1. Spice Communications Limited Investor Presentation 03 Mar 2008

2. PRIVATE & CONFIDENTIAL Spice is poised to become a pan-India player 1

3. PRIVATE & CONFIDENTIAL 2 Critical Success Factors Licenses and Allocation of Spectrum Company is an incumbent and strong player in the states of Punjab & Karnataka, with conspicuous market- share (~4 million subscribers) Company had applied for 20 more licenses representing over 90% market opportunity in Aug ‘06 and is having 1 st priority based on date of application in 12 circles and 2 nd / 3 rd priority in balance circles TDSAT (Telecom Tribunal) has already directed the Dept. of Telecommunications to keep priority of Spice Comm while allocating Spectrum on the same basis Spectrum available for allotment to 2 new players. Spice being one.

4. PRIVATE & CONFIDENTIAL Strong case for additional licenses

5. PRIVATE & CONFIDENTIAL 4 Entry Barriers License / Spectrum Without considering allocation for existing players (which is a dire need for most) and the need to allocate a minimum of 4.4 MHZ per new player per circle, it is apparent that there is a strong entry barrier for a new player to get allocation of spectrum. At best, the aforesaid would imply there could be one or maybe 2 players who could get a Pan-India license. Spice is the only existing player that has the opportunity to roll out on a Pan-India play – has the opportunity to address 90% market opportunity

6. PRIVATE & CONFIDENTIAL Recent developments reinforce our case Recent judgments preserve our priority in Spectrum queue Further strengthen our case for additional Licenses The Economic Times, New Delhi, Feb 28, 2008

7. Financial & Operating Highlights 6

8. PRIVATE & CONFIDENTIAL Financial Statements Operating Parameters Financial Statements Analysis

9. PRIVATE & CONFIDENTIAL Financial Statements Operating Parameters Financial Statements Analysis

10. PRIVATE & CONFIDENTIAL Spice Comm: P&L Account Rupees ( Million ) Year Ended 31 December 2007 6 Months Ended 31 December 2006 Operating Income 9,578 3,892 Other Income 768 106 Profit on Sales of Passive Infrastructure 4,393 - Total Income 14,739 3,998 Total Operating Expenditure 7,343 3,053 EBITDA 7,396 945 Finance Costs 1,659 631 Depreciation & Amortisation 1,814 696 Amortisation of share issue expenses 40 - Profit before Tax 3,884 (382) Tax 82 5 Profit after Tax 3,801 (387)

11. PRIVATE & CONFIDENTIAL Spice Comm: Operating Expenses Rupees ( Million ) Year Ended 31 December 2007 6 Months ended 31 December 2006 Amount % of Amount % of Operating Income Operating Costs 4,21344.0% 1,65342.5% Administrative Costs 1,20912.6% 62416.0% Sales & Marketing Costs 1,39114.5% 56614.5% Revenue Sharing License Fee 5295.5% 2105.4% Total Operating Expenditure 7,34376.7% 3,05378.4%

12. PRIVATE & CONFIDENTIAL Balance Sheet Snapshot – December 2007 Rupees ( Million ) Dec'07 Period ended Dec'06 Equity Share Capital 6,899 5,519 Reserves & Surplus 4,943 - Loan Funds 15,725 12,079 Total Liabilities 27,567 17,598 Gross Block 27,835 20,440 Depreciation 10,418 10,263 Net Block 17,417 10,177 Investments 972 Net Current Assets (excluding cash) 4,233 (1,176) Cash & Bank Balances 1,087 1,273 Net Current Assets 5,320 97 Misc. Expenditure 596 281 P&L Account 3,263 7,043 Total Assets 27,567 17,598

13. PRIVATE & CONFIDENTIAL Financial Statements Operating Parameters Financial Statements Analysis

14. PRIVATE & CONFIDENTIAL Punjab: Expanding network and subscriber base Network Minutes (Mn per month) Network expansion strategy to maintain Spice position as top two operators 453 new towns covered since Dec 06 70% increase in Cell Sites in one year 839 365 172 Total Market Share 169 116 166 139 94 71

15. PRIVATE & CONFIDENTIAL 223 new towns covered since Dec 06 95% increase in Cell Sites since Dec 06 Expansion strategy leading market share gain Network Minutes ( Mn per month ) Network investments & increasing coverage has led to growth in market share 794 304 99 170 57 181 139 15 52 Karnataka: Expanding network and subscriber base

16. PRIVATE & CONFIDENTIAL Investments Beginning to Yield Results Increasing Subscriber Base Leading to Strong Growth in Revenues * Revenues are given as the average monthly revenues for the quarter ended Punjab – ARPUKarnataka – ARPU Karnataka - Revenue Run Rate* Punjab - Revenue Run Rate*

