GMM Pfaudler - Outcome of Board Meeting

GMM Pfaudler Ltd has informed that the Board of Directors of the Company at its meeting held on December 07, 2007, inter alia, has considered and approved the following:

1. It was decided to form a wholly owned subsidiary of the Company in Switzerland in the name of GMM Mavag AG or such other name as may be approved by the Swiss authorities.

The Board of Directors also discussed a proposal for the acquisition of Mavag AG, a Company incorporated in Switzerland. Mavag AG is a leading supplier of highly engineered, critical equipment and systems for the Chemical, Pharmaceutical and Biotech Industries. The acquisition of Mavag AG will enable the Company to get an immediate and significant business presence in Europe and access to the latest technology for the Indian market.

The Board of Directors has authorised Mr. Ashok J Patel, Managing Director to take effective steps to complete the formation of the wholly owned subsidiary and for the wholly owned subsidiary to enter into definitive agreements with Scherrer AG to purchase 100% equity of Mavag AG.

2. An extra-ordinary General Meeting of the members of the Company will be convened on January 18, 2007, for the approval of members to the revision in terms of appointment and remuneration of Mr. Tarak Patel, Whole-time Director.