Texmaco - Outcome Of Board Meeting

Texmaco Ltd has informed that the Board of Directors of the Company at its meeting held on August 14, 2007, has approved the merger ratio for merger of the following Companies with the Company:

1. M/s. Neora Hydro Ltd - A JV Company in which the Company holds 50% of equity share capital. The merger ratio was approved at one Equity Share of the Company for every 65 shares held of M/s. Neora Hydro Ltd for 50% equity shares of the Company and balance 50% Equity Shares will be cancelled, being held by the Company.

2. M/s. Shree Export House Ltd - A wholly owned subsidiary of the Company dealing in investments. The entire share capital of the Company will be cancelled on merger, being held by the Company.

3. M/s. Evershine Merchants Pvt Ltd - A Company owning a prestigious property in Gurgaon, Haryana comprising of approx. 66,500 sq. ft. The merger ratio was approved at one Equity Share of the Company for every 28 shares held of M/s. Evershine Merchants Pvt Ltd.