Exhibit 99.1
 
 Rediff.Com Reports Results for the First Quarter Ended June 30, 2011
 Mumbai, India, July 26, 2011




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STATEMENT OF OPERATIONS
QUARTER ENDED JUNE 30, 2011
 (All figures are in US$ million, unless otherwise indicated below)
 Quarter ended June 302011
    
    
    2010RevenuesIndia Online
    
    
    4.42
    
    
    
    4.18US Publishing
    
    
    0.97
    
    
    
    1.00Total Revenues
    
    
    5.39
    
    
    
    5.18Cost of Revenues *
    
    
    (3.08
    )
    
    
    (2.48
    )Gross Margin
    
    
    2.31
    
    
    
    2.70Gross Margin %
    
    
    43
    %
    
    
    52
    %Operating Expenses *
    
    
    (4.32
    )
    
    
    (3.43
    )Operating EBITDA
    
    
    (2.01
    )
    
    
    (0.73
    )Depreciation / Amortization
    
    
    (0.94
    )
    
    
    (1.12
    )Interest Income
    
    
    0.78
    
    
    
    0.80Foreign Exchange (loss)
    
    
    (0.02
    )
    
    
    (0.05
    )Equity in net loss of equity method investee
    
    
    (0.11
    )
    
    
    (0.08
    )Net loss before income taxes
    
    
    (2.30
    )
    
    
    (1.18
    )Tax
    
    
    
    
    
    
    Net loss
    
    
    (2.30
    )
    
    
    (1.18
    )Net loss per ADS (in US dollars)
    
    
    (0.084
    )
    
    
    (0.043
    )Net loss per ADS (in US dollars) diluted
    
    
    (0.084
    )
    
    
    (0.043
    )Weighted average ADS Outstanding (in millions)
    
    
    27.31
    
    
    
    27.73* Stock based Compensation included in:Cost of revenue
    
    
    0.02
    
    
    
    0.01Operating expenses
    
    
    0.20
    
    
    
    0.01
 Notes
 
    
    Each ADS represents one half of an equity share.
    
    The above numbers are subject to audit and while no significant changes are
anticipated, an audit could result in adjustments which would result in the audited
numbers varying from the numbers set forth above.




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
    
    During the Fiscal year ended March 31, 2010 the company established an ESOP trust for
the benefit of the employees and purchased 750,000 shares (equivalent to 1,500,000 ADS).
During the quarter ended December 31, 2010 Trust purchased an additional 265,000 shares
(equivalent to 530,000 ADS). These shares are treated as treasury stock and therefore are
excluded from the EPS calculations.
    
    During the fiscal year ended March 31, 2011 the Company acquired Vubites India Private
Limited and consolidated its result of operations.
 Non-GAAP Measures Note
   RECONCILIATION FROM OPERATING EBITDA TO NET INCOME
QUARTER ENDED JUNE 30, 2011
 All figures are in US$ million
 Quarter ended June 302011
    
    
    2010Operating EBITDA (Non GAAP)
    
    
    (2.01
    )
    
    
    (0.73
    )Depreciation / Amortization
    
    
    (0.94
    )
    
    
    (1.12
    )Interest Income
    
    
    0.78
    
    
    
    0.80Foreign Exchange Gain/ (Loss)
    
    
    (0.02
    )
    
    
    (0.05
    )Equity in net loss of equity method investee
    
    
    (0.11
    )
    
    
    (0.08
    )Net loss before income taxes
    
    
    (2.30
    )
    
    
    (1.18
    )Net loss (GAAP)
    
    
    (2.30
    )
    
    
    (1.18
    )




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RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES
QUARTER ENDED JUNE 30, 2011
 All figures are in US$ million)
 Quarter ended June 302011
    
    
    2010Operating Expenses (GAAP)
    
    
    5.26
    
    
    
    4.55Depreciation/Amortization
    
    
    (0.94
    )
    
    
    (1.12
    )Operating Expense (Non-GAAP)
    
    
    4.32
    
    
    
    3.43
 For further details contact:      investor@rediff.co.in