TANLA ACQUIRES 85% IN OPENBIT Oy FOR $US 15.81 MILLION AT A VALUATION OF $US 18.60 MILLION (EURO 12 MILLION)

Tanla today announced its acquisition of Tampere, Finland based Openbit OY, a leading provider of global on device payments for mobile applications. The agreed valuation of the total shareholding of Open bit is $US 18.60 Million (EURO 12 Million); of which Tanla is acquiring 85% from the outgoing financial investors. The transaction is an all cash deal. The remaining 15% held by the management is to be purchased by Tanla in two tranches of 5% and 10% after the first and second year respectively. For the Financial year ended 31st December 2007, Open bit recorded Revenues of $US 15.88 Million (EURO 10.25 Million) with an EBITDA of $US 0.79 Million (EURO 0.51 Million). Openbit had cash equivalents of SUS 3.04 Million (EURO 1.96 Million) as of 31st December 2007.

Commenting on the deal Mr. Uday Reddy, CMD Tanla Solutions Ltd. said "Smart phones are claiming an increasing share of the handset market driving the consumption of richer content formats and increased use of the mobile phone for processing payments. The acquisition of Openbit extends Tanla's payments portfolio beyond operator billing products to address the emerging market for rich media & business applications on handsets."

Mr. Uday Reddy further said, "Openbit gives us an opportunity to serve more customers in the international markets, and fortifies Tanla as a leading mobile solutions organization, in line with its vision to become a global end to end applications and solutions provider. We hope to integrate our operations at the earliest to benefit from the tremendous synergies available to us."

Mr. Arto Lehtonen, CEO Openbit added "Our relationship with Tanla will significantly expand the current business by providing competent resources for software development and quality assurance to enable Openbit access more markets and customer accounts, and to implement new mobile platform features as needed by Openbit's key customers."

Openbit OY is headquartered in Tampere, Finland with a Sales and Marketing office in Helsinki, Finland. Openbit Ltd is recognized as a leading provider of solutions that seamlessly integrate on-device payment and digital rights management (DRM) for mobile applications. The Company has a proven business model with a unique value proposition around on-device payment, with an installed base of over 20 million Symbian OS-enabled Nokia handsets worldwide. The Company provides software vendors and content distributors with efficient and secure means to distribute and process payment of mobile content for end-users globally. Openbit has established global billing agreements that allow convenient payment of mobile content with nearly 90 operator networks in over 30 countries and with all major credit cards worldwide.

Openbit's clients include Nokia and some of the largest Independent Software Vendors like Symantec, F-Secure & Quickoffice and Gaming companies like 3D Arts & Gamelion.

Openbit is led by its CEO Mr. Arto Lehtonen. He has had a distinguished career of over 20 years in the telecom industry and has held prestigious positions in Nokia for over 13 years including heading the Product Management team and was responsible for Nokia's smart phone roadmap and wireless data products. Other key personnel include Mr. Harri Myllyla VP, Business Development, Mr. Miika Kettunen Director responsible for Product Development Mr. Jarno Kanninen, Business Controller and Mr. Vesa-Pekka Kirsi who is designated as VP, Sales and was earlier with Nokia responsible for game publisher relationships. The management team brings a wealth of experience across functions and a demonstrated ability to bring cutting edge payments products for mobile applications. All the employees are shareholders in the company and would continue in their present roles.

Tanla has identified Mobile Payments as one it's core verticals going forward. Juniper Research estimates the market opportunity to be in excess of $11 Billion by 2011 a third of which would be on account of retail and ticketing segments. The drivers for this growth can be attributed to convenience and increasing use of feature rich phones. Industry estimates for feature and Smartphone shipments by 2011 exceed 870 Million registering far higher CAGR as compared with Voice phones. More than 1 Billion subscribers would be using their mobiles for the purchase of both physical and digital goods globally over the next 3 years.

With this acquisition Tanla would get a strong footing in this burgeoning market with access to pedigree proprietary technology and best in class applications. This is evidenced by Openbit's original equipment vendor status with leading mobile phone manufacturers globally. Tanla would also be integrating its global aggregator platforms with the acquired company to enable end users to be billed by Premium SMS and also help leverage more than 90 operator relationships to facilitate its objective of global connectivity. Both companies would integrate their respective R&D and Product Development capabilities to introduce new products and services globally pooling on the resources available with Tanla's development centre for professional services including offshore development.

The financial advisors representing Tanla were KPMG and Grant Thornton, while the legal advisors were AZB & Partners and White & Case.

About Tanla Solutions Ltd:

Tanla is a leading provider of Telecom infrastructure headquartered in Hyderabad, India with offices in London, New York, Dubai, Singapore, Dublin and Colombo. It is listed on the both the National and Mumbai Stock Exchanges with a market capitalization exceeding $700 Million (Reuters TNSL.BO and Bloomberg TANS: IN). For the financial year ending 31st March 2008, Tanla recorded Revenues in excess of $119 Million and Net Profits of more than $40 Million. Tanla was awarded the Deloitte Fast 50 award and named as the Sixth fastest growing company in India as part of the Deloitte survey. It's subsidiary business Tanla Mobile is one of the youngest and fasted growing Network Aggregators in the UK. Tanla Mobile is a leading innovator of next-generation mobile application solutions, m-commerce and interactive services. Tanla Mobile specialises in developing mobile applications and platforms for the Mobile Telecoms, Media and Digital Communications sector. Tanla Mobile works in partnership with global mobile operators across Asia, Europe and North America to deliver and bill mobile content over SMS, WAP, MMS, Video, etc. Its product suite includes Mobile Payments Solutions, Campaign Management, Content Management, 3G Video Management and Interactive TV Management applications, all of which are supported by powerful online reporting and CRM tools.

Visit www.tanlasolutions.com for further details.