United Phosphorous press release

"The Company has previously stated that one of its strategies is to grow through acquisitions. At any point of time, we evaluate opportunities for acquisitions and are at this time evaluating a few such opportunities. We are currently evaluating whether to bid to acquire a target that is a major Asia-based Company in the agrochemicals sector, of a size substantially similar to us. The target, if acquired, would represent a substantial and material portion of our total assets and revenues on a post-completion basis. We have executed a confidentiality a which prohibits us from disclosing details of the target or the competitive bid process.

The acquisition process requires us to participate in a competitive bidding situation. There are other bidders for the target and we are in the second round of the competitive bid process for the target. We intend to make a bid for the target shortly. There is no assurance that our bid will be accepted or that we will enter into definitive agreements to acquire the target. Even if we enter into definitive agreements to acquire the target, there is no assurance that the conditions to closing under such agreements will be satisfied, or that we or seller will be able to consummate the acquisition. If we are successful in our bid, we expect to finance the acquisition with the issuance of equity, as well as with cash from operations, our existing cash balances, substantial debt financing, or any combination of these. We can give no assurance that we will be able to arrange financing on acceptable terms, if at all, to complete the acquisition. Due to the significant size of the target, the debt financing for the acquisition could be substantial and significantly increase our and the target's debt leverage. The acquisition of the target may or may not be dilutive to our consolidated earnings. If the acquisition is financed by the issuance of our equity shares, it would dilute the ownership interest of our shareholders."