Hikal: Q2 registers record high net sales of Rs.78.1crore and PAT increases to Rs.14.5crore

~ Net sales up by 30%; PAT jumps by 84% ~

Mumbai, October 19th 2007: Hikal Ltd., the preferred long-term outsourcing partner for leading global life sciences companies, today announced its financial results for the second quarter ended 30th September 2007. The company posted net profit of Rs.14.5crore, witnessing 84% growth as compared to the corresponding quarter of the previous year.

Performance highlights for the Quarter ended 30th September 2007

§ Net sales up by 30% to Rs.78.1crore

§ PAT for the quarter increases by 84% to Rs.14.5crore

§ EBIDTA up by 48%. to Rs.23.6crore

§ Pharma sales up by 65%

Consolidating the half yearly performance of Hikal Ltd., the pharmaceutical business has recorded net sales of Rs.61.2crore as compared to Rs.39.6crore in the last year and the crop protection business has contributed Rs.73.1crore as compared to Rs.72.2crore in the last year

Commenting on the results, Jai Hiremath, Vice Chairman & Managing Director, Hikal Ltd., said, “The results in this quarter have registered an impressive growth of 84%. Considering the fact that Rupee has depreciated by 10-12%, a 30% increase in the turnover is indicative of the volume growth the company has witnessed in this quarter. We have been able to maintain the margins due to better product mix and higher sales volume.”

He further mentioned that “Our emphasis on the pharma business is paying off, we have been expanding capacities to cater to the increasing demand owing to the new contracts signed. While the crop protection business has shown steady growth, the pharma business has had a significant contribution to the overall turnover.”

Our effort on the restructuring of Marsing & Co. Ltd. A/S is paying off results. The losses for the quarter have come down by 66% and we expect the company to start generating cash profit by the end of the year.

Latest developments at Hikal

Hikal Ltd. recently appointed Dr. Helmut.R.Rupp as the president of the new Contract R&D Company. The company which is a 100% subsidiary of Hikal, called Hikal Technologies is setting up a state-of-the-art Contract Research facility at Pune, India. The first phase of the facility is in the final stages of construction and would be operational soon. The facility will provide chemical contract research services for clients in the pharmaceuticals, biotech and specialty chemical industries and special emphasis will be given to safety and scalability of processes provided, in order to facilitate smooth transfer to piloting and manufacturing operations.

Hikal has also set up new labs at the R&D facility at Bangalore and enhanced the existing capacities to cater to the increasing demands of the clients.

About Hikal Ltd.

Established in 1988, Hikal is a reliable partner to companies in the Pharmaceuticals, Agrochemicals and Specialty Chemicals industries. The company has positioned itself as a CRAMS company providing services to its customer right from gram scale to commercial scale. Our advanced manufacturing facilities have been inspected and approved by globally recognized bodies such as the

USFDA. Hikal is involved in custom synthesis and manufacture of Active Pharmaceutical Ingredients (API) & intermediates and Crop Protection Chemicals and has an API manufacturing facility in Jigani (Bangalore), manufacturing sites at Panoli (Gujarat), Taloja and Mahad (Maharashtra) and Hikal’s manufacturing activities are supported by state-of-the-art research centres and pilot plant facilities at Bangalore and Taloja.

For further information contact:

Hikal Ltd. – Ms. Sangeeta Salian @ 022 2757 4276, Email – sangeeta_salian {at} hikal(.)com

CMCG India – Ms. Nabanita Biswas @ 022 2445 0991, Email nabanita_biswas {at} cmcgindia(.)com