Reliance Communications Completes Acquisition of US based Yipes Holdings, Inc. (Yipes) through FLAG Telecom

Reliance Communications Ltd has announced that the Company received approval from the Federal Communications Commission (FCC) for the merger of U.S. - based Yipes Holdings, Inc. The FCC is an independent United States government agency charged with regulating interstate and international communications by radio, television, wire, satellite, and cable. Reliance Communications announced the U.S. $ 300 million acquisition of Yipes in July 2007. The transaction, closed on December 19, 2007, is a key milestone in Reliance Communications' plan to become a global data communications leader.

The combination of Yipes' enterprise Ethernet services; the private undersea cable system of FLAG Telecom, a subsidiary of the Company; and Reliance's commitment to expansion and growth will enable the creation of a global service - delivery platform with unmatched coverage and capability. Yipes' customers will enjoy broader coverage, access to more international markets, and the rollout of new innovative services.

Punit Garg, President, Global Business, Reliance Communications & CEO, FLAG Telecom said, "FCC approval is an important step for Reliance to accelerate its plans to expand Yipes' coverage in the U S domestic market. This step also paves the way to extend Yipes' services worldwide over FLAG's global next-generation network, creating significantly more value from our undersea network assets in the strongholds of India, the Middle East, and East Asia."

With the acquisition of Yipes, the Company will accelerate its penetration into the lucrative $100 billion global enterprise and institutional data services market and will be better able to serve its international customers directly in the U. S.