Tera Software - Outcome Board Meeting

Tera Software Ltd has informed that the Board of Directors of the Company at its meeting held on January 31, 2007, has allotted 2235772 equity shares of Rs 10/- each in electronic form and 66603 equity shares of Rs 10/- each in physical form as bonus in the ratio of 1:4 to the existing shareholders as on November 24, 2006 by capitalizing the reserves pursuant to approval of members at their meeting held on September 29, 2006 and the book closure decided by the Board at their meeting held on October 28, 2006.