CORRECTING and REPLACING Rediff.com Reports Results for the First Quarter Ended June 30, 2013

  CORRECTING and REPLACING Rediff.com Reports Results for the First Quarter
  Ended June 30, 2013

CORRECTION...by Rediff.com

Business Wire

MUMBAI, India -- July 30, 2013

Quote from Ajit Balakrishnan in fifth graph has been revised.

The corrected release reads:

     REDIFF.COM REPORTS RESULTS FOR THE FIRST QUARTER ENDED JUNE 30, 2013

Rediff.com, one of the premier online providers of news, information,
communication, entertainment and shopping services to Indians worldwide, today
announced results for its first quarter ended June 30, 2013.

The Company reported overall revenues for the 2013 first fiscal quarter of
$4.11 million, a 12% increase as compared to $3.67 million reported in the
2012 first fiscal quarter.

For the three months ended June 30, 2013, the Company reported revenues from
India Online of $3.37 million, an increase of approximately 21% over the
corresponding quarter last fiscal year. Total India revenue, which includes
online advertising revenues of $2.19 million and fee-based revenues of $1.18
million, increased approximately 14% and 27%, respectively as compared to the
three months ended June 30, 2012. Within India fee-based revenue, fees from
Online Marketplace grew 78%. Offsetting this growth were lower sales from the
U.S. Publishing business, as the Company reported sales of $0.74 million as
compared to $0.88 million for the comparable 2013 and 2012 fiscal first
quarters.

“Amidst continued challenging economic conditions and the pressures of a
weakening Rupee vs. the U.S. dollar, we have maintained a strong market
presence throughout India and have seen many of our newer initiatives grow;
particularly our online and local TV advertising business, as well as in
Online Marketplace and Enterprises Email,” said Ajit Balakrishnan, Chairman
and Chief Executive Officer of Rediff.com.

Mr. Balakrishnan added, “Our gross margins this quarter were 44%, compared to
32% for the same quarter last fiscal year. Additionally, in our Online
Marketplace business, we successfully maintained a 12% positive product margin
for the quarter and we continue to add vendors and SKU’s to our offering. I
believe our concentrated efforts on conserving cash will take us a step closer
towards profitability, especially as our margins increase and our top-line
grows.”

The Company reported an Operating EBITDA loss of $1.47 million for the quarter
ended June 30, 2013 as compared to an Operating EBITDA loss of $2.27 million
in the comparable year-ago period.

Further details of Rediff.com’s results for the first fiscal quarter ended
June 30, 2013 are appended in tabular form to this press release. A script of
the earnings results conference call held on July 30, 2013 will also be made
available on Rediff’s Investor Information website at investor.rediff.com.

About Rediff.com

Rediff.com (NASDAQ: REDF) is one of the premier worldwide online providers of
news, information, communication, entertainment and shopping services to
Indians worldwide. Founded in 1996, Rediff.com is headquartered in Mumbai,
India with offices in New Delhi, India and New York, USA.

Safe Harbor

Except for historical information and discussions contained herein, statements
included in this release may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and reflect
our current expectations. Forward-looking statements are identified by certain
words or phrases such as "may", "will", "aim", "will likely result",
"believe", "expect", "will continue", "anticipate", "estimate", "intend",
"plan", "contemplate", "seek to", "future", "objective", "goal", "project",
"should", "will pursue" and similar expressions or variations or negatives of
such expressions. These statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially from
those that may be projected by these forward-looking statements. These risks
and uncertainties include but are not limited to the slowdown in economies
worldwide and in the sectors in which our clients are based, the slowdown in
Internet and IT sectors worldwide, competition, the success of our past and
future acquisitions, attracting, recruiting and retaining highly skilled
employees, technology, acceptance of new products and services, the
development of broadband Internet and 3G networks in India, legal and
regulatory policies, managing risks associated with customer products and the
widespread acceptance of the Internet as well as other risks detailed in the
annual report on Form 20-F and other reports filed by Rediff.com India Limited
with the U.S. Securities and Exchange Commission. Rediff.com India Limited and
its subsidiaries may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the Company's
filings with the U.S. Securities and Exchange Commission and our reports to
shareholders. Rediff.com India Limited does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf
of the Company.

