SINGAPORE -- VSNL (NYSE: VSL), a leading communications solutionsprovider, announced today the company is constructing a new TGN Eurasia Cable System linking Mumbai directly toParis, London and Madrid via Egypt. The new cable system is being built in partnership with SEACOM and TelecomEgypt (TE), and will provide VSNL with 1.28 terabit of new capacity on this route during 2009.

The TGN Eurasia Cable System will offer express connectivity between India and Europe, and will also have futureoptions for additional connectivity in the Gulf region as well as multiple locations in Europe. The TE North solution wasselected based upon TE’s long experience in operating this route in a highly reliable fashion as well as offeringdiversity from both current and future consortium systems.When combined with VSNL’s significant capacity ownership on other cable systems and it’s privately owned TGNAtlantic and TGN-TIC cable systems, the TGN Eurasia Cable System will enable the company to offer seamless anddiverse connectivity between India, South East Asia, South Africa, Western Europe and the USA.

“The plans to build the TGN-Eurasia Cable System coupled with our recent announcement to build the TGN-Intra AsiaCable System is a major step towards VSNL’s vision to offer seamless global connectivity at affordable prices,” said MrVinod Kumar, President, Global Data Solutions, VSNL. “The TGN Eurasia Cable System will serve the increasingdemand for bandwidth in the region and offer more options for route diversity and redundancy. Moreover, the path willcomplement the SEA-ME-WE-3 and SEA-ME-WE-4 cable systems and will enable us to provide global expresscapacity solutions from India going West, and with TGN-TIC, from India going East.”

Videsh Sanchar Nigam Ltd. (VSNL) (NYSE: VSL)