UTV Software dilution reports

With reference to the various press articles recently on UTV and the intense speculation on the media about further dilution of the share capital of UTV and funding for the Broadcasting initiatives of the Company, UTV Software Communications Ltd has put forth the following:

- As informed earlier, the Company is in advanced discussions with some strategic Investor and / or a financial investor to fund the Broadcasting Initiatives;

- Nothing has been concluded as the parties are still undertaking due diligence and as such the deal will have the usual uncertainty surrounding any transaction activity:

- Any deal, if materialized could include issue of shares of UTV Software Communications Ltd and an investment in the broadcasting initiatives depending on deal structuring;

- The Company has obtained the approval of the members on September 25, 2007 to raise a sum of USD 100 million through issue of Securities. The Company has also applied to Foreign Investment Promotion Board ("FIPB") for issue of shares aggregating to USD 100 million through Issue of Foreign Currency Convertible Bonds, American Depositary Receipts, Global Depositary Receipts and / or equity shares under a qualified institutions placement under Chapter XIIIA of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 and such approval has still not been received by the Company;

- If and when a deal is reached it will naturally be subject to Board, Shareholder and all Regulatory approvals;

- The Company's Board is fully apprised of these facts

The Company will continue to keep the Exchange updated on progress, if any.