For Immediate Release Thursday, January 29, 2009

Television Eighteen India Limited (Listed Subsidiary of Network18)

Q3 FY 2008-09

· WEB18 CONFIDENTIALLY SUBMITS A DRAFT REGISTRATION STATEMENT FOR IPO OF AMERICAN DEPOSITARY SHARES (see Enclosed Press Release)

· IN.COM SURPASSES MORE THAN 400 WEBSITES WORLDWIDE (Source: Alexa.com); BECOMES SECOND LARGEST INDIAN PORTAL (Source: Comscore December 2008)

· WEB18 IS THE SECOND LARGEST INDIAN INTERNET DESTINATION (Source: Comscore December 2008)

o Internet Business Revenues Up 14.59% (QoQ)

· WEAK OPERATING PERFORMANCE BY BUSINESS NEWS CHANNELS IN EXCEPTIONALLY TOUGH QUARTER:

o Revenues Down 23.95% (QoQ)

o Operating Margins Drop To 23.66%

o Q4 Likely To Be Weak, Since Full Presentation Of Union Budget To Take Place After General Elections

· BUSINESS CHANNELS DOMINATE THE GENRE WITH OVER 2/3^rd MARKET SHARE; FOCUS ON COST CONTROL AND EFFICIENCY

· NEWSWIRE18 REVENUES UP 26.21% (QoQ) AND 81.98% (YoY); UNIT SALES GROW BY 11% SEQUENTIALLY

· INFOMEDIA18 UNDERGOES MAJOR BUSINESS & COST OVERHAUL

o Takes One-Time Restructuring Charge Of Rs 72.5 mn

o Restructuring To Bring Down Annual Operating Costs By Over Rs 200 mn In Next Two Quarters

o Alibaba Partnership Gaining Momentum; Local Search Business Set To Launch

· ADDITIONAL DISCLOSURES ABOUT RELATED INVESTMENTS/OPERATIONS

o Highlights About Portfolio Of Operating Companies Invested Into By Media Venture Capital Trust

o Network18 Trust Brings Rs 270 mn Of Profits Into The Books

Television Eighteen India Limited:

Consolidated Unaudited Financial Performance for the Quarter ended 31^st December 2008

Rs. mn.

Total Revenues (Part I, II, III and IV)

1304.92

1125.68

1302.60

Part I: News Operations

Rs. mn.

Particulars	Q3 2008-09	Q3 2007-08	Q2 2008-09
REVENUES: OPERATIONS	614.47	913.95	808.23
Operating Expense	469.09	453.35	488.19
Operating Profit	145.39	460.60	320.04
Operating Margin	23.66%	50.40%	39.60%
Other Income ^(refer note 1)	270.00	0.00	0.00
Net Outflow on Revenue Share with CNBC	(47.15)	(56.44)	(45.04)
Interest/Income from Investments	52.37	68.98	128.56
Interest Expense ^(refer note 2)	(324.58)	(134.43)	(221.11)
Interest (Net)	(272.21)	(65.45)	(92.54)
Depreciation	(54.24)	(51.89)	(55.49)
Total Profit Before Tax, Minority Interest and ESOP Charge Out	41.78	286.83	126.96
Non Recurring Income	7.40	0.00	0.00
Total Profit Before Tax, Minority Interest, ESOP Charge Out But After Non Recurring Income	49.18	286.83	126.96
Provision for Current Tax/FBT	(23.53)	35.65	23.47
Profits After Tax (before minority interest and ESOP charge out)	72.71	251.18	103.49
Minority Interest	0.00	0.00	0.00
Profits after tax and minority interest (before ESOP charge out)	72.71	251.18	103.49
ESOP Charge Out	27.38	40.96	27.43
Profits After Tax and ESOP Charge Out	45.33	210.21	76.06
Exchange Fluctuations ^(refer note 3)	(0.87)	2.00	33.28
Profits After Exchange Fluctuations	46.20	208.22	42.78
Provision For Deferred tax	0.00	0.00	0.00
Net Profit After Deferred Tax	46.20	208.22	42.78
Paid up Equity Share Capital	599.39	579.83	599.39
EPS (Rs.) without ESOP Charge Out	0.61	2.15	0.59
EPS (Rs.) with ESOP Charge Out	0.39	1.80	0.36

