Jindal Saw Limited hives off its interests in USA affiliates

Jindal Saw Limited hives off its interests in USA affiliates

Mumbai, August 21, 2007: The Board of Directors of Jindal Saw Limited (JSL), in a special meeting held on August 21, 2007, has accorded their approval to divest its entire interest in US operations. JSL has minority interest in US companies, which are unlisted.

JSL has agreed to divest its minority stakes in all the US companies at a total enterprise value of approximately USD 900 million for these companies. A part of enterprise value will go to satisfy debt and outside liabilities in these companies. Under the terms of the transaction, which are in the process of finalization, JSW Steel Limited, through its off shore subsidiary, will acquire the stocks held by JSL against payment of cash. The transaction will be subject to receipt of necessary approvals from various authorities.

The contemplated transaction will yield post tax cash inflow of exceeding USD 200 million against a nominal initial equity investment. The funds inflow will add significant value to JSL business. JSL will gradually invest the funds for creation of additional world class facilities, investment in new business opportunities and for modernization of existing facilities, wherever required. Pending deployment of the funds, JSL will de-leverage its balance sheet resulting in reduction in finance costs and improvement in credit profile. Further, the divestment will also reduce the investments in working capital.

FUTURE OUTLOOK

JSL believes that increase in refining capacity and investments in oil and gas infrastructure will drive the demand for line pipes from domestic and nearby global markets especially Middle East, Africa and South East Asian countries. These markets cater to app. 45% of the total world’ demand of line pipes. JSL is well positioned to reap the benefits with more focus on the Pipe production. We expect demand of all pipes to rise year on year and JSL by additional investments in new world class facilities would be a dominant player in the Indian Pipe Sector.

About Jindal Saw Limited:

A key player in global energy and water infrastructure Jindal SAW Ltd. is one of the country’s largest producers of SAW pipes, which is widely used in the energy sector for transportation of oil and gas. With integrated facilities at multiple locations and an ever-expanding market opportunity, it has diversified from a single to a multi-product company, manufacturing Submerged Arc Welded Pipes, Spiral Pipes and bends for the energy transportation sector; carbon, alloy and stainless steel Seamless Pipes and tubes for industrial applications; and Ductile Iron pipes for water and sewage transportation.

Besides this Jindal Saw Ltd. provides value added products and services like anti-corrosion coatings for pipe and bends, induction bends and connector casings.

Jindal Saw Ltd. today is an established market leader and global major providing Total Pipe Solutions spanning continents.

For further information, please contact:

Zeenia on 9820476388 OR Rohit on 9819403110