The launch event was attended by leading dignitaries, community leaders, and the South Asian media.

The long distance market to South Asia is divided into two categories: prepaid phone cards and direct-dial carriers. Value Communications Corporation promises to beat the prices offered by direct-dial carriers with an extremely aggressive pricing plan, while maintaining the simplicity and high quality of direct dialing. Consumers will now be able to dial to over 200 international destinations without the hassle of a calling card or PIN numbers using the newly launched VC DIRECT(TM) service.

Commenting on the new service, Arvind J. Singh, Chief Executive Officer of Value Communications Corporation said, ``This is a truly innovative product in response to the needs of the South Asian consumer in the United States. It stems from our undying belief that we need to provide our customer significant savings, ease of use and ultimate flexibility in calling. That, to us, is true value.'' He further quips, ``The South Asian customer is very discerning. They are smart, and always know a good deal when they see one. We need to reach out to them as we have attempted to over the last five years.''

The offer is indeed compelling. There are several plans a customer may choose from depending on their needs. A caller to India, for example, can get connected to any city for just 39.9 cents a minute, all-inclusive, on the national plan, or 29.9 cents to certain specific cities on the city plan. There are no additional charges. On the contrary, direct-dial companies typically charge multiple additional fees and taxes over and above their advertised rates.

Says Singh, ``This is a key differentiator between us and our competition - we want consumers to realize the significance of their savings with the VC DIRECT(TM) service because they often overlook the additional charges they pay their long distance provider. For example, an advertised rate of 53 cents per minute by AT&T and MCI translates to about 68 cents a minute when you figure in all the additional charges in fine print! Compare that with our offer, and you will see why our customers save as much as 60% over other direct-dial companies.''

With the VC DIRECT(TM) service, the consumer need not even switch their existing carrier. ``We can now provide our customers the simplicity of direct dialing without the hassles of switching long distance carriers or remembering and punching in long PIN numbers. The customer simply dials a toll free number followed by their destination number. It's that easy!'' says Sandeep Shrivastava, President and Chief Operating Officer of the company. He adds, ``Our customer also has the flexibility to charge their account conveniently through a credit card on our web site (www.valucomonline.com) or through our friendly customer care group using our toll free number, 1-888-VALUCOM.''

As part of the added value, the company also assures users of the freedom to call from multiple phone lines. ``Our service allows the customer to take the savings with them to their cell phone or even their work phone. We know more and more, our customer is on the road and uses the cell phone primarily to stay in touch. This is an edge over AT&T, MCI or any other direct-dial carrier, that restricts calls from a home line only,'' adds Shrivastava.

Pursuant to their commitment to drive this market, Value Communications Corporation intends to launch the new VC DIRECT(TM) service in South Asian media in the U.S., by way of a hard hitting campaign. The focus of the advertising message is to explain the simplicity of use and comparative savings realized over direct-dial companies like AT&T or MCI. A launch campaign comprising of Print, TV, Radio and Internet has been developed by Value Communications Corporation's New York based advertising agency 1947 Communications Inc.

About Value Communications Corporation

Founded in 1996, Value Communications Corporation (www.valucomonline.com) has been a successful player in the international long distance category. The company focuses on Internet-based marketing of international telecom services to Indians and South Asians in the United States. Their initial foray in international calling services came in the form of pre-paid calling cards that provided high quality, and reliable service via virtual PIN numbers. The company has since delivered significant value to their customers through innovative pricing, no frills calling plans, and a breadth of products. Value Communications Corporation is a wholly owned subsidiary of Rediff.com India Limited (Nasdaq: REDF - news), one of India's leading Internet portals focusing on India and the global Indian community.

Value Communications Corporation is led by Arvind J. Singh, CEO, a graduate of The Anderson School of Management at UCLA and a former executive with Kraft Foods, Inc., and Sandeep Shrivastava, President and COO, a graduate of The Wharton School and a former executive with Ameritech Corporation and General Mills, Inc.

About Rediff.com

Founded in 1996, Rediff.com India Ltd., (Nasdaq: REDF - news) is one of the leading Internet, communications and media companies serving over one billion global Indians, both online and offline. Through its online and offline product and service offerings Rediff.com offers interest specific channels, local language editions, sophisticated search capabilities, online shopping, long distance calling cards and Internet based telephony services. It's news publication, India Abroad, is one of the oldest and largest South Asian weekly newspaper serving the Indian American community in the United States. The company also provides users extensive Internet community offerings all tailored to the interests of Indians worldwide. Rediff.com has offices in New York, Chicago and New Delhi and is headquartered in Mumbai, India.

Safe Harbor Statement

Except for the 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 competition, acquisitions, attracting, recruiting and retaining highly skilled employees, technology, law and regulatory policy and managing risks associated with customer projects 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 and its wholly owned subsidiary Value Communications Corporation undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. This report is available at www.sec.gov.

Value Communications Corporation
Richa Shrivastava, 847/367-1928
richa.shrivastava@us.rediff.com