MUMBAI, India -- Reliance Communications Limited (RCOM) today announced its audited consolidated financial results for the quarter ended June 30, 2007. The highlights of financial performance are:

Commenting on the results, Mr Anil Dhirubhai Ambani, Chairman, Reliance Communications Limited, said:

"In the quarter under review, we have lined up many significant financial achievements. Our operating margin of 42% is now the highest of any telecom company in India. We have delivered the strongest profit growth of any telecom company in the country. Our EBITDA margin on a net revenue basis is 54%, which places us in the group of top 10 telecom companies globally. The return on the net worth has expanded to 36% this quarter with the increased utilization of resource base.

We are accelerating our wireless subscriber additions. The last month saw us adding 1.45 million subscribers, our highest ever net addition in any month. During the quarter, we added 3.87 million subscribers representing a market share of net additions of almost 20%. In the licensed areas where we operate both CDMA and GSM services, our market share of net additions was 32%.

We have also made substantial operational progress. We have embarked upon the world's largest telecom network roll out this year. Its completion by the end of the fiscal year will see the coverage of our wireless network expand to 23,000 towns and 600,000 villages with almost complete coverage of the country's rail and road networks. We have already committed 95% of this year's capex guidance of Rs. 10,000 crore (US$ 2.5 billion) to accelerate this roll out.

Our "Classic" handsets are already the #2 brand in the country. We have sold 5 million handsets in a short timeframe and our market share exceeds that of the next four players put together.

Going forward, we expect our extensive national coverage and unmatched bundled offerings to drive market share expansion."

Reliance Communications Ltd. (RCom)