Spice Mobiles Net Profit jumps 18 times in Q1 June 2009, turnover up by 43% at 182 Crs

· Expects strong results in Q2 as well and is determined to grow its market share to 10% by 2010

· Targets Expansion in overseas market- after successfully launching in Nepal, Africa , Bangladesh, Indonesia and Malaysia

New Delhi, July 31, 2009: Spice Mobiles further consolidated its position during the quarter ended June 2009. The company observed 43% growth in the turnover and the profit before tax went up by 45 times whereas the profit after tax increased by 18 times since the corresponding quarter of last year. Spice Mobiles has observed fast paced growth in the quarter with increased distribution and retail presence and very successful product launches under the BIG series of products.

The growth of Spice Mobiles is synchronous to the multiple launches of innovative and advanced products, besides consolidating in several regional domestic markets. Strong markets such as Rajasthan, Madhya Pradesh, Haryana etc continue to bring in substantial sales volume. As part of its ambition and business objectives of globalizing its business, the company has accessed international market with entries into Nepal, Africa, Bangladesh, Indonesia and Malaysia. Concurrently, Spice Mobiles is focussing on entering newer global markets in the i-2-I region (Israel-to-Indonesia).

Expressing his happiness at the healthy financial performance, Mr. Dilip Modi, Chairman – Spice Mobiles Ltd. said, “Spice Mobiles has always sought to be innovative in entering new markets with consumer relevant new product offerings. This has stood us in good stead. Our pillars of growth have been our strong brand equity, distribution and robust national service setup and we aim to keep strengthening each of these pillars as our foundation for future growth.”

The company recently revamped its brand image with the introduction of a new logo to establish its distinct appeal. Spice continues to provide products with differentiated features ensuring customer delight with the BIG Series phones that promise big features at good value. The VAS offerings bundled on Spice Mobile handsets are quite unique and innovative, and are a big hit with the consumers. In fact, it is these diverse range of VAS offerings that are the true differentiator and make us stand out amongst a plethora of brands and models available in the country.

Spice Televentures Private Limited, which is part of the Dr. BK Modi-led Spice Group recently consolidated its shareholding to 63.25% in Spice Mobiles. This will augment value for all stakeholders and help achieve greater business focus and growth for the company.

About Spice Mobiles Ltd.

Spice Mobiles Ltd. is a part of Spice Televentures, a multi-faceted group with an exclusive telecom eco-system in India. With “Innovation” as the company’s mantra, Spice began the process of revolutionizing the Communication & Entertainment sector, with its new age technologically advanced state of the art mobile phones.

Debuting with handsets targeted at the entry-level segment, today, the brand is growing rapidly and has a bouquet of offerings targeting entry, mid & premium segments. Spice Mobiles Ltd has heralded a new chapter in the history of Indian mobile telephony by launching the first ever DUAL MODE PHONES. Continuing with the same trend of delivering breakthrough products, Spice Mobiles launched the new Spice D-1100, India’s first Dual SIM PDA (GSM/GSM).

Spice Mobiles is the proud winner of the Golden Peacock Award for innovative product / service for the year 2007. Spice Mobiles added more firsts to its credit by announcing the Global premier of the World’s First Movie Phone and Peoples’ phone at the World Mobile Congress, Barcelona in February 2008.

Riding on the success of its venture, Spice Mobiles Ltd. has strengthened its footprint, built a strong value proposition with the customers and established itself as a competitive brand amongst the host of International players. Moving forward, the company aims to achieve further brand acceptability among all target segments through a broader offering of cutting-edge handsets that combine mobile phone functionality with enriched content and smart device capabilities for greater high-speed voice and data capacity.

For further information please contact:

Nupur Bhardwaj / Jagriti Motwani

LinOpinion – The LINTAS PR Division

Tel: (0) 9818166416 / (0) 9910144661

E-mail: nupur.bhardwaj {at} lintasindia(.)com, jagriti.motwani {at} lintasindia(.)com