Vanco and FLAG Announce Strategic Partnership

FLAG VPN network to cover over 100 countries across continents

Mumbai, Tuesday, September 18, 2007 : FLAG Telecom Group Limited (FLAG), a subsidiary of Reliance Communications Limited, today announced signing of a five-year agreement with UK-based Vanco, the pioneering global Virtual Network Operator (VNO). This agreement will result in considerable enhancement of FLAG’s VPN access across areas where it is not present currently. Vanco will also benefit by access to FLAG's global service capability across India and the Middle East.

Speaking on the benefits of this announcement Mr. Punit Garg, President of FLAG, said, "Vanco provides significant enhancement to our already extensive cable network, fulfilling the reach that our customers are looking for. This agreement provides FLAG and its customers access to a further 81 countries allowing us to extend our network to over 100 countries across the globe."

MPLS (Multi -Protocol Label Switching) gives network operators a great deal of flexibility to divert and route traffic around link failures, congestion, and bottlenecks that further enhance the high levels of service standards currently offered by FLAG especially connecting developing markets like India and the Middle East to the developed markets.

Explaining the strategic value of the tie-up Mr. Allen Timpany, Chief Executive of Vanco said, "There is a great deal of synergy in our businesses. Vanco is fast becoming the definitive partner for Asset Based Carriers (ABC) like FLAG Telecom, who are looking to extend their physical networks and offer their customers global solutions. Likewise, our customers will benefit from FLAG’s strong coverage, especially into India and the Middle East, which are among the fastest growing markets in the world.“

About FLAG
FLAG Telecom Group Limited, a subsidiary of Reliance Communications Limited, owns and operates the world’s largest private undersea cable system spanning 65,000 route kilometers and four continents. FLAG has an established customer base of more than 200 leading services providers, content providers and channel partners.

This extensive network serves as a Global Service Delivery Platform connecting 37 key business markets in India, the Middle East, Asia, Europe, and the USA through an overlay low-latency, global MPLS-based IP network. FLAG offers a focused range of products, including Managed Bandwidth, IP VPN, IP Transit, Global Ethernet and Co-location services.

FLAG’s Global Ethernet service is a fundamental enabler of its Global Service Delivery Platform, providing a next generation multi-service wide-area-network (WAN) to transport Voice, Video and Data traffic reliably, conveniently and economically to global destinations using Ethernet technology. For more information please visit www.flagtelecom.com

About Vanco
Established in 1988, Vanco Plc (FTSE: VAN) is the pioneering and leading global Virtual Network Operator. Vanco does not own telecoms assets and therefore has the freedom to source infrastructure from the most suitable Asset Based Carriers (ABCs) on a global basis. It provides enterprise clients, directly or through partners, with cost-effective, optimized and fully managed network solutions. Carriers can also extend their off-net reach by accessing, through Vanco, other carrier networks around the world.

With solutions available in 230 countries and territories, Vanco is selected by the world's largest organizations to provide strategic network solutions. Its clients include Accor Hotels, Avis Europe, British Airways, Continental, Ford Motor Company, IBM/Lloyds TSB, Siemens, Pilkington and Virgin Retail.

Through the Vanco network solution clients get access to the greatest geographic coverage available through a single provider. Vanco offers incomparable flexibility to customize and adapt the solution in line with market changes and business priorities. For more information please visit www.vanco.com.

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