FOR IMMEDIATE RELEASE

VSNL International Launches IP Point of Presence in Singapore

Expands Global IP Reach to 270 PoPs

Singapore -- (BUSINESS WIRE) -- July 17, 2006 - VSNL Singapore Pte Ltd. ("VSNL International"), the international arm of Videsh Sanchar Nigam Limited (NYSE: VSL) operating in key global business hubs and offering a comprehensive suite of communications solutions for enterprises and carriers, announces today the launch of its new Singapore IP PoP (Point of Presence) at the Equinix Internet exchange center. This IP PoP expansion brings VSNL International's total number of global IP PoPs to 270, with 200 Points of Presence in India alone and an additional 70 in more than 44 cities around the world.

"This launch is the first initiative of a larger strategic plan to expand VSNL International's IP footprint and local presence in the Asian marketplace," comments Vinod Kumar, President, VSNL International. "We are committed to serving our Asian customers' increased demand for high speed dedicated access to a premium quality, truly global IP network."

With the acquisition of Teleglobe earlier this year, VSNL International now owns the ASN6453 network, which ranks in the top ten of all global autonomous systems, with over 160 peering links providing 150 Gigabits of peering connectivity and enabling single hop access to all routes. The robust high-speed OC-192 backbone offers land, sea and sky connectivity with presence on six continents and availability in 106 countries.

"Our IP Transit Service, coupled with the recently acquired Teleglobe ASN6453 network, is designed especially for Internet Service Providers and content providers requiring high speed direct interconnections with low latency and seamless connectivity to a single network," adds Thomas Tai, Senior Vice President, Asia Pacific for VSNL International. "The new Singapore PoP will allow Asian providers to conveniently and economically connect to our IP network and enable their customers to benefit from an enhanced Internet experience."

The Singapore PoP is currently operational and will be linked to a series of additional points of presence throughout Asia that are scheduled to be launched later this year, offering VSNL International customers additional route diversity throughout the Asia Pacific region.

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 $17.8 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.

On February 13, 2005, 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. 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.