Rediff.Com Net Income Rises to US$2.12 million

Rediff.com India Limited today announced its financial results for the first quarter ended June 30, 2007.

Total revenues for the quarter ended June 30, 2007 totaled US$6.8 million, an increase of 18% over revenues from the quarter ended June 30, 2006. India Online revenues, which include advertising and fee-based revenues, for the quarter ended June 30, 2007 totaled US$4.62 million, an increase of 14% compared to India Online revenues for the quarter ended June 30, 2006. US Publishing revenues for the quarter ended June 30, 2007 totaled US$2.18 million, an increase of 27% over US Publishing revenues for the quarter ended June 30, 2006. Gross margins for the quarter ended June 30, 2007 as well as for the quarter ended June 30, 2006 were 78%.

Operating EBITDA decreased to US$0.61 million for the quarter ended June 30, 2007, compared to US$0.95 million for the quarter ended June 30, 2006. Net income for the quarter ended June 30, 2007 was US$2.12 million, or 7.26 cents per ADS, compared to a net income of US$1.98 million, or 6.82 cents per ADS, for the quarter ended June 30, 2006.

Registered users of Sify grew to 56.6 million as of June 30, 2007, a 26% increase over the number of registered users as of June 30, 2006.

The number of companies advertising on Rediff’s website for the quarter ended June 30, 2007 totaled approximately 172, as compared to approximately 166 during the same quarter in the prior fiscal year.

Revenues for the quarter ended June 30, 2007 increased by 18% to US$6.8 million, as compared to US$5.78 million in the same quarter last fiscal year. Revenues from India Online, which comprised online advertising and fee-based services, increased by 14% to US$4.62 million during the quarter ended June 30, 2007 compared to US$4.06 million during the same quarter last fiscal year.

Revenues from US Publishing for the quarter ended June 30, 2007 increased by 27% to US$2.18 million from US$1.72 million during the same quarter last fiscal year. Gross margins remained the same at 78% for the quarter ended June 30, 2007 and for the quarter ended June 30, 2006.

Net Income for the quarter ended June 30, 2007 was US$2.12 million, or 7.26 cents per ADS, compared to a net income of US$1.98 million, or 6.82 cents per ADS, for the same quarter last fiscal year. Total cash and cash equivalents and short term deposits with banks as of June 30, 2007 was approximately US$58.93 million.

Rediff.com is one of the premier worldwide online providers of news, information, communication, entertainment and shopping services to Indians worldwide. Rediff.com provides a platform for Indians worldwide to connect with one another online. Founded in 1996, Rediff.com is headquartered in Mumbai, India with offices in New Delhi and New York, USA.

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