Blue Star Scheme of Arrangement

Blue Star Ltd has informed that in a circular resolution passed on January 11, 2008, the Board of Directors of the Company has considered and approved a Scheme of Arrangement ("the Scheme") between the Company and its shareholders and creditors, which inter- alia provides for the reinstatement of the assets of the Company at their respective fair values that are in accordance with the management views and the consequent adjustment in the General Reserve Account for any excess / shortfall arising on account of such revaluation.

The Scheme is subject to requisite consent / approval of the requisite majority of the shareholders of the Company, the Hon'ble High Court of Judicature at Mumbai, Stock Exchanges, the permission or approval of any other statutory or regulatory authorities, which by law may be necessary for the implementation of the Scheme.