Asian Electronics

With reference to the news item appearing in a media channel on September 25, 2007 in relation to the agreement between the Company (Asian Electronics Ltd) and Hindustan Petroleum Corporation Ltd ("HPCL") which was executed on September 06, 2007 (the "Agreement"), Asian Electronics Ltd has clarified that the Company has not, directly or indirectly, made any announcement or cause any announcement in any media, in respect of the Agreement or the status of the Agreement since the Agreement executed with HPCL had a confidentiality covenant.

For the sake of clarity and removal of doubts, the Company has to inform that it has executed an agreement with HPCL on September 06, 2007 and the Agreement is valid, binding and subsisting as on date.