1) Pursuant to the Scheme of Arrangement between TV18, SGA News and Network18 in 2006, as approved by the Hon’ble High Court of Delhi, 5,269,533 shares of Network18, originally held by the Promoter, were transferred to a Trust. The Trust has sold some of the shares and transferred a net gain of Rs. 270 mn to the Company i.e. TV18 and the same has been included in the revenues shown above. The Trust still holds a gain of Rs. 315.9 mn and also holds 3,503,824 equity shares and some derivative positions in their books of accounts, which is held for the benefit of TV18.

2) Interest Expense includes one time upfront charges paid to various lenders amounting to Rs 90.5 mn.

3) The exchange fluctuation for the current quarter includes a net exchange fluctuation gain of Rs 10.41 mn and provision for mark to market losses on exchange derivatives of Rs.9.54 mn. Mark to market losses amounting to Rs.77.5 mn pertaining to earlier quarters have been included in the YTD figures.

Television Eighteen India Limited:

Consolidated Unaudited Financial Performance for the Quarter ended 31^st December 2008

Part II: Web18 Rs. mn.

Particulars	Q3 2008-09	Q3 2007-08	Q2 2008-09
REVENUES: OPERATIONS	174.96	176.21	152.68
Operating Expense	349.31	248.04	342.48
Operating Profit	(174.35)	(71.83)	(189.80)
Interest/Income from Investments	0.41	0.94	0.77
Interest Expense	4.92	(4.10)	(6.87)
Interest (Net)	5.33	(3.16)	(6.10)
Depreciation	(42.03)	(16.07)	(46.36)
Total Profit Before Tax and Minority Interest and ESOP Charge Out	(211.05)	(91.06)	(242.27)
Provision for Current Tax/FBT	1.35	5.66	5.80
Profits After Tax (before minority interest and ESOP charge out)	(212.40)	(96.72)	(248.07)
Minority Interest	1.68	(3.52)	(10.03)
Profit After Tax and Minority Interest	(214.08)	(93.21)	(238.04)
ESOP Charge Out	(1.16)	0.00	8.37
Profits After Tax and ESOP Charge Out	(212.92)	(93.21)	(246.41)
Exchange Fluctuations	(0.73)	2.51	0.73
Profits After Exchange Fluctuations	(212.19)	(95.72)	(247.14)
Provision For Deferred tax	0.00	0.00	0.00
Net Profit After Deferred Tax	(212.19)	(95.72)	(247.14)

Television Eighteen India Limited:

Consolidated Unaudited Financial Performance for the Quarter ended 31^st December 2008

Part III: Newswire18

Rs mn.

Particulars	Q3 2008-09	Q3 2007-08	Q2 2008-09
REVENUES: OPERATIONS	64.63	35.51	51.20
Operating Expense	75.73	52.34	78.96
Operating Profit	(11.10)	(16.82)	(27.75)
Operating Margin	(17.18%)	(47.37%)	(54.20%)
Interest/Income from Investments	0.00	0.00	0.00
Interest Expense	(9.80)	(6.30)	(6.87)
Interest (Net)	(9.80)	(6.30)	(6.87)
Depreciation	(10.43)	(4.56)	(5.30)
Total Profit Before Tax and Minority Interest	(31.33)	(27.68)	(39.93)
Provision for Current Tax/FBT	0.58	0.27	0.33
Profits After Tax (before minority interest)	(31.91)	(27.95)	(40.26)
Minority Interest	0.00	0.00	0.00
Profits After Tax and Minority Interest	(31.91)	(27.95)	(40.26)
Exchange Fluctuations	0.00	0.00	0.00
Profits After Exchange Fluctuations	(31.91)	(27.95)	(40.26)
Provision For Deferred tax	0.00	0.00	0.00
Net Profit After Deferred Tax	(31.91)	(27.95)	(40.26)

Television Eighteen India Limited:

Consolidated Unaudited Financial Performance for the Quarter ended 31^st December 2008

Part IV: Infomedia18

Rs mn.

