Audited financial results for FY 2006 - 07 and Q4 FY 2007*

Place: Mumbai Date: August 29nd 2007

BILT’s full year PAT up by 18.3% to Rs. 2507.46 million

BILT’s Q4 FY 2007 Paper and Paper Products Revenues up by 7.2% at

Rs. 5162.5 million

BILT’s full year Paper and Paper Products Revenues up by 16.7% at Rs. 20501.3 million

Dividend declared @ 30 % (Including interim dividend of 15% paid earlier)

Ballarpur Industries Limited (BILT) today announced its financial and operating results for FY 2007 and Q4 FY 2007.

According to a statement issued by the Company:

“Our current year’s performance has been positive and reflects a firm market condition. This has been supported by a compact demand growth across the paper industry. With the expected growth of the economy, an increase in the per capita consumption of paper is expected. A positive industry cycle makes us confident of maintaining our market leadership and building on our performance in the coming quarters”.

*BILT follows a July 1 – June 30 fiscal year; therefore the current announcement covers the Company’s financial performance for the fourth quarter and twelve months of Fiscal 2007.

Performance highlights for FY 2007 vs FY 2006

FY 2007 (July – June 2007) compared with FY 2006 (July – June 2006):

Paper and Paper products revenues are higher by 16.7% to Rs 20501.3 million compared to Rs 17565.3 million in the last year. PBIDT has increased by 14.17% to Rs 5654.90 million from Rs 4952.97 million, while PBT and exceptional items is higher by 28% at Rs 3236 million compared to Rs 2528.1 million. The Company’s cash generation from operations (PAT + Depreciation & Amortisation+ Deferred Tax Liability) has increased by 12.8 % to Rs 4513.26 million from Rs. 3999.79 million.

Q4 FY 2007 (April – June 2007) compared with Q4 FY 2006 (April – June 2006):

Paper and Paper products Revenues have grown by 7.2% at Rs 5162.5 million compared to Rs 4814.9 million over the same quarter in previous year. EBIDTA for the quarter has improved by 10.9% to Rs. 1501.60 Mn compared to 1355.8 Mn , while PBT and exceptional items has increased by 15.56 % to Rs 847.6 million from Rs 733.5 Million. The Company’s cash generation from operations (PAT + Depreciation & amortization + Deferred Tax Liability) has increased 1 % to Rs 1176.67 million from Rs 1165.45 million.
Operating overview:

1. PBT growth was 22.%, while the Net Profit grew by 18.3% over the previous year
2. Net Profit has increased by 18.3% to Rs.2507.5 millions from Rs.2120 millions
3. EBITDA for the year increased by 13.56% to Rs.5765 millions from Rs.5073.2 millions.
4. EBITDA margin (net of excise, internal transfers and other income) was 26.15% for the year as compared to 26.48% during the previous year.
5. Fully Diluted EPS grew from Rs. 11.12 to Rs.13.77, reflecting a growth of 23..9%
6. Total writing and printing paper production of 112814 MT in Q4 FY 2007 compared to 110377 MT in Q4 FY 2006.
7. Total writing & printing paper sales of 113336 MT in Q4 FY 2007 compared with 111545 MT in Q4 FY 2006.
8. Total writing and printing paper sales at 457490 MT compared to 407335 MT in the last year.
9. Interest costs at Rs. 225.5 million during the fourth quarter, 6% higher than the corresponding quarter previous year. Yearly interest cost lower by over 6% at Rs. 869.8 million.
10. The consolidated gross revenues including Sabah Forest Industries ( SFI) for the

current year was 2524.21 crores registering an increase of 21.9 %.

11. The consolidated PAT including SFI was Rs. 255.97 Crores as against Rs 214

crores registering an increase of 19.6% .

About BILT

Ballarpur Industries Limited (BILT) is India’s largest manufacturer of Writing and Printing Paper with 21% of the W&P market and approximately 53% of the coated paper market. BILT has six paper mills in the states of Orissa (Unit Sewa), Haryana (Unit Shreegopal), Maharashtra (Unit Ballarpur, Bhigwan and Ashti) and Andhra Pradesh (Kamalapuram) together with a capacity of 480,000 tpa and a pulp mill of capacity 100,000 tpa manufacturing rayon grade pulp, in the state of Andhra Pradesh (Unit Kamlapuram). All of the Units (except Ashti) possess captive power generation capacities and, with the exception of Bhigwan & Ashti, also possess captive pulp making capacity. Together, these Units give the company geographic coverage over most of the Indian market.

For further information please contact:

B Hariharan

Group Director (Finance)

Tel: +91 – 124 – 5099 217

Fax: +91 – 124 – 280 4260

e-mail: bhariharan@bilt.com

Rohit Varier

Image Inc.

Mobile: 9819403110

Disclaimer:

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of strategic initiatives, potential product characteristics, uses and sales potential are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially. BILT may, from time to time, make additional written and / or oral forward looking statements, including statements contained in the Company’s filings with the regulatory bodies and our reports to shareholders. The Company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.

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