AKSH OPTIFIBRE LTD. ANNOUNCES EXPANSION PLANS

Mumbai 29th May 2001: Aksh Optifibre Ltd., India's second largest optic fibre manufacturing company today formally announced plans to expand its optic fibre, optic fibre cable and FRP capacities. On the occasion, the Company also hosted their first analyst meet post their IPO announcement in August 2000.

Aksh Optifibre Ltd., currently a Rs. 145 crore company, plans to expand its current capacities of Optical Fibre Cables from 82,038 ckm to 2,10,000 ckm, its Fibre capacity from 14,50,000 fkm to 53,00,000 fkm and its FRP capacity from 3,00,000 km to 10,00,000 km by March 2002.

Aksh has recently set up the world's largest FRP manufacturing facility at Ringus, Rajasthan.

Aksh had closed its IPO in August 2000 and raised Rs. 358.10 million. Under the IPO project, Aksh has enhanced its fibre cabling capacity to 82,000 ckm. One fibre tower of 650,000 fkm has recently been commissioned while another fibre tower of 650,000 fkm is in the process of being installed. The fibre towers are expected to bring down fibre making costs significantly. Aksh has also installed equipment for Sleeving Lathe and Preform Etching process.

The company also acquired a coveted BSNL order for Rs. 60 crores in the previous financial year and has strong potential orders in the pipeline from China.

In terms of exports, over the next three years, the company expects total exports to be approximately $200 million. With a well-established presence in the United States, Aksh is also exporting to the UK, Indonesia, Thailand, Taiwan, Israel and Jordan. Efforts are also on to enter the neighbouring high-growth telecom markets. Aksh has signed an export contract for US$172 million for cables to USA to be supplied over the next three years. There are several other negotiations in place including possible supplies to neighbouring countries like China. The foreign exchange earnings through exports amounted to Rs. 24.07 crores as against Rs. 4.09 crores in the previous year representing an increase of 488% over the last year.

Said Mr. Rajiv Naik, CEO, Aksh Optifibre Ltd. "Aksh Optifibre has managed to achieve exponential growth, year upon year. Our backward integration strategy coupled with a policy of moving up the value chain & forging strategic partnerships has helped us trailblaze in the industry. I am confident that our strategies complimented with unique people skills will take us to the position of industry leaders in the highly lucrative optical fibre businesses".