March 31, 2004

News Release: Rediff.com and Yahoo! India Enter Into Strategic Alliance

Rediff.com India Limited (Nasdaq:REDF) and Yahoo! India (www.yahoo.co.in), the two leading Internet portals in India, today announced a strategic alliance to jointly promote online shopping and mobile content across both the portals. Under the agreement, Rediff.com will power the Yahoo! India shopping channel while Yahoo! India will showcase their prime content like ringtones, polyphonic tunes, wallpapers and java games among others on the Rediff.com website where Rediff.com users shall be able to download this content through the Yahoo! India shortcode 8243. This content will be in addition to Rediff Mobile premium content currently available on the Rediff shortcode 7333. The association leverages the combined strength of the two leading portals who together reach a significant majority of Internet users in India.

'We are happy to be partnering with Rediff.com for the greater good of the Indian netizens. It's the Indian net user, which will gain from the combined synergies and strengths of Rediff.com and Yahoo! India. Our alliance marks the beginning of a new era in Indian cyber space,'said Neville Taraporewalla, Country Manager, Yahoo! India.

According to Ajit Balakrishnan, Chairman and CEO Rediff.com, 'This association collectively leverages our mutual strengths to the benefit of online users across India. We are glad to extend our comprehensive shopping catalog in a safe and secure online environment to Yahoo! users in the belief that this marks a new beginning to online retail commerce in India.'

Rediff.com is one of the most comprehensive and foremost Internet destinations providing an exhaustive range of online services to Indians worldwide, including online shopping at the Rediff Marketplace. Yahoo! shoppers will now have access to the Rediff Marketplace which has over 100 shops across 30 product categories. Yahoo! users will now be able to buy and gift products and accessories of leading international brands like Nike, Arrow, Tissot, Phillips, Casio among others to their friends and families across 800 locations in India. The Rediff Marketplace provides Yahoo! shoppers to choose from the widest range of payment options in a safe and secure environment starting from the popular 'cash on delivery'payment system to credit and charge cards, cheques, demand drafts and direct debit to bank accounts of banks like ICICI, HDFC, UTI, IDBI, GTB, Federal and Centurion Bank.

Yahoo! India has established itself as the pioneering and leading Internet portal providing value added services to mobile phone users across the country. Y! India Mobile currently reaches out to over fifteen million mobile subscribers through leading cellular operators in India including Airtel, Hutch, Orange, Idea, RPG, Escotel, Oasis and Spice Telecom. Y! India Mobile will now offer an additional range of value added mobile services to Rediff.com users across the country through the use of the shortcode 8243.

Yahoo! Mobile has alliances with more than 50 carriers and manufacturers in 26 countries, and provides a variety of leading wireless services to consumers around the world. Yahoo! is developing engaging mobile services for the technology platforms that best serve the world's mobile users, including SMS, WAP, Web, MMS and Java interfaces.

About Rediff.com

Rediff.com (www.rediff.com; NASDAQ: REDF) is one of the premier worldwide online providers 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 Yahoo! India

Yahoo! India (www.yahoo.co.in), launched in June 2000, is an Internet guide designed specifically for netizens in India and for users abroad with a special interest in India. It is the 23rd world property in Yahoo!'s comprehensive global network. Yahoo! attracts the largest traffic of netizens in India .With over 30 million registered users Yahoo! features a directory of Web sites organised by a team of Web surfers into 14 easy-to-use categories and communication properties. To further meet the needs of local consumers, Yahoo! India offers comprehensive local and global information in the areas of news, finance, cricket, mobile, movies and greetings. Today, Yahoo! India has an enviable client list comprised of leading advertisers and corporate clients across a host of industries and has a robust and fast growing business in Wireless services enabling several of its offerings through leading Network operators.

Safe Harbor Statement

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 US and Indian economies 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 policy, 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.

SOURCE: Rediff.com India Limited

Yahoo! India Samir Saraiya, 91-22-56622212 Fax: 91-22-56622244 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or Rediff.com India Limited Debasis Ghosh, 91-22-24449144 Fax: 91-22-24455346 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

WEBSITE EMAIL