Operationalisation of DBS

CORPORATE DISCLOSURE – OPERATIONALISATION OF DIALOG BUSINESS SERVICES (PVT) LTD

Further to our disclosure dated 28 January 2011 with respect to the formation of Dialog Business Services (Pvt) Ltd (DBS), we write to update the CSE on the following events and activities salient to the operationalisation of the said company.

BOI Agreement

We are pleased to inform the CSE that DBS entered into a Principal Agreement with the Board of Investment of Sri Lanka (BOI) on the 7th of March 2011, to establish and operate an IT-Enabled Services venture serving domestic and global markets.

Operationalisation

The operations of DBS will be seeded through the transfer of the contact centre operations of Dialog Axiata PLC, to DBS its fully owned subsidiary. It is envisaged that DBS will be fully operational by the 1st of April 2011.

Going Forward

The contact centre operation of Dialog Axiata (DBS going forward) has the distinction of being the first Sri Lankan contact centre to receive International BPO industry standard COPC (Customer Operations Performance Center 2000®) certification. Dialog Axiata is confident that DBS will grow to be an industry leading and internationally competitive IT Enabled Services (ITES) provider operating under the aegis of the BOI. In furthering this vision, Dialog Axiata will actively pursue potential catalysts of growth and competitiveness in the ITES sphere, including but not limited to the identification of a world class BPO/ITES player as a Joint Venture partner in DBS.

Dialog Axiata undertakes to keep the CSE duly apprised going forward, of material activities and events pertaining to the operations of Dialog Business Services (Pvt) Ltd.