GlassHouse and FLAG ink landmark Partnership

• To set-up Infrastructure Operating Center (IOC) in India

• FLAG to launch new suite of managed hosting services

• To provide Managed IT services include Remote Monitoring

• To jointly develop New Storage Services

Mumbai, November 27, 2007: FLAG Telecom Group Limited, a subsidiary of Reliance Communications Limited, today announced the signing of a bilateral agreement with US-based GlassHouse Technologies, an independent IT infrastructure consulting and services firm providing managed IT services directly to enterprise customers.

Punit Garg, Chief Executive of FLAG, said, "GlassHouse provides a new suite of services which will complement FLAG's existing hosting capabilities. The partnership enables FLAG and GlassHouse to offer a multi-vendor remote storage services suite with an unmatched reach at lowest Cost of delivery to the enterprise market.”

Under the agreement, FLAG Telecom and GlassHouse will jointly provide remote fully managed storage services including remote monitoring, reporting, and management of customer environments. GlassHouse's solutions and services, independent of the manufacturer of the storage platform, are constructed at a detailed level to enable them to become part of FLAG Telecom's standard solutions portfolio. In addition, FLAG and GlassHouse will continue to jointly develop new storage services complementing the existing services suite.

Mark Shirman, Chief Executive of GlassHouse, said, "The partnership with FLAG is core to our managed services strategy. We are excited to combine FLAG's state of the art infrastructure with our managed services capabilities to create a compelling, competitive service offering."

FLAG will resell GlassHouse's managed storage services as part of a new suite of hosting services. GlassHouse is expanding their Infrastructure Operations Center (IOC) to include the FLAG campus in India. The IOC will be continually staffed by FLAG employees in a managed service outsourcing relationship and provide significant operating cost reduction. The partnership agreement, signed initially for a period of three years, would enable both FLAG and GlassHouse to effectively target the Storage Services Space, estimated to be worth over $30 Bn (Rs. 1,20,000 Crore) by March 2008.

About GlassHouse:
GlassHouse Technologies is an independent IT infrastructure consulting and services firm focused on transforming IT environments to a service oriented infrastructure. TransomSM, GlassHouse's proprietary methodology, aligns business processes and information technology systems, transforming our clients' existing infrastructures into scalable, compliant, cost-efficient and tightly organized environments. Whether focused on data centers, data infrastructure management or managed services, GlassHouse consultants architect, implement and operate IT environments to drive high performance and agility. GlassHouse clients include Morgan Stanley, State Street Global Advisors, Allianz, AIG, Tel Aviv University, Reed Elsevier, Zamil Steel, Amgen, Biogen, T-Mobile, Turk Telekom, Virgin Atlantic, and Israeli Defense Forces.

About FLAG Telecom:
FLAG Telecom, a subsidiary of Reliance Communications, 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