ICI Updates

ICI India Ltd has informed that with reference to the notes 4 & 5 to the unaudited financial results of the Company for the quarter ended September 30, 2007, which are reproduced below:

"1. On August 13, 2007, Akzo Nobel NV ('Akzo') made a formal offer for acquisition of shares of Imperial Chemical industries PLC (ICI PLC). After evaluation, the Board of Directors of ICI PLC has recommended the offer to the shareholders. The process will involve necessary approvals from shareholders of both Companies and concerned regulatory authorities.

2. During the year ended March 31, 2007, the Company had sold its Paints Advanced Refinish business to Asian PPG Industries Ltd (APPG). As per terms of the agreement with APPG, the above acquisition (as referred to in Note 4) would give rise to a payment to APPG of Rs 1.10 crores per month from the date of change of control upto July 2009. Although, the Company does not have any present obligation to pay the above amount, the obligation would arise in case the above take over of ICI PLC by Akzo is concluded."

Further to above, the Company has informed that Akzo has become owner of the entire equity share capital of ICI PLC (which, as on date, holds 53.88% of the equity capital of ICI India Ltd) on January 02, 2008, by means of a scheme of arrangement under section 425 of the (English) Companies Act 1985.