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									Television Eighteen
Investor Update Q3 FY 2005-06

      TV18 Network set to become India’s largest News

TV18 Group posts 55% Revenue growth; Net Profit up 47%
                   Q3 Revenues at Rs. 381.14 mn, Up 55% YOY
                  Operating Profit at Rs. 208.37 mn, Up 54% YOY
                        Operating Margin maintained at 55%
                       Net Profit at Rs. 120 mn, Up 47% YOY
                                    EPS at Rs 5.69
Highlights :
   CNBC-TV18 posts record revenues; continues to lead the English News Space.
   Awaaz becomes India’s largest Business Channel - shows strong revenue
       growth – approx. revenue INR 55 Million vs. INR 40 Million in Q2. Channel
       fast approaching operating break-even.
   TV18 Group’s foray into General News - CNN-IBN launched with tremendous
       response from viewers. Achieves significant market-share within just two weeks
       of launch (details in attached note)
   Group’s Internet businesses grow by almost 6 times YOY. Announces entry
       into subscription model.
      TV18 Board of Directors passed a detailed scheme for restructuring of
       ownership pattern to meet Government of India guidelines. The consolidation
       aims at unlocking the value in AWAAZ and CNN-IBN, which were being held
       as promoter entities.
                Television Eighteen India Limited – Consolidated Financial Performance
                   (Unaudited provisional) for the quarter ended 31st December 2005
                                                                                                 (Rs. in mn)

Particulars                                        Oct-Dec 2005-06 Q3 Jul-Sept 2005-06 Q2 Oct-Dec 2004-05 Q3
Revenue from operations
 (excluding other income)
-News Operations                                         356.97             295.31             241.36

-Internet and software operations                        24.17               12.87              4.69

Total Operating Revenue                                 381.14              308.18             246.05
Operating expenditure                                   172.77              137.46             110.78
Operating profit                                        208.37              170.72             135.27
Operating margin                                        54.67%              55.40%             55.00%

Net Outflow on Revenue Share with CNBC                   (12.84)            (8.68)             (11.40)

Interest/Income from investments                          19.76              10.68               8.68
Interest Expense                                         (40.48)            (22.25)            (15.87)
Interest (Net)                                           (20.72)            (11.56)             (7.19)

Depreciation and non cash expenses                       (48.28)            (43.78)            (29.27)

Pre-tax profits (excluding exchange fluctations
& deferred tax)                                          126.53             106.69              87.41
Provision for Income Tax                                  6.75               6.75               4.90

Profits after tax (excluding exchange
fluctuations & deferred tax)                             119.78              99.94              82.51

Profit/Loss on Exchange fluctation                       (0.10)              0.18               (0.95)

Profits after tax(including exchange fluctations
& deferred tax)                                          119.68             100.10              81.56
Paid up equity share capital                             210.43             210.30             168.27

EPS (Rs.) (Excluding exchange fluctations &
deferred tax)                                             5.69               4.75               4.90

"Pursuant to a Scheme of Arrangement ("Scheme") considered by the Board
of Directors in its meeting held on Dec 22, 2005, and subject to
requisite approvals as may be required, the Media Investment Undertaking
of the Company would be demerged, and the Indian News Business
Undertaking including business activities of the Awaaz channel would be
merged with the Company, in accordance with the provisions of Sections
391 to 394 of the Companies Act, 1956, with effect from their respective
Appointed Dates viz. 1st October, 2005 and 1st November, 2005
respectively. No impact of the proposed Scheme has been taken in these
                                 FINANCIALS OF LAST 12 QUARTERS










      Q3 02-03 Q4 02-03 Q1 03-04 Q2 03-04 Q3 03-04 Q4 03-04 Q1 04-05 Q2 04-05 Q3 04-05 Q4 04-05 Q1 05-06 Q2 05-06 Q3 05-06
                                  Total Operating Revenue               Operating expenditure
                                  Operating margin                      Profits after tax
TV18: The Growth Story Continues
An Update
TV18 Group, India’s No. 1 business and consumer network has been able to retain its
leadership position in the English and Business News Space.