Particulars	Q3 2008-09	Q2 2008-09
REVENUES: OPERATIONS	450.86	290.48
Operating Expense	493.71	299.62
Operating Profit	(42.85)	(9.14)
Operating Margin	(9.50%)	(3.15%)
Interest/Income from Investments	16.55	4.69
Interest Expense	(25.31)	(17.02)
Interest (Net)	(8.76)	(12.33)
Depreciation	(19.53)	(8.09)
Total Profit Before Tax and Minority Interest	(71.13)	(29.56)
Non Recurring Income	(72.50)
Total Profit Before Tax, Minority Interest	(143.63)	(29.56)
Provision for Current Tax/FBT	(9.21)	0.63
Profits after tax (before minority interest)	(134.43)	(30.19)
Minority Interest	(30.68)	(29.09)
Profits after tax and minority interest	(103.75)	(1.10)
Exchange Fluctuations	0.00	0.00
Profits after Exchange Fluctuations	(103.75)	(1.10)
Provision for Deferred tax	0.00	0.00
Net Profit after Deferred Tax	(103.75)	(1.10)

Television Eighteen India Limited:

Group’s Consolidated Unaudited Financial Performance for the Quarter ended 31^st December 2008

Particulars	Q3 2008-09	Q3 2007-08	Q2 2008-09
REVENUES: OPERATIONS	1304.92	1125.68	1302.60
Operating Expense	1378.55	753.73	1209.25
Operating Profit	(73.63)	371.95	93.34
Operating Margin	(5.64%)	33.04%	7.17%
Other Income	270.00	0.00	0.00
Net Outflow on Revenue Share with CNBC	(47.15)	(56.44)	(45.04)
Interest/Income from Investments	69.32	69.92	134.03
Interest Expense	(354.77)	(144.84)	(251.87)
Interest (Net)	(285.45)	(74.92)	(117.85)
Depreciation	(126.23)	(72.51)	(115.25)
Total Profit Before Tax, Minority Interest and ESOP Charge Out	(262.45)	168.09	(184.80)
Non Recurring Income	(74.38)	0.00	(33.86)
Total Profit Before Tax, Minority Interest, ESOP Charge Out But After Non Recurring Income	(336.83)	168.09	(218.65)
Provision for Current Tax/FBT	(30.80)	41.59	30.23
Profits After Tax (before minority interest and ESOP charge out)	(306.03)	126.50	(248.88)
Minority Interest	(28.99)	(3.52)	(39.12)
Profits After Tax and Minority Interest (before ESOP charge out)	(277.04)	130.02	(209.77)
ESOP charge out	26.22	40.96	35.80
Profits After Tax and ESOP Charge Out	(303.26)	89.05	(245.57)
Exchange Fluctuations	(1.60)	4.51	34.01
Profits After Exchange Fluctuations	(301.66)	84.55	(279.58)
Paid up Equity Share Capital	599.39	579.83	599.39
EPS (Rs.) without ESOP Charge Out	(2.30)	1.08	(2.03)
EPS (Rs.) with ESOP Charge Out	(2.52)	0.73	(2.33)

MEDIA VENTURE CAPITAL TRUST

• The total contribution by TV18 to the Group's Private Equity Investments (via Media Venture Capital Trust, or MVCT) stands at Rs 107 cr (as on December 31, 2008). Out of this, Rs 60 cr was committed in the previous financial year, and is shown on the Balance Sheet for FY 2007/08. An additional Rs 47 cr has been contributed in the current year.

