Company Press Release:
 
                  T-Com signs contract with FLAG Telecom
                          for Europe-US bandwidth

London,  UK,  07 August 2006: FLAG Telecom, a subsidiary of India’s largest private  telecom  service provider Reliance Communications, today announced signing  of  a  contract  with  T-Com,  the Broadband / Fixedline strategic business  area  of  Deutsche  Telekom AG. Under this contract, FLAG Telecom would  provide  180  gigabits  (GB)  of  high quality connectivity to T-Com between  Europe  and  the  United  States  of America to meet their growing business requirements.

"FLAG  Telecom  is  delighted  to  complete  this  milestone agreement with T-Com,”  says  Gary  Adey,  VP  Sales Europe, FLAG Telecom. “We have worked closely  with  Deutsche  Telekom  to understand their needs while designing this flexible, scalable and high quality solution. The solution exacting to Deutsche  Telekom’s  customer service standards offers them excellent value
for money”.

This  additional  180 GB capacity will enable Deutsche Telekom to implement route  diversity between the key business centres of Europe and the US and, consequently,  offer enhanced scalability and reliability of service to its customers. Demand for voice, data, and Internet between these two extremely important  parts  of  the  world  has  been growing rapidly. The total used capacity  on  the  Europe-USA  route  has  grown at around 48% year on year between  2002  and 2006 and is expected to clock a similar or higher growth rate in the coming years.

“In   our  evaluation  FLAG  Telecom  has  proved  to  be  among  the  best transatlantic  providers  scoring  very  well  in  system  reliability  and flexibility,”  said Wolfram Pueschner, Executive VP Global Networks, T-Com. “FA-1’s   historical   performance  on  system  availability  and  MTTR  is excellent”.

FLAG  Atlantic 1 (FA-1) system, the first terabit trans-oceanic loop system providing direct service between New York, London and Paris, incorporates a fully  protected, multiple loop system with diverse fibre delivery offering up  to  2.4  terabit/s  of  resilient  and  high  performance  city-to-city capacity.
 


About FLAG Telecom
FLAG  Telecom is a member of the Reliance-Anil Dhirubhai Ambani Group whose interests  span  a  variety  of sectors including communications, financial services,  energy,  infrastructure  and  entertainment. FLAG Telecom has an established  customer  base of over 200 leading operators, including all of the  top  ten  international  carriers.  FLAG owns and manages an extensive optical  fibre  network  spanning  four continents, connecting key business markets  in  Asia,  Europe, the Middle East and the USA. FLAG also owns and operates  a  low-latency, global MPLS-based IP network, which connects most of  the  world's  principal international Internet exchanges. FLAG offers a focused range of global products, including global bandwidth, IP, Internet, Ethernet and Co-location services.

About Reliance Communications
Reliance  Communications,  a  member  of the Reliance Anil Dhirubhai Ambani Group    (Reliance    ADA    Group),   is   India's   foremost   integrated telecommunications  company  with over 21 million Indian and 500,000 global individual  consumers. Reliance Communications corporate clientele includes 600  Indian  and  250  multinational corporations, and – through subsidiary
FLAG Telecom - over 200 global carriers.

The  company  has  a  pan-Indian, next generation, integrated (wireless and wireline),  convergent  (voice,  data  and  video)  digital network that is capable  of  supporting best-of-class services spanning the entire Infocomm value chain.

About T-Com:
In  2005,  T-Com,  the  strategic  business area Broadband/Fixed-network of Deutsche  Telekom  AG,  was  able  to  drive the broadband business further forward. The number of DSL connections in Germany alone, compared with year end  2004,  grew by about 2,100,000 to 7.9 million (including resale of DSL upstream products of T-Com by third parties). Success until now is also the
result  of  marketing  activities  by  T-Com  and T-Online. With about 41.2 million narrowband connections and 8.5 million broadband connections, T-Com is one of the biggest fixed network suppliers in Europe.