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Chunghwa Telecom Selects FLAG Telecom in Open Tender for Taiwan Academic Network (TANET)

27 February 2006

FLAG Telecom, a leading provider of international wholesale network transport and communications services, today announced a multi-million dollar contract for 2 x 10 Gbit/s Wavelengths with Chunghwa Telecom, Taiwan's leading telecoms operator. Under the terms of the open tender contract, FLAG will provide full circuit, high quality connectivity to carry large volumes of voice, data and Internet traffic between Taiwan, R.O.C. and the West Coast of the United States on behalf of TANET, the Taiwan Academic Network. TANET connects four academic sites across Taiwan. TANET traffic will be carried from their LAN to the FLAG landing station in Taiwan by Chunghwa Telecom. This demand for connectivity is being predominantly driven by the continuing rapid growth of bandwidth-hungry Internet applications in East Asia.

FLAG Telecom will provide bandwidth on its FLAG North Asia Loop (FNAL) system between Taiwan and Japan where the FLAG cable network seamlessly connects with VSNL International's Trans-Pacific cable network, which will provide Trans-Pacific connectivity from Japan to the Equinix facility in Los Angeles and to the PAIX international Internet exchange in Palo Alto, California.

T. F. Leng, V.P., International Business Group, Chunghwa Telecom, said, "We selected the bid by FLAG Telecom as it offered a high quality, scaleable solution at a cost-effective price. Our connectivity will be carried entirely on the latest generation of terabit/s loop cable systems, providing additional resilience. FLAG is a significant supplier of international connectivity to CHT and the order on behalf of TANET is the latest milestone in our close working relationship with them."

Fabrizio Civitarese, VP Sales Asia Pacific, FLAG Telecom, said, "This is the latest in a series of open tender contracts we have won from Chunghwa Telecom (CHT) since 2002, which recently passed the milestone 70Gbit/s mark. Most of the Internet is still US-centric so CHT needed fast, reliable connectivity to the US West Coast to meet the enormous growth of Internet traffic in and out of Taiwan. Through our on-going relationship with VSNL International we are able to provide a one-stop shop solution for customers throughout Asia looking for quality connectivity to the USA."

Thomas Tai, Senior Vice President, Wholesale Data and Enterprise, VSNL International, commented, "As a leading provider of Trans-Pacific capacity, VSNL International interconnects with key Pan-Asian networks to provide high-quality, reliable and scaleable Trans-Pacific capacity solutions. Our relationship with FLAG Telecom enables us to jointly meet the region's current and future global bandwidth requirements. By connecting VSNL International's Trans-Pacific cable with the FNAL network in Japan, we not only seamlessly deliver traffic into the heart of metropolitan centres on the West Coast of the United States, but offer customers, such as CHT, the ability to rapidly connect to other global points of presence that meet their exacting quality requirements with cost-effective commercial arrangements."

About FLAG Telecom

FLAG Telecom, a member company of the Reliance Group, has an established customer base of more than 180 leading operators, including all of the top ten international carriers. FLAG owns and manages an extensive optical fibre network spanning four continents and 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. In the first international acquisition by the Group, FLAG Telecom became a Reliance Group company on 12 January 2004. Recent news releases and further information are on FLAG Telecom's website at: http://www.flagtelecom.com.

About VSNL International

VSNL International, the international division of Videsh Sanchar Nigam Limited (VSNL) and part of the Tata Group, is a leading international telecommunications company. With VSNL's recent acquisition of Teleglobe International Holdings and its subsidiaries, VSNL International becomes one of the world's largest carriers of international voice, which complements its recent emergence as the largest provider of submarine cable bandwidth. VSNL International provides the wholesale and enterprise sectors with key mobile, data and voice offerings. Teleglobe will continue to serve as the product brand for the Voice, Mobile and IP Transit wholesale services. VSNL International will remain the product brand for the Company's wholesale IPL and Ethernet offerings, as well as the full Enterprise portfolio.

VSNL has a global presence including operations in United States, Canada, United Kingdom, South Africa, Singapore, Sri Lanka and India, making it the first Indian 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 portfolio 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. (http://www.vsnl.in)

Forward-looking Statements

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Source: prnewswire