ABG Shipyard - Outcome Of Board Meeting

ABG Shipyard Ltd has informed that the Board of Directors of the Company at its meeting held on September 12, 2007, has considered and approved the Companys involvement in the proposal for revival and rehabilitation of Western India Shipyard Ltd (WISL) in terms of a scheme of compromise and arrangement between WISL and its secured lenders, with the Company as a confirming party, under Sections 391394 of the Companies Act 1956 (the Scheme). The Scheme provides certain options for the restructuring /one time settlement of the debt of the secured lenders of WISL with the involvement of the Company, along with other matters connected with the compromise and arrangement, including reorganization of share capital of WISL.

All the above are subject to requisite approvals including those of Stock Exchanges under the Listing Agreement, shareholders of WISL creditors of WISL, any regulatory authorities and sanction of the scheme of compromise and arrangement in terms thereof by the High Court of Bombay at Panaji, Goa.