Shetron - Outcome Of Board Meeting

Shetron Ltd has informed that the Board of Directors of the Company at its meeting held on November 14, 2007, has considered and approved the following:

1. The recommendation of the independent professional valuation report submitted to the Board by M/s. Grant Thornton and has decided to acquire 100% equity stake in M/s. Shetron Sobemi Europe N.V., Belgium, an unlisted Company in Europe producing similar products to serve European markets which will enable the Company to achieve synergies in production.

2. The draft Scheme of Amalgamation of an unlisted Company i.e. Fibre Foils Ltd having its office building in Mumbai and plant at Khopoli, Maharashtra, producing paper packaging and other products engaged in the similar line of business as the Company with the Company pursuant to the provisions of the Companies Act, 1956 and other applicable provisions.

3. That under the proposed Scheme of Amalgamation, Eight fully paid up equity share of Rs 10 each of the Company will be issued for every One equity share of Rs 100 each of Fibre Foils Ltd based on the Valuation Report for the purpose of determining the share exchange ratio, submitted by M/s. Grant Thornton. The swap ratio is calculated at 10% discount to the valuation of Fibre Foils Ltd as done by Grant Thornton, an independent, professional valuation firm.

The matters as approved by the Board shall be subject to the approval of members, the Honble High Court of Judicature at Mumbai and the Honble High Court of Judicature at Karnataka and other required approvals.