Essar - Peninsula Land deal

With reference to the news item appearing in a leading financial daily titled "Essar Strikes largest office space deal for Rs 1,200 cr", Peninsula Land Ltd has clarified that the Company has entered into a Development Agreement dated March 31, 2004 with Swan Mills Ltd (Swan) in respect of Swan's land at Kurla for constructing a four building complex known as "Peninsula Technopark Complex" (Complex). As per the said Development Agreement entered with Swan, the entire development, execution and marketing of the project is being undertaken by the Company for which the Company is entitled to 22% revenue share in respect of the buildings being sold at the said Complex.

In September, 2007, Swan had entered into:

1. An Agreement for sale of two buildings located at the said Complex having an aggregate area of 7.2 lakhs sq.ft. for an aggregate consideration of Rs 1,065,00 crores to Essar Technology Park BKC Pvt. Ltd. (Essar). A sum of Rs 120.00 crores was received by Swan from Essar out of the aforesaid aggregate consideration and based on the Development Agreement, the Company received a sum of Rs 26.4 crores from Swan for the said transaction.

2. An Agreement with Essar Information Technology Ltd. for Leave & Licence for another building of 1,57,300 sq.ft. in the said complex for a period of 60 months.