Uflex - Outcome of Board Meeting

Uflex Ltd has informed that the Board of Directors of the Company at its meeting held on December 27, 2007, has approved the following:

1. The proposal to increase the holding limit of Foreign Institutional Investors (FIIs) in the share capital of the Company by purchase / acquisition / allotment under Portfolio Investment Scheme Under Foreign Management Regulation Act subject to the condition that the total holding of the FIIs put together shall not exceed 74% of the paid-up equity capital of the Company.

2. The Companys proposal for preferential issue of 98,00,000 equity shares of Rs 10/- each and 98,00,000 warrants convertible into equity shares in one or more tranches a private placement basis to Foreign Investors at such price as may be decided by the Board of Directors in consultation with the proposed allottees, which shall, however, not be less than the price as per the SEBI (DIP) Guidelines.

3. Proposal for mobilizing funds for the Companys plans for expansion, modernization, acquisitions, capital expenditures, other corporate purposes etc. through issue, offer and allotment against subscription in foreign currency / INR through prospectus and / or offering circular / letter, equity shares of the Company and / or any other equity related instrument and / or Global Depository Shares (GDSs) and / or American Depository Shares (ADSs) against the issue of underlying shares and / or Foreign Currency Convertible Bonds (FCCBs) convertible at the option of the holder into equity shares and / or GDSs, to resident or foreign institutional investors including QIBs and such other persons resident outside India / companies / individuals as may be permitted under applicable law and policy whether or not they are members of the Company in such from as may be decided and in one or more trenches as may be deemed appropriate subject to a maximum sum of USD 250 million approximately equivalent to Rs l0000 million whether with or without an option to subscribe for additional Securities.