wholesale Telecommunications Awards for the second consecutive

year.

Becoming the leading integrated provider to drive and deliver a

new world of communications, Tata Communications became the unified

global brand for VSNL, VSNL International, Teleglobe, Tata Indicom

Enterprise Business Unit and CIPRIS on February 13, 2008.

Tata Communications Ltd. is a part of the $29 billion Tata Group;

it is listed on the Bombay Stock Exchange and the National Stock

Exchange of India and its ADRs are listed on the New York Stock

Exchange (NYSE: TCL).

www.tatacommunications.com

About CEC

As one of the value-added communication solution providers, China

Entercom has a strong financial and regulatory background due to the

major shareholders being China International Trust and Investment

Corporation Group (CITIC) and State-owned Assets Supervision and

Administration Commission (SASAC).

Having full licenses covering IP VPN, ISP, call centre, on-line

transaction and multi-communication service operations, CEC provides a

wide range of telecom services and IT solutions based on our

nationwide IP VPN network, "CENet". CEC also integrates its own

network with China Express One which is now held by CITIC Group, to

provide value-added services and end-to-end managed services to

enterprises throughout the regions.

CEC's headquarter is located in Beijing and there are Chinese

regional branch offices in Shanghai, Shenzhen and Guangzhou. Due to

the increase in CEC's international partner business, a subsidiary

company for both sales and operations has been established in Hong

Kong. CEC has a fully functional 24x7 network operation centre in

Beijing, with also customer service centers located in other major

provincial cities namely Dalian, Qingdao, Ningbo and Xiamen.

Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata

Communications and its prospects, and other statements including those

relating to Tata Communications' expected financial position, business

strategy, the future development of Tata Communications' operations

and the general economy in India, are forward-looking statements. 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 Tata

Communications, or industry results, to differ materially from those

expressed or implied by such forward-looking statements. 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 Tata

Communications' 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 the company's communications

services, failure to integrate strategic acquisitions and changes in

government policies or regulations of India and, in particular,

changes relating to the administration of Tata Communications'

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 Tata

Communications' control, include, but are not limited to, those risk

factors discussed in Tata Communications' various filings with the

United States Securities and Exchange Commission. These filings are

available at www.sec.gov. Tata Communications is under no obligation

to, and expressly disclaims any obligation to, update or alter its

forward-looking statements.

--30--JD/ph*

CONTACT: Tata Communications

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