European Competitive Telecommunications Association

Singapore  October 25, 2006 - VSNL International announced today that it is the first global Ethernet service provider to achieve Metro Ethernet Forum (MEF) certification. The Iometrix test laboratory certified VSNL International's Dedicated Global Ethernet Service to be internationally compliant to the MEF 9 specification of the MEF, the pre-eminent industry organization dedicated to facilitating the adoption of Carrier Ethernet Services.

VSNL International's Dedicated Global Ethernet service was tested by Iometrix between New York, London, Tokyo and Mumbai and was certified as compliant to the MEF 9 certification after successful performance against 244 test cases.

"VSNL International is focused on delivering global, national, and metro Carrier Ethernet services to our worldwide customer base," says N. Srinath, Executive Director of VSNL Singapore Pte Ltd., the holding and operating company of VSNL International. "We are extremely pleased to be the first global provider to receive the MEF 9 certification. This provides our customers and carrier partners the confidence that our global Ethernet service will provide the performance, reliability, and low cost of ownership that they require."

Dedicated Global Ethernet is a Layer 2 Ethernet service available to the Enterprise and Wholesale markets, connecting 18 global business centers in 11 countries and cities across India with flexible, reliable and secure Ethernet from 2 Mbps to 1,000 Mbps. Utilizing an Ethernet over SONET/SDH platform to ensure low latency, low jitter and high reliability, Dedicated Global Ethernet lowers customers total cost of ownership by providing the exact bandwidth required through flexible Fast-E and Gig-E ports and allowing upgrades to bandwidth without affecting service.

"When an Ethernet service receives MEF certification, customers are assured that the service will be compliant with the technical specifications established by the MEF," says Nan Chen, President, Metro Ethernet Forum. "We are honoured to present VSNL with this critical recognition and welcome them as the first Carrier Ethernet provider to receive MEF 9 certification for services verified to span the globe."

MEF certification tests are designed to ensure the Carrier Ethernet services meet the functionality and conformance criteria critical for carrier-grade service. These criteria are developed by a cross section of industry leaders through the rigorous MEF working group processes. Such services must use MEF certified equipment in order to qualify for certification.

"In terms of sheer breadth of coverage, VSNL International's certification shows that compliant services can cover the world," said Bob Mandeville, President of Iometrix, the MEF authorized certification lab. "VSNL International has reached a landmark achievement with the first global Ethernet service to be recognized by these standards."

VSNL International's standards-compliant Dedicated Global Ethernet combines the flexibility and features of Ethernet with the proven reliability and high performance of SDH/SONET to create robust, secure, carrier grade Ethernet Virtual Private Line (EVPL) and Ethernet Private Line (EPL) services. Dedicated Global Ethernet is carried across the VSNL owned and operated global and India fiber optic infrastructure, providing unsurpassed circuit Quality of Service (QoS). VSNL International's network literally circles the globe, enabling the best possible latencies into any region of the world.

The MEF certification was presented to VSNL International at a ceremony which took place at the Light Reading Ethernet Expo in New York City today.

About VSNL International
VSNL International is a global communications services provider offering a comprehensive suite of communications solutions for carriers that need global reach and reduced total cost of ownership.

VSNL International's Global Network spans 4 continents, comprises major ownership in 206,356km of terrestrial network fiber and subsea cables, and offers the greatest diversity to, and within, India. With Trans-Atlantic and Trans-Pacific data transfer capacity of 1 trillion bits per second and a worldwide MPLS network, VSNL's footprint creates an unparalleled platform to deliver scalable connectivity to the key global business pathways.

VSNL International is a part of the Tata Group, a $22 billion global conglomerate comprising 93 operating companies. VSNL International headquarters are in Singapore with regional offices in the US, Europe, and India. Visit us at www.vsnlinternational.com.

VSNL International's parent company, Videsh Sanchar Nigam Limited, is listed on the major stock exchanges in India and also has its ADRs listed on the New York Stock Exchanges. (www.vsnl.in)

About the Metro Ethernet Forum (MEF)
The MEF is an international, non-profit organization whose mission is to accelerate the worldwide adoption of carrier Ethernet networks and services. The MEF has over 90 international companies as members, including VSNL, who all work together to develop standards for Ethernet. It is against these standards that our services were tested and certified. Additional information about the MEF and its standards is available on its website at www.metroethernetforum.com.

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.

Media Contacts

VSNL International
Megan Cannell
+1 609 750 3262
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STC Associates
Carolyn M. Robertson
+1 212 725 1900 ext. 204
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STC Associates
Kristen Massaro
+1 212 725 1900 ext. 229
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