TULIP TELECOM LTD. - Clarifies on News Item

With reference to the news item appearing in a leading financial daily titled "Tulip Telecom CMD arrested for alleged Rs. 32 Crore service tax evasion", Tulip Telecom Ltd has Clarified to BSE as under:<br/><br/>"The Service Tax Department has detained our Chairman, Lt. Col. H. S. Bedi, for alleged evasion and delay in payment of service tax. The company has undergone significant liquidity pressures over the last 2 years and filed for CDR in December, 2012. Tulip has been a timely payer or statutory dues over the past many years and expects to resolve this issue at the earliest".