• The shareholding of MVCT in these companies is a mix of structured instruments with the final shareholding dependent upon ESOP vesting, employee/entrepreneur earn-outs, performance metrics, forward valuations and industry benchmarks. The final percentages are expected to range between 10 and 49%.

• The combined YTD revenues of the companies (excluding DEN) were Rs. 63 Crores. Stargaze commenced revenue operations in July, Greycells18 went pay in August and Ubona in Oct. The YOY growth rates for companies that have been in operation since last year range between 67% and 161%.

• Financials of individual businesses are not being disclosed due to competitive considerations and early life cycle stage of the companies.

	Name	Description	Industry Segment	Date of Investment	Number of Employees
1	24X7 Learning Solutions Private Limited	- India’s premier Talent Lifecycle Management Company, committed to delivering learning solutions that enable organizations to upgrade their workforce skills efficiently - Have launched a fast growing franchise in the employability space (Skillbridge) that is helping students at colleges in Tier II and Tier III towns become employable - Key Clients include Aditya Birla Group, ONGC, Pepsi, HSBC & Essar Group	Education	Oct-07	105
2	Colosceum Media Private Limited	- Award winning new age content production house focused on TV and digital media - Led by experienced team of industry veterans - Produced 5 shows already and have a strong $10m+ revenue pipeline within 12 months of launch - Shows have secured high ratings for leading television channels - Doordarshan, Star One, MTV and Colors	Content Production	Jan-08	35
3	DEN Networks Limited	- India's largest digital cable company with over 10M homes passed - Leadership team comprises professionals with several years of experience across the media and channel distribution - Have a 50:50 Joint Venture with STAR to distribute television channels across platforms such as cable, DTH, IPTV and MMDS	Cable Networks	Oct-07	500
4	Greycells18 Media Private Limited	- Pioneer in the delivery of quality educational content over mass media - TV, Internet & Mobile - Launched the Topper Integrated Learning System for classes IX-XII available on DTH and Internet Company set-up in partnership with Educomp, India's leading education company - Diversified revenue sources include retail sales, institutional sales and licensing of content	Education	Jun-07	47

	Name	Description	Industry Segment		Date of Investment	Number of Employees
5	Stargaze Entertainment Private Limited	- Setting up a pan India multiplex brand ("Glitz") with a focus on providing a superior consumer experience - Business model leverages strong synergies with Network18's film production and distribution units delivering strong competitive position - Screen count being rapidly scaled up with over 5 projects in development currently		Film Exhibition	Feb-08		40
6	Tangerine Digital Entertainment Private Limited	- Pioneering media services company that provides a breadth of solutions including digital media services, media workflow and content production - Alliance with Infosys BPO to provide production, postproduction and allied services to media clients - Tangerine has built up strong client relationships with many of the biggest names in the broadcasting space - STAR TV, ESPN, Sony Pictures etc		Media Services	Jul-06		92
7	Ubona Technologies Private Limited	- Have developed proprietary speech recognition technology to recognize South Asian languages and accents - Working with leading consumer brands and services to voice enable their offerings - Key clients include Tata Sky, Airtel and Book My Show		Technology	Aug-08		10
8	Wespro Digital Private Limited	- Leading national consumer electronics brand with a comprehensive product portfolio - Leveraging nationwide reach and rapid growth of televised shopping network, Homeshop18 to build a national brand - Leverages multiple distribution channels across the online and offline media to reach out to its target segment		Consumer Electronics	Dec-07		30
9	Webchutney Studio Private Limited	- India's premier digital media group with leading positions in interactive advertising, online research and digital vertical networks - Ranked as India's No 1 Digital Media Agency in 2008 by Brand Equity (ET) - Strong portfolio of creative, design services and customized, proprietary solutions for industry verticals - Key clients include Bharti Group, Unilever, HP, Microsoft and P&G		Digital Media	Oct-07		120