Ferro Alloys Corporation

Ferro Alloys Corporation Ltd has informed that the Company has been discharged by the
Board for Industrial & Financial Reconstruction (BIFR) from the purview of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) as per Summary Record of Proceedings of the Review Hearing held at BIFR on August 30, 2007, forwarded to us vide their letter dated September 21, 2007.

Accordingly, the Company is no more a SICK COMPANY and is having a positive net worth of Rs 83.75 Crores as of March 31, 2007.

Further, with the said discharge from BIFR, the Facor Group of Companies are now moving ahead with the envisaged expansion plans involving investment of Rs 2,500 Crores for setting up a Coal based 250 MW Independent Power Plant and 0.5 Million TPA Stainless Steel Plant.

FACOR's wholly owned subsidiary M/s. Eacor Power Ltd is soiling up a Cool based 45 MW Captive Power Plant with a capital outlay of Rs 200 Crores. Loan Rs 100 Crores from (REC) is sanctioned. This plant will be located at the existing site of the 60,000 TPA Charge Chrome Plant at Randia, Bhadrak.

FACOR has applied for a Coal Block in Orissa which is under consideration in the Ministry of Coal.

The power produced from this Plant shall be used for the production of High Carbon Ferro Chrome as may be required at Company's Charge Chrome Plant Randia in Orissa. This will not only help in reducing the dependence on State Electricity Authorities but is also likely to reduce the cost of power in the production of Charge Chrome as the Company is a power intensive industry.

The Company had a Turnover of Rs 195.19 Crores for year ended 2006-07 and Net Profit of Rs 16.09 Crores. The Turnover and Net Profit for 1st Quarter ending June 30, 2007 has been Rs 50.26 Crores and Rs 7.40 Crores respectively.