Mold Tek Technologies to acquire KPO company

Mold Tek Technologies Ltd has informed that the Board of Directors of the Company at its meeting held on November 07, 2007, has approved the MOU signed for 100% acquisition / merger of USA based structural Engineering KPO Company and also its associate Company in India. The Board of Directors authorized the Chairman and Managing Director to go ahead with the due diligence and valuation process. These Companies specialize in providing Structural Engineering Services to "High-Rise Buildings" and have about 90 Engineers working in its Indian and USA Offers.

The acquisition will enhance Mold-Tek's revenue by 125% in the "High-Rise Buildings Segment" and will enable Mold-Tek to emerge as a major player for KPO engineering Services in this segment where the potential from US and European Clients is enormous. With this acquisition Mold-Teks KPO Division is expected to maintain better than 100% + annual growth, which it has been achieving in the last few years. Through this acquisition, Mold-Tek will also add 20 more new clients to its present 40+ clients in USA and Canada, while the total manpower will rise 350 engineers (more than 150% rise over last year."

Mold Tek Technologies

Mold Tek Technologies Ltd has informed about "Clarification towards concerns expressed by some of the Investors and Analysts" as follows:

"1. There is no effect of US Sub prime issue and corresponding drop in growth of Housing in USA on our Structural Engineering KPO.

(i) Our Structural Engineering Services constitute very insignificant portion (much less than even 0.001%) of overall Engineering Services that are outsourced in USA. Hence a 5-6% drop in Construction Activity in USA will have no impact in our order flow.

(ii) In fact the Company's recent foray into high-rise commercial buildings is growing rapidly and contributing handsome growth and higher value addition (more than rupee appreciation). Our KPO revenues are growing around 100% over the last year.

(iii) Company acquired a US based Engineering Services firm which is spearheading Marketing, QC and Client Coordination resulting in getting "larger clients and projects".

(iv) Only 15 engineers out of 250 in Mold-Tek-KPO are in Residential Projects.

(v) Even if the Housing growth and Prices are coming down in USA, it will make American Builders and fabricators to save costs by choosing more outsourcing which is at present far less than 0.1% of the Market Size."

Mold Tek Technologies

Mold Tek Technologies Ltd has informed that the members at the 23rd Annual General Meeting (AGM) of the Company held on September 26, 2007, inter alia, have considered and approved the following:

1. Adoption of the Audited Balance Sheet as at March 31, 2007 and the Profit & Loss Account for the year ended on that date together with the Auditors and Directors Report thereon.

2. Declaration of Dividend @ 20% for the year ended March 31, 2007.

3. Re-appointment of Mrs. J Mythraeyi and Dr. K V Appa Rao, as Directors of the Company, retiring by rotation.

4. Re-appointment of M/s. Praturi & Sriram, Chartered Accountants, as Statutory Auditors of the Company to hold office until the conclusion of the next Annual General Meeting of the Company.

5. Adoption of Special Business as mentioned in Notice of Annual General Meeting in Annual Report of the year 2006-07.