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 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 Indiagamess 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 UKs shareholding in Indiagames shall be approximately 60% of the equity share capital of Indiagames.