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Rediff.com Sells ValuCom To WorldQuest: To Focus On The India Online Business

MUMBAI, India--(BUSINESS WIRE)--April 12, 2004--Rediff.com India Ltd. (Nasdaq:REDF), the premier online provider of news, information, communication, entertainment and shopping services for Indians worldwide, today announced that it has sold its long distance phone card business to WorldQuest Networks Inc. (Nasdaq:WQNI)
Rediff.com had earlier announced that it continued to explore strategic alternatives for its ValuCom subsidiary, a provider of long distance phone card services.

"We have finally decided to exit this business segment and management will now concentrate in further growing and consolidating its India Online and US Publishing businesses," said Mr. Ajit Balakrishnan, Chairman and CEO.

Separately, Rediff.com and WorldQuest Networks entered into a year-long advertising engagement through which WorldQuest will have exclusive rights to prominent online advertising space on Rediff.com's US website.

About Rediff.com

Rediff.com is the premier worldwide online provider of news, information, communication, entertainment and shopping services for Indians with over 30 million registered users.

Known for being one of the first with news and providing accurate and trustworthy information, Rediff.com provides an ideal platform for Indians worldwide to connect with one another online fast. Rediff.com is committed to offering a personalized and a secure surfing and shopping environment.

Founded in 1996, Rediff.com is headquartered in Mumbai, India with offices in New Delhi and New York, USA.

About WorldQuest Networks, Inc.

Based in Dallas, WorldQuest Networks, Inc. is an international Internet telephony and money-transfer company. WorldQuest's customers utilize the company's network of Internet gateways and other traditional networks to place long-distance calls online at discounted rates, and to transfer money securely, conveniently and cost effectively to India, Sri Lanka, the Philippines and Russia. WorldQuest's Web site is www.wqn.com.

Safe Harbor

Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements." These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include but are not limited to the slowdown in the economies worldwide and in the sectors in which our clients are based, the slowdown in the Internet and IT sectors world-wide, competition, success of our past and future acquisitions, attracting, recruiting and retaining highly skilled employees, technology, legal and regulatory policies, managing risks associated with customer products, the wide spread acceptance of the Internet as well as other risks detailed in the reports filed by Rediff.com India Limited with the U.S. Securities and Exchange Commission. Rediff.com India Limited and its subsidiaries may, from time to time, make additional written and oral forward looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. Rediff.com India Limited does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

Contacts


Rediff.com India Limited
Debasis Ghosh, +91-22-24449144
investor@rediff.co.in

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