UTV Software - Acquisition of Controlling Equity stake in Indiagames Ltd

With reference to earlier announcement dated December 08, 2006 regarding the Company has entered into an arrangement with Indiagames Ltd ("Indiagames") and its promoters for acquisition of a controlling equity stake in Indiagames Ltd, which is into business of mobile and online games based in Mumbai for a consideration of approximately Rs 68 crores, UTV Software Communications Ltd has informed BSE that subsequent to the above arrangement and pursuant to all the condition precedents having been satisfied in the relevant agreements entered into by the relevant parties (including the Company), UTV Communications (UK) Ltd ("UTV UK"), a 100% subsidiary of the Company on December 14, 2007 has acquired a controlling stake, constituting 62.42% of the issued share capital of Indiagames from Tom Online Games Ltd.

Simultaneously, with the aforesaid acquisition by UTV UK, the Company has also acquired a 12.11% equity stake in Indiagames by subscribing to Indiagames's share capital. In addition, UTV UK has an obligation to subscribe to additional shares amounting to 8% of the equity share capital of Indiagames for a value of USD 1.5 Million ("Additional Subscription").

On December 14, 2007 the Company along with UTV UK would hold approximately 66.97% of the existing capital of Indiagames. The total investment after the Additional Subscription will be approximately Rs 42.40 Crores in Indiagames. The key management of Indiagames has been granted certain management options. Upon exercise of such management options, UTV UK's shareholding in Indiagames shall be approximately 60% of the equity share capital of Indiagames.

UTV Software Communications Limited

News Verification : The media had reports that UTV Software Communications Limited may sell a minority stake in its broadcast unit. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company. UTV Software Communications Limited has vide its letter inter-alia stated, "We have to say that, the Company keeps evaluating various options to fund the Broadcasting initiatives, this may include sale of equity stake. The Company has been in discussions with various investors, however, no such specific proposal / investor has been finalized, except a joint venture business with Astro Multimedia International (BVI) Limited ("Astro") for establishing a television channel as informed on 24th November 2006, which is subject to regulatory approvals. Suitable intimation will be given to the Stock Exchange as and when any such specific proposal / investors are approved by the Board."