Vippy Industries - Outcome of Board Meeting

Vippy Industries Ltd has informed that the Board of Directors of the Company at its meeting held on December 08, 2007, inter alia, has considered the following:

1. The Company has taken note of Honble BIFRs (Board for Industrial and Financial Reconstruction) order dt. October 04, 2007, as part of the sanctioned rehabilitation scheme of the Company.

2. As per Rehabilitation scheme approved, by Honble BIFR, the Board of Directors has decided to give effect as under:

(a) The existing issued and paid up share capital of the Company be reduced by 90% i.e. the face value and paid up value of the existing Equity Shares shall be reduced from Rs 10 to Re 1/-.

(b) The existing authorised share capital Rs 25,00,00,000 consisting of 1,50,00,000 equity shares of Rs 10/- each, and 10,00,000 preference shares of Rs 100/- each be reclassified into 25,00,00,000 equity share of Rs 1/- each and consequential amendments in the Memorandum & Articles of Association of the Company.

(c) Post reduction, to issue convertible share warrants of Re 1/- each at par to promoter / promoter Companies on preferential basis as per the order dt. October 04, 2007 of Honble BIFR as part of the sanctioned rehabilitation scheme of the Company. Shri. Rahul Mutha, Managing Director of the Company is authorized to collects application, consent, cheques and other necessary paper etc and communication to be made to applicants for the above purpose. And also decided that the board Meeting to be scheduled on December 31, 2007 for the allotment of warrants convertible into equity share. Further the Board decided to apply to the Exchange for granting in-principal approval for issue and allotment of 15,00,00,000 convertible share warrants of Re 1/- each at par after giving effect to the reduction of paid up share capital of the Company.