Updates

January 7, 2013

To

The London Stock Exchange

10 Paternoster Square

London

EC4M 7LS

Dear Sirs

Updates

This is to inform you that the holders of the outstanding U.S.$127,721,000 5.70% Secured Convertible Bonds due 2017, convertible into ordinary shares of Subex Limited ("Bonds"), have at a meeting of the Bondholders on January 4, 2013, undertaken certain actions in relation to the Bonds. A summary of the key actions taken is set out below.

(i) The Bondholders have waived the requirement under the terms and conditions of the Bonds ("Terms") for the Company to make the scheduled payments of interest on January 6, 2013 and July 6, 2013, on the condition that a sum of U.S.$57.00 for each U.S.$1,000 principal amount of Bonds is paid to the Bondholders when the Bonds are redeemed;

(ii) The Bondholders have waived the requirement for a prior approval by an extraordinary resolution of the Bondholders for the incurrence of additional indebtedness by the Company so that the aggregate quantum of indebtedness may exceed the U.S.$40,000,000 maximum debt level previously appearing in the Terms by up to an additional US$10,000,000.

Please find enclosed herewith for your reference and records a copy of the notice communicating outcome of the meeting to the holders of 5.70% Bonds and a copy of Notice of the Meeting dated December 14, 2012.

Thanking you,

Yours truly

For Subex Limited

Ganesh K V

Sr. Vice President - Finance & Company Secretary