Information Given to Stock Exchanges

Outcome of Board Meeting on June 10, 2007

A meeting of the Board of Directors of the Company was held on June 10, 2007, and approved the following decisions:

The committee appointed for acquisition of M/s. Logistics Solutions, Inc (LSI) has given its recommendations. As per the committee recommendations, the consideration for acquiring the LSI division is 8 Million USD and further that the consideration will be paid by way of cash equivalent to 4 Million USD and the remaining will be paid in the form of cash/ kind/ royalties over a period of 12 months after monitoring the performance of the Company.

• The Board deliberated the matter and approved unanimously to go ahead with the acquisition since this acquisition gives ready launch for the Company in the international market
• The Board also further considered and firmly decided to complete the process of opening up a Branch office in US and other related formalities
• The Board has considered the copy of the letter received from UTI Bank Ltd., Dr. Radhakrishnan Salai Branch, Chennai for one time settlement of their dues. The total dues of Rs. 15 crores was reduced to Rs. 8 crores on this one time settlement. The Company accepted the one time settlement offer made by UTI Bank Ltd., and accepted the schedule of payments given by the Bank. As per the Schedule of payment, the Company will start re-payment from June 2007 and complete before the end of the year 2008
• The proposal of issuing shares on Preferential basis was accepted. The Preferential allotment of 4 crores equity shares of Re. 1/- each at the price of Rs. 3.50 per share for the amount upto Rs. 14 crores will be allotted, after obtaining shareholders consent and consent of all other statutory authorities, to the following persons/ entities

  1. Mrs. Usha Venkatramani (Promoter) 75,00,000 shares 2. Mr. A. Ganesan (Director) 25,00,000 shares 3. Mrs. Revathi 25,00,000 shares 4. Mr. Rajeev Agarwal 25,00,000 shares 5. M/s Real Fintech P Ltd., 50,00,000 shares 6. M/s Eyelights Events & Promotions (India) P Ltd., 2,00,00,000 shares

• Further, the above said same allottees will be entitled to the Convertible Warrants issue (each warrant will be converted into one equity share of Re. 1/- each) for the amount of Rs. 42 crores on the basis of 3 warrants for one share held by them.
• Further the Board has also considered and adopted the Notice convening Extra Ordinary General Meeting to obtain shareholders permission for the above said Preferential allotment of equity shares and warrants.