Arrow Webtex - Outcome Of Board Meeting

Arrow Webtex Ltd has informed that the Board of Directors of the Company at its meeting held on December 13, 2007, inter alia, has transacted the following:

1. Subject to such consents and statutory approvals as may be required in this behalf and execution of the definitive documents in this regard, approved:

a. The Term sheet for allotment of 2,031,567 equity shares of Rs 10/- each of the Company on a Preferential Allotment basis to India Advantage Fund III and also a simultaneous issue of 224,850 convertible warrants to India Advantage Fund III in each case, at a price not lower than the price determined in accordance with the provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 in this regard.

b. The Term sheet for allotment of 10,16,461 Equity Shares of Rs 10/- each of the Company on a Preferential Allotment basis to Pacific Corporate Services Ltd and also a simultaneous issue of 112,500 convertible warrants to Pacific Corporate Services Ltd., in each case, at a price not lower than the price determined in accordance with the provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 in this regard.

2. Resolved the issuance of 1,162,650 convertible warrants to the Promoters of the Company, to be issued simultaneously with the issuance of the warrants contemplated above.

3. Resolved to conduct an Extra Ordinary General Meeting of the Members of the Company for the aforesaid proposals on January 07, 2008.

4. Resolved authorizing the Chairman of the Company to issue the Notice to the Shareholders of the Company and also to sign the Term Sheet on behalf of the Company for the allotment of the aforesaid equity Shares.