CNBC-TV18 continues to be the leader in English as well as business news in India

                     Market share of English news viewership
                            October to December 2005
   40%             38%


   20%                                                   18%

   10%                                                                        8%

              CNBC TV18           NDTV 24x7          NDTV Profit         Headlines   Others

Source: TAM, TG: CS Male SEC AB 25yrs+, All India, Weekdays 7am to midnight
Awaaz – Continuing the blazing growth story.
Awaaz, India’s first consumer channel continues to grow by nearly 200% since its
launch, making it one of fastest growing channels in television history.

Growth in viewership since launch in January 2005
                                 Share of viewership
                                     2005 trends



                      Jan-Mar 05                          Oct-Dec05

Source: TAM, TG: CS Men and Women SEC AB 15yrs+, Hindi Speaking Markets, All days 7am to midnight

Awaaz has 41% more viewers than NDTV Profit
                                  Share of viewership
                                October to December 2005

   0.20                                        0.17

   0.10                                                                   0.08

                    Awaaz                  NDTV Profit                Zee Business

Source: TAM, TG: CS Men and Women SEC AB 15yrs+, Hindi Speaking Markets, All days 7am to midnight
CNBC TV18 & Awaaz Update
CNBC-TV18 continues to be the medium of choice for India’s decision makers, affluent
audiences across the country. Awaaz continued to play its role as a channel dedicated
to the Indian consumer, with an array of innovative, interactive programming. This
interactive nature reached an all new high, as more than 4 lac SMSes came in,
especially in response to the numerous contests and web initiatives like Sensex Lottery
and Moneybhai.

Oriental & Occidental – This CNBC-TV18 special series focused on interviews with
foreign investors who are discovering India. Each half-hour episode featured one
renowned investor who gave us critical insights on what transformed Dalal Street
from a financial backwater to a leading emerging market destination. Some of the
guests featured in the series are Dr. Mark Mobius (President, Templeton Emerging
Markets), Stephen Roach (Chief Economist, Morgan Stanley), Mr. Ayaz Ebrahim
(CEO, Asia Pacific, HSBC Halbis Partners (HK) Ltd), and Dr. Marc Faber (Marc Faber

Emerging India Series – For the second year in a row, after the successful
initiation of the series last year, the Emerging India Series, India's first platform for
recognizing and promoting India's small & medium enterprises, is back. A number
of high profile and highly relevant on-ground forums have already been hosted in
cities like Hyderabad, Delhi and Pune, and four special episodes have also been
telecast on the channel. All this will lead on to the prestigious awards ceremony,
where like last year, some of India’s most high profile people will give away the
awards to the nation’s most deserving SMEs.

All New Markets Line Up – A revamped market line up was introduced from October
2005 making CNBC-TV18’s market coverage the most cutting edge. The new line up
had increased emphasis on the latest tools required for today’s complex new market;
from increased F&O & commodities coverage, to research on small caps to dedicated
programming on IPO evaluation and much more.

India Business Leader Award – India’s most definitive leadership awards, IBLA -
saw some of the best business leaders emerge as Indian representatives for the Asia
Business Leader Awards, which was held in Kuala Lumpur in November 2005. Debu
Bhattacharya, MD of Hindalco was crowned the India Business Leader of the year 2005,
and he was also awarded the Corporate Citizen of The year Awards at ABLA ’05.

Mumbai: Post 26/7– A CNBC-TV18 special discussion, wherein an elite panel
discussed the varied infrastructure related problems in the city of Mumbai, post 26/7,
aimed at generating solution to these problems. The objective of this event was to keep
alive the memory of the tragedy, and ensure that the lessons learned from the tragedy
were transmitted to the right people.
Financial Advisor Awards - Recognising the critical role that financial advisors
play in the wealth creation process in the country, CNBC-TV18 launched the
Financial Advisor Awards, powered by ICRA. This is India’s first and most
authoritative evaluation and awards, which recognises the country’s best financial
advisors. This award, which will be held in March 2006, is well on its way to
becoming a benchmark in the financial world and celebrating the contribution of the
experts in creating investor wealth and imparting successful financial advice.

