PRESS RELEASE :

DATE : 05 AUGUST, 2006.

This has reference to news items appearing in the media regarding the sanctions imposed by United States of America on our company. A number of business associates and well wishers have telephoned to us to know the true picture. In order to allay the fears of all our stake holders, we wish to submit the following facts.

1. We are one of the leading manufacturers of Amines, derivatives and speciality chemicals in India with ISO 9001-2000 Certification. We are a recognized export house in India.

2. Our products are used by all leading Pharma and Agro chemical Units in India and abroad.However our major market is in India and Exports do not constitute a major portion of our turnover.

3. We were supplying some of our products to certain customers in Iran who are reputed pharmaceutical companies

4. The said exports were miniscule and are not significant either in volume or in value.

5. We have obtained the end use certificate from these two organizations showing that the material supplied by us is used for manufacture of life saving drugs.

6. We have altogether stopped supplying to these companies from December, 2005 onwards.

7. The news that sanctions have been imposed on us now comes as a surprise to us since we have not violated any law of the land nor are the products covered under CWC Act.

8. We have been filing the relevant information and returns with all the Government entities such as CWC and DGFT regularly.

9. "Based on clarifications obtained from the US State Department the sanctions have no impact on our current and future customers in USA in terms of them being able to do any business with us."

10. Though there is no monetary loss to our Company due to the sanctions, our company has been unnecessarily blamed for no fault of ours.

11. We have already requested to Government of India for the necessary help in removing the sanction.For More Details

This statment is issued to put at rest any apprehensions our well wishers may have and we once again reiterate that we are not at fault and are taking up the matter with authorities to set the matters right.

D. Ram Reddy

Director Commercial

Balaji Amines Limited.

E-Mail : ram@balajiamines.com

1.U.S. SANCTIONS

2.IMPLICATIONS ON OUR COMPANY

3.OUR RESPONSE

4.INDIAN GOVERNMENT RESPONSE

     A.THE HINDU

     B.REUTERS INDIA

     C.DECCAN HERALD