PENETRATION PRICING PRICE SET TO PENETRATE THE MARKET LOW PRICE TO SECURE HIGH VOLUMES TYPICAL IN MASS MARKET

KET PRODUCTS CHOCOLATE BARS, FOOD STUFFS, HOUSEHOLD GOODS, ETC. SUITABLE FOR PRODUCTS WITH LONG ANTICIPATED LIFE CYCLES MAY BE USEFUL IF LAUNCHING INTO A NEW MARKET Introductory offers by Reliance: FREE DIGITAL MOBILE PHONE UNLIMITED FREE INCOMING CALLS BILLING AT 15 SECOND PULSE RATE ONE TIME DEPOSIT OF RS. 3000 TELEPHONY CHARGES WERE RS. 600 PER MONTH OUTGOING CALLS AT 10 PAISE FOR 15 SECONDS LONG DISTANCE CALLS AT 40 PAISE PER MINUTE TO ANY RELIANCE PHONE ONLY FREE TEXT MESSAGING MONSOON HUNGAMA SCHEME CAME OUT IN 1ST JULY, 2003 CUSTOMERS WILL GET A MOBILE AT RS. 501 MONTHLY RENTAL OF RS. 200 BIGGEST PROMOTIONAL SUCCESS IN THE HISTORY OF MOBILE PHONES 1 MILLION HANDSETS SOLD IN 10 DAYS

 PRICES OF GSM HANDSET MOBILES FELL

Reliance Infocomm makes mobile telephony more affordable

Unveils 'Monsoon Hungama ' - A multimedia mobile phone AND connection FOR just Rs 501 LIMITED Period Offer opens July 2

In an attempt to give every Indian a chance of owning a mobile phone, Reliance Infocomm today announced Monsoon Hungama, an unprecedented scheme from Reliance IndiaMobile which allows you to get a mobile phone at an upfront payment of just Rs 501. Monsoon Hungama is an extremely affordable payment option which allows customers to choose from any of the existing tariff plans including the best value for money Dhirubhai Ambani Pioneer Offer (DAPO), Budget 149 and Budget 249. This limited period offer gives consumers a unique opportunity to own a mobile phone with both a low entry cost and a low monthly spend For example, a customer opting for Monsoon Hungama as an upfront payment option and Budget 149 as tariff plan will be able to restrict his/her fixed recurring monthly outgo to Rs 449 per month, inclusive of the Rs 200 paid as club membership & privilege charges. The customer of course will also get Rs 100 worth of free Talktime (including SMS) per month. Shareholders of Reliance group companies can also avail of this new offer in conjunction with the recently announced Khazana Club offer, wherein they are eligible for a discount of Rs 850 on upfront payment for becoming a Reliance IndiaMobile subscriber. Under Monsoon Hungama Reliance shareholders will not only take away a Reliance IndiaMobile connection absolutely free, but also get a credit of Rs 349 in their first bill.! The Reliance IndiaMobile service is commercially available in around 200 cities presently. It will soon be available in 693 towns and cities across the country. The service is at present supported by over 250 Web Worlds and retail stores where a customer can walk in and buy a fully provisioned phone within 15 minutes. Reliance IndiaMobile also has a dedicated customer contact center for responding to user queries on phone. Reliance Infocomm Ltd. is a part of the Reliance group founded by Shri Dhirubhai H. Ambani (1932-2002) and is India's largest business house with total revenues of Rs 80,000 crores (US$ 16.8 billion), cash profit of over Rs 9,800 crores (US$ 2.1 billion), net profit of over Rs 4,700 crores (US$ 990 million) and exports of Rs 11,900 crores (US$ 2.5 billion).

PRE PAID OFFERING INTRODUCED IN FEB 2004 GAVE CUSTOMERS FREE RECHARGE VOUCHERS NEARLY THE COST OF THE HANDSET CUSTOMER HAD TO PAY RS. 3500 FOR THE HANDSET FREE RECHARGE VOUCHERS WORTH RS. 3240 AUTOMATIC ROAMING IN INDIA WITHOUT ANY EXTRA CHARGE

RIC/MR/2004/06 February 09, 2004 Reliance Infocomm storms prepaid market, announces path breaking schemes

FOR Rs 3500 get a Motorola C131 mobile phone AND Rs 3240 worth OF recharge vouchers instantly AND stay connected FOR 1 YEAR Prepaid offer also available across wide spectrum OF Reliance IndiaMobile handsets Includes AUTOMATIC nationwide roaming AT NO extra charge

