Overall revenues for the 2012 fiscal second quarter were $3.84 million compared to $5.10 million in the 2011 fiscal second quarter, though sales and gross margins both improved sequentially, and both quarter-over-quarter and year-over-year losses declined for the comparable periods. The Company’s core online advertising business in India has shown a positive quarterly sequential growth of 7% in dollar terms, in the second fiscal quarter of 2012, amidst the prevailing economic slowdown in India and global uncertainty. In the same period, revenue from Rediff.com’s ecommerce business grew 20% on a quarterly sequential basis and 61% on a year on year basis, while maintaining a positive margin of 12%. “There continues to be difficult economic conditions which have curtailed our near-term growth, but we believe the promise of the broadband revolution remains very much a reality. We believe that the modest growth we are seeing in our India online and ecommerce businesses, and the uptick in demand for our News Search and RediffMail offerings, are early indicators that our strategy of positioning Rediff for future growth is beginning to gain momentum,” said Ajit Balakrishnan, Chairman and Chief Executive Officer of Rediff.com. “We are actively managing our expense structure but continue to invest in areas we believe will successfully position Rediff for the future, such as News Search, ecommerce, and local TV advertising. We are also improving our website functionality to provide a more rounded offering for both Indian consumers and our current and potential advertising partners,” Mr. Balakrishnan continued. Local TV ad services are now available in 10 Indian cities and the Company has started recognizing its first revenues. Rediff’s ecommerce offering also now includes 172,000 SKUs, which represents a 24.6% increase over the comparable second quarter last year. The number of vendors the Company works with today has also increased by 22% for the same periods. Additionally, Rediff’s News and information service is now deliverable on apps for platforms such as Android and Windows, while the flagship RediffMail service is available on mobile platforms such as Symbian, Java and Android.