Your Stocks Aapke Sheher Mein – An on-going Awaaz special initiative, this
successful stocks advisory show has, and continues to bring investment experts to the
metros, as well as several of the smaller cities, thus providing invaluable first hand
advice to millions of Indian investors. Every weekend the expert Awaaz stocks team
visit a new city - from Mumbai to Coimbatore to Baroda to Aurangabad and more 30
other cities around the country.

Kaun Rahega Crorepati – Undoubtedly one of the bigger shows in the industry this
season, this unique concept focused on providing unprecedented financial advice and
counseling to the winners of one of India’s biggest game shows. Featuring these lucky
winners, as well as some of India’s best investment advisors, this show took personal
finance counseling to a whole new level.

Moneybhai Investor – Another very unique Awaaz initiative, this interactive business
game show provided investors from around the country a chance to sharpen their
investing skills and win prizes, without any element of risk. In fact, this virtual stock
market game has become so popular that in the last quarter alone, more than 1 lac
investors registered and played this game…and several of them also won attractive

Pehredaar: Introduced this quarter, this well designed consumer grievance show,
hosted by veteran Awaaz anchor Vivek Law, has quickly gained in popularity. Providing
a real, viable, and easily accessible opportunity to disgruntled consumers to get their
complaints redressed, it is little wonder that this has become a must see for people
across the country, and across all socio-economic strata.

Awaaz wrapped up the year with a series of year-end specials aimed specifically at
helping Indian consumers across the country start the New Year on the right note. From
special shopping tips on Smart Shopping, one of Awaaz’s most popular shows, to the
biggest Bollywood Hits and Flops in Glamour Bazaar, to advice on buying a home in
Prime Property to reviewing the best cars in the year past, you had it all…only on
India’s first dedicated consumer channel – Awaaz.
CNN-IBN Update
CNN-IBN launched on 17th December, 2005 and has within just two weeks of launch
been made available in more than 40 Million Homes.

The channel has already begun demonstrating its Editorial leadership with Breaking
News coverage of several events in the past weeks among which was the Bangalore
Shoot-Out and channel exclusives like the interviews with Ms. Sonia Gandhi, Gen.
Pervez Musharraf and cricketing specials with Rahul Dravid, Imran Khan, Kapil Dev, Anil
Kumble and others.

The above initiatives have met with excellent viewer response, which has been visible in
the ratings as well – CNN-IBN is merely a few points away from becoming India’s No 1
English News Channel (see chart below)

In only the second week of its launch CNN-IBN has become India’s no.2 English news channel.

                               Share of viewership
                                 English news


          CNN-IBN week CNN-IBN week             NDTV 24x7           Others
                1            2

Source: TAM, TG: CS 15yrs+, All India, All days 700-2359
Investor communication
TV18’s ongoing investor communication endeavors to adopt best international practices and
the company’s quarterly investor updates are designed to regularly provide detailed
information to investors. Each update covers information pertaining to the reporting period
under review. If you would like to get a sequential and continued perspective on the
company this report should be read along with the updates sent out earlier. The previous
updates can be accessed on request from the contact person mentioned below, or from the
companies website This update covers the company’s financial
performance for Q3 FY 2005-06.

For further information on Business and Operations contact:
Haresh Chawla, CEO, Television Eighteen
Tel # 022-2490 0413; Fax # 022-56618984; e-mail:

For further information on financials contact:
R D S Bawa, CFO, Television Eighteen
Tel # 0120-5341717; Fax # 0120-5324110; e-mail:

Further information on the company is available on its website

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