After achieving dominant market share in the post paid segment and establishing itself as No. 1 player in the mobility sector, Reliance Infocomm today marked its entry into the prepaid segment by announcing path breaking schemes that give customers free recharge vouchers worth nearly the cost of a Reliance IndiaMobile (RIM) Prepaid handset that they buy. Not only that, they can remain connected for a full one year without having to buy new recharge vouchers. Under the revolutionary, never-before RIM Prepaid launch scheme a customer will just pay Rs 3500 for a stylish Motorola C131 handset and, in return, get a free RIM Prepaid connection and recharge vouchers worth Rs 3,240 valid for six months with an additional six month grace period. During this grace period the subscriber will be able to receive incoming calls and SMS without recharging the account. The RIM Prepaid promotional scheme is also available with all other Reliance IndiaMobile handsets. For example a customer can buy a Java and multimedia enabled LG RD2030 handset for Rs 6,500 and get RIM Prepaid recharge vouchers worth Rs 6,480 absolutely free. "RIM Prepaid raises the bar for innovation, quality of service and value added services in prepaid segment of mobile telephony market. RIM Prepaid customers will have full seamless mobility across the country and roaming service comes to them without any extra charge. They will also be able to recharge their account with any denomination from virtually anywhere in India. RIM Prepaid is also the only prepaid service in the

country that provides data applications through R World and Internet connectivity through R Connect. We are the market leader in post paid segment and we are confident to repeat the same feat in prepaid segment by offering superior products and services," said Mr. SP Shukla, President - Wireless Products and Services, Reliance Infocomm Ltd The RIM Prepaid handsets are distributed through over 15,000 retail outlets across India. Customers will be able to buy recharge vouchers from over 70,000 retail outlets across the country. The tariff for RIM Prepaid is one of the lowest in the industry and simple to comprehend with fewer slabs. All local calls, intra-circle calls and inter-circle calls of less than 50 kms distance to another mobile phone have a flat rate of Rs 2.49/minute. All inter-circle calls of above 50 kms to another mobile phone have a flat Rs 2.99/minute rate. All local calls, intra-circle calls and inter-circle calls of less than 200 kms to a fixed phone have a flat Rs 2.99/minute rate and all inter circle calls of above 200 kms have flat rate of Rs 3.99/minute. Other unique features of RIM Prepaid include automatic roaming in pan India RIM network at no extra cost, nationwide recharge facility with any denomination, STD and ISD facility, call forward and voice message service at local mobile call rates from anywhere in RIM network. RIM Prepaid customers with Java enabled handsets will be able to use their phones as modems for R Connect Internet connectivity and access R World data applications. RIM Prepaid customers will also have access to 1234 SMS based services and a host of call management services like three-way conference call and caller line identification. Reliance Infocomm Ltd., a Reliance group company, is India's largest mobile service provider with over 6 million subscribers. Reliance Infocomm has established a pan-India, high-capacity, integrated (wireless and wireline) and convergent (voice, data and video) digital network, to offer services spanning the entire Infocomm value chain infrastructure, services for enterprises and individuals, applications and consulting. The Reliance Group, founded by Shri Dhirubhai H. Ambani (1932-2002), is India's largest business house with total revenues in the financial year ended March 2003 of Rs 800 billion (US$ 16.8 billion), cash profit of over Rs 98 billion (US$ 2.1 billion), net profit of over Rs 47 billion (US$ 990 million), market capitalisation Rs 974 billion (US$21.7 billion) and exports of Rs 119 billion (US$ 2.5 billion). PRICING STRATEGY OF Rim My vision is to provide the latest telecommunication facilities to every Indian at the price of a post card Dhirubhai Ambani.

A monthly telecom spend of Rs 2503 ($5.6) would usher in a telecom revolution in India. At that rate, the telecom market will be around 600 million lines, said B D Khurana, former group president and CEO, Reliance Infocomm. Reliance Infocomm challenged conventional cost structures in the telecommunications industry. Historically, telecommunication services have been the privilege of a small section of society. Reliance Infocomm broke this mould with a tariff that is the most ambitious ever listed by a telecom company in India. It aimed for prices as low as the cheapest alternative the postcard. While other operators aimed for the value market, Reliance Infocomm realized that there is a market in driving volumes and aimed at creating a completely new market. According to estimates, there are around 320 million households with an annual income of Rs 1.5 lakh ($3,333). Out of that, half are in rural area with similar purchasing power. And this segment is expected to grow to 478 million by 2007 and to 602 million by 2010 commented BD Khurana, former group President and CEO, Reliance Infocomm, hinting about the market that Reliance Infocomm aimed to capture.