MARG forges deal with Pembinaan Redzai

Mumbai, October 29, 2007: Karaikal Port Private Ltd (KPPL), a wholly owned subsidiary of MARG Constructions Ltd signed a Memorandum of Understanding with Pembinaan Redzai Sdn Bhd, a leading Malaysian entity, to explore potential co-operation on a variety of areas for the Karaikal Port project.

An experienced port operator, Pembinaan Redzai Sdn Bhd will take the mandate of providing the KPPL team with strategic management and operational expertise to develop Karaikal Port into a leading port in the area.

Pembinaan Redzai Sdn Bhd and MARG Constructions Limited are proposing to form a joint venture to operate the Karaikal Port through a newly incorporated Port Management Company ("PMC") which will enter into an operation and management contract with KPPL for the period of the Concession awarded by the Government of Puducherry.

Speaking on the occasion, Mr. G R K Reddy, Chairman & Managing Director, MARG Constructions Limited said, "The association with Pembinaan Redzai Sdn Bhd reaffirms our intent to build the Karaikal Port as the finest port on the east coast of India. This port will unleash the potential of Tamil Nadu's hinterland and transform the economic landscape".

Mr. Reddy further added, "With Government of India driving the nation's growth through an export led strategy, this new association presents an enormous range of potential benefits to the MARG group and to our country".

The PRSB official spokesperson said, "We are pleased to be given this opportunity to explore collaboration with MARG Constructions Limited and look forward to working together to develop the Karaikal Port".

About Karaikal Port

Strategically located on the Tamil "� Nadu "� Puducherry coast, 250 kms south of Chennai and 360 kms north of Tuticorin, the Karaikal Port offers excellent road and rail connectivity.

Designed as a lagoon type all-weather-deep-water port, it is being constructed on sprawling 600 acres with extensive warehousing facilities. The port will be equipped to handle all types of cargo (bulk, break-bulk, general, liquid and containers) with a capacity of over 10 million tons per annum. KPPL would cater to the high potential industrial belts of Tamil Nadu and Puducherry, with the major cargoes being textiles, textile machinery, cement, agro-products and chemical fertilizers.

An intelligent port for superior freight handling and movement, KPPL will offer state of the art facilities including multipurpose harbour mobile cranes and handling equipment, contemporary navigational equipment and port management tools. KPPL will have a 16-metre draught and the capacity to handle vessels of up to 1, 00,000 DWT.

KPPL will have on offer the best technology and logistic support in facilitating efficient handling of cargo. Its excellent location, competitive tariff structure and modern port management system will empower economic growth. The first phase of the project involved a capital outlay of Rs 416 crore, of which Rs 302 crore forms the debt component and Rs 114 crore, equity.

About MARG Constructions Limited

MARG Constructions Limited is among India's fastest growing diversified Infrastructure development companies. Established in 1994, MARG Constructions Ltd is listed on the Bombay Stock Exchange, Madras Stock Exchange and the Luxembourg Stock Exchanges (FCCB). The MARG group employs over 250 people.

The company pioneered Infrastructure Development on OMR, Chennai's IT Corridor. MARG's prestigious clientele includes market leaders such as Standard Chartered Bank (Scope International), Tata Consultancy Services, Satyam Computer Services, BHEL, Enercon India and Slash Support Systems. The company's business roadmap encompasses development of SEZs, Ports, Townships, IT Parks, Malls, Serviced Apartments, Hotels, Homes, Resorts, and Roads. For more information, visit, www.MargInfrastructure.com