17. PRIVATE & CONFIDENTIAL Financial Statements Operating Parameters Financial Statements Analysis

18. PRIVATE & CONFIDENTIAL Analysis- Income Operating Income ComponentGrew by (Rs. Mio) Call Charges110 Activation / Administrative Charges15 VAS Revenue19 Operating Income Operating Income during the year 2007 grew by 23% in comparison to annualized operating income of previous six months Average monthly operating income grew by Rs. 149 Mio and reached to Rs. 798 Mio in comparison to Rs. 649 Mio in previous six months. Major contributors are - Other income grew by Rs. 662 Mio during the year 2007resulting into 263% growth over annualized other income of previous six months. Major contributors are - Other Income VAS revenue contribution grew to 8.3% in the year 2007 in comparison to 7.4% in previous six months Rs. Mio Forex Gain277 Interest Income99 Operating Lease write back250 Profit on sale of towers is Rs. 4,393 Mio in comparison to Rs. NIL in the previous six months

19. PRIVATE & CONFIDENTIAL Analysis- Expenditure Increase as a % of Operating Income Repair Network0.5% Power & Fuel2.8% Rent0.9% Operating Cost in the year 2007as a percentage of operating revenue grew to 44% against 42.5% during previous six months Number of cell sites increased by 1,633 during the year 2007 and reached to 3,663 in Dec 2007 in comparison to 2030 in Dec 2006. Operating Cost The above increase in cost has been partially offset by savings in the following cost – This increase in cell sites resulted into increase in following major costs - Savings as a % of Operating Income Roaming Cost1.4% VAS outsourcing cost1.2%

20. PRIVATE & CONFIDENTIAL Analysis- Expenditure Administrative Cost Admin cost as a percentage of operating income during the year 2007 decreased to 12.6% against 16% in the previous six month Economy of scale has started getting reflected Major expense head for savings are following - ExpensesSavings as a % of Operating Income Salary0.4% Legal & Professional1.5% Traveling Cost0.3% Rent0.2% Provision for doubtful debt0.3%

21. PRIVATE & CONFIDENTIAL Analysis– Expenditure Sales & Marketing Sales & Marketing cost as a percentage of operating income in the year 2007 remains at 14.5% as in the previous six months Advertising & Marketing cost as a percentage of operating income in the year 2007 gave savings of 0.7% over previous six months The above savings has been offset by increase in dealer commission by 0.7% due to higher gross additions of 2,732 K in the year 2007 in comparison to 992 K in the previous six months. Revenue sharing license fees during the year 2007 is 5.5% of operating income in comparison to 5.4% in the previous six months

22. PRIVATE & CONFIDENTIAL Analysis– Expenditure Finance Cost Major items for increase are - Finance cost during the year 2007 increased to 17.3% of operating income in comparison to 16.2% in the previous six month Above increase has been partially offset by savings of 4.1% in interest on INR Debt due to repayment of debt by Rs. 3,420 Mio during the year ParticularsPercentage Interest on USD Debt0.5% Prepayment Charges on INR Debt1.2% Provision for Interest on WPC0.7% Interest on Finance Lease2.5% Others0.5%

23. PRIVATE & CONFIDENTIAL Analysis– Balance Sheet Company raised Rs. 6,322 Mio through IPO during the year Balance of USD 10 Mio (Rs. 441 Mio) out of USD facility drawn down during the year Rs. 3,420 Mio has been paid towards INR Debt repayment Finance Lease obligation of Rs. 4,596 Mio has been created on account of capitalization of financial lease of towers Rs. 323 Mio has been paid towards Vendor debt repayment Deferred capital liability of Rs. 2,582 had been created on account of network assets procured on trial basis Fixed Assets worth Rs. 9,054 Mio has been added during the year. Major assets added are - Rs. Mio Network Equipment518 Assets taken on trial3,026 Network Equipment on finance lease4,375 Software430 Handsets394 Shareholding Fund Loan Funds

24. PRIVATE & CONFIDENTIAL Analysis– Balance Sheet Rs. Mio Increase in deposit to BOL operators145 Deposit with Spice Corp100 ICD250 WPC payment under protest455 Rs. Mio Advance from customers412 Sundry Creditors223 Loans and Advances increased by Rs 983 Mio mainly on account of - Other current assets of Rs. 5,122 Mio is on account of amount recoverable from tower sale Current liabilities increased by 668 Mio mainly on account of - Provisions have been increased by Rs. 154 Mio mainly on account of - Miscellaneous expenditure increased by Rs. 315 Mio mainly on account of shares issue expenses Rs. Mio Provision for WPC Interest67 Provision for MAT66

25. PRIVATE & CONFIDENTIAL THANK YOU 24