IT People - Outcome Of Board Meeting

IT People India Ltd has informed that the Board of Directors of the Company at its meeting held on November 27, 2007, has approved the Amalgamation of Marketplace Technologies Pvt. Ltd (MTP), a private limited Company, and Orient Information Technology Ltd. (OITL), into the Company, subject to the requisite approvals from the members and creditors of the three Companies, regulatory authorities and the Honble High Court of Judicature of Bombay.

The Board of Directors of the Company has also approved the Exchange Ratio for the proposed Amalgamation of MTP into the Company, as suggested in the valuation report of Haribhakti & Co., Chartered Accountant, as under:

1. One Thousand Six hundred & Thirty Four (1634 nos.) Equity shares of Rs 2/- each in the Company for every One Thousand (1000 nos) Equity shares of Re 1/- each held by the shareholders of MTP.

2. One Thousand Nine Hundred & Sixty One (1961 nos.) 0% (Zero Coupon) Redeemable Preference Shares of Rs 10/- each in the Transferee Company for every One Thousand (1000 nos) Equity Shares of Re 1/- each held by the shareholders of MTP.

3. Payment of Rupees Fourteen Thousand Seven Hundred & Ten Only (Rs 14710) by the Transferee Company for every One Thousand (1000 nos) Equity Shares of Re 1/ each held by the shareholders of MTP.

The Board of Directors of the Company has also approved the Exchange Ratio of One Hundred (100 nos.) Equity Shares of Rs 2/- each in the Transferee Company for every Two Hundred & Seventy Five (275 nos.) Equity Shares of Rs 10/- each held by the shareholders of OITL for the proposed Amalgamation of OITL into the Company, as suggested in the valuation report of Gadgil & Co., Chartered Accounts & IT People Valuation done by Haribhakti & Co., Chartered Accounts.

The proposed Amalgamation shall be carried out under a Scheme of Arrangement to be filed before the Honble High Court of Bombay.