Ispat Industries Ltd to hive of Jetty Facility and Operation;

Q3 and 9 Months Unaudited Results

Mumbai, January 31, 2008

At a meeting held today, the Board of Directors of the company approved, in principle, hiving off of the company’s jetty facilities / operations to an independent entity, subject to all requisite consents / approvals and valuation reports of valuers appointed for the purpose. The captive Jetty at Dharamtar, near Dolvi has a handling capacity of 10 million tonnes per annum.

Ispat Industries Limited posted a profit before tax of Rs 36.78 crores for the 9-months period ended December 31, 2007, compared to a loss before tax of Rs 130.67 crores for the corresponding period last year. The company’s net loss for 9-months period ended December 31, 2007 was at Rs 14.09 crores as against a net loss of Rs 91.65 crores for corresponding period last year, after taking into account deferred tax charges and fringe benefit tax.

Ispat’s total income of Rs 6103.63 crores for 9-month period ended December 31, 2007 was higher by 11.9% compared to its income in same period last year, as per the company’s unaudited financial results announced today.

For the 3-months ended December 31, 2007, Ispat’s loss after tax was at Rs 36.00 crores against a net profit of Rs 17.52 crores in the corresponding period last year. Total income at Rs 2195.68 crores in 3-months period ended December 31, 2007 was higher by 16.8% compared to the same period last year.

High market price of metallurgical coke, iron ore and other inputs impacted the financial performance in the third quarter.

Issued By Corporate Communications Department:

Mr Askari Zaidi, Vice President, Corporate Communications,

E-mail: Askari_zaidi@ispatind.com

Mr Suman Das Sarma, General Manager, Communication Strategy,

E-mail: Suman_sharma@ispatind.com

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