                                TABLES FOLLOW


STATEMENT OF OPERATIONS
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions, unless otherwise indicated below)
                                                 
                                                   Quarter ended June 30
                                                   2013        2012
Revenues                                                         
India Online                                        3.37          2.79
US Publishing                                       0.74          0.88
Total Revenues                                      4.11          3.67
Cost of Revenues *                                  (2.30)        (2.49)
Gross Margin                                        1.81          1.18
Gross Margin %                                      44%           32%
Operating Expenses *                                (3.28)        (3.45)
Operating EBITDA                                    (1.47)        (2.27)
Depreciation / Amortization                         (0.88)        (0.88)
Interest Income                                     0.35          0.52
Miscellaneous income                                0.07          -
Foreign Exchange gain (loss)                        0.06          0.01
Net loss before income taxes                        (1.87)        (2.62)
Tax                                                 -             -
Net loss                                            (1.87)        (2.62)
Net loss per ADS (in US dollars), basic             (0.068)       (0.095)
Net loss per ADS (in US dollars), diluted           (0.068)       (0.095)
Weighted average ADSs outstanding (in millions)     27.59         27.59
* Stock-Based Compensation included in:                          
Cost of Revenues                                    0.01          0.01
Operating Expenses                                  0.07          0.13
                                                                  

Notes

  *Each ADS represents one half of an equity share.
  *The above numbers are subject to audit. An audit could result in
    adjustments which would result in the audited numbers varying from the
    numbers set forth above.
  *The company established an ESOP trust for the benefit of employees, which
    has acquired 1,015,000 shares (equivalent to 2,030,000 ADSs). These shares
    are treated as treasury stock and therefore are excluded from the EPS
    calculations.

Non-GAAP Measures Note

Operating EBITDA and non-GAAP operating expenses are the non-GAAP measures in
this press release. These measurements are not recognized under generally
accepted accounting principles (“GAAP”).

Operating EBITDA represents loss from operations prior to adjustments for
depreciation/ amortization, non-recurring items and other income or expense
and tax. However, other companies may calculate operating EBITDA differently.
Operating EBITDA is not intended to represent cash flows as defined by
generally accepted accounting principles and should not be considered as an
indicator of cash flow from operations. We have included information
concerning Operating EBITDA in this press release because management and our
board of directors use it as a measure of our performance. In addition, future
investment and capital allocation decisions are based on Operating EBITDA.
Investors and industry analysts use Operating EBITDA to measure the Company’s
performance compared to historic results and our peer group. The
reconciliation between Operating EBITDA and net loss, the GAAP measure, is as
follows:

                              
RECONCILIATION FROM OPERATING EBITDA TO NET INCOME
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions)
                                 
                                Quarter ended June 30
                                2013        2012
Operating EBITDA (Non-GAAP)      (1.47)        (2.27)
Depreciation / Amortization      (0.88)        (0.88)
Interest Income                  0.35          0.52
Miscellaneous income             0.07          -
Foreign Exchange gain (loss)     0.06          0.01
Net loss before income taxes     (1.87)        (2.62)
Tax                              -             -
Net loss (GAAP)                  (1.87)        (2.62)
                                               

Non-GAAP operating expenses represent our operating expenses comprised of
sales and marketing, product development and general and administrative
expenses excluding depreciation and amortization. We have used non-GAAP
operating expenses measure to compute our Operating EBITDA. A reconciliation
of GAAP operating expenses to non-GAAP operating expenses is as follows:

                               
RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions)
                                  
                                 Quarter ended June 30
                                 2013        2012
Operating Expenses (GAAP)         4.10          4.32
Depreciation/Amortization         (0.88)        (0.88)
Foreign Exchange gain (loss)      0.06          0.01
Operating Expenses (Non-GAAP)     3.28          3.45

Contact:

Rediff.com India Ltd.
Mandar Narvekar
Investor Relations and Corporate Affairs Contact
+91-22-6182-0000
investor@rediff.co.in
or
GW Communications (U.S.A.)
Glenn Wiener and Jay Morakis
212-786-6011 / 212-786-6037
gwiener@GWCco.com / jmorakis@GWCco.com
 
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