MIC Electronics IPO opens on April 30, 2007

Mumbai, 25th April, 2007: MIC Electronics Limited, the Hyderabad-based ISO 9000:2000 certified Company, engaged in the design and manufacture of True Colour LED Video Display Systems, is entering the capital market with an Initial Public Offer ("IPO") of 5,100,000 Equity Shares of Rs 10 for cash at a price to be decided through the 100% book-building process for listing on both Bombay Stock Exchange ("BSE") Limited and National Stock Exchange ("NSE") Limited.

The Price Band for the Offer has been fixed between Rs 129 per share and Rs 150 per Equity Share for IPO opening on April 30, 2007, and closing on May 8, 2007. The public offer constitutes 25.34% of the Company's fully diluted post issue paid up equity capital.

Upto 50% of the Issue will be allocated on a proportionate basis to the Qualified Institutional Buyers ("QIBs") of which 5% of the Issue will be available for allocation to Mutual Funds. Further, 15% of the Issue will be available for Non-Institutional Bidders and 35% of the Issue will be available for allocation on a proportionate basis to the Retail Individual Bidders.

Dr. M. V. Ramana Rao, MD, MIC Electronics, said, "The objects of the Issue includes setting up additional facilities for manufacturing LED (Light Emitting Diodes) video modules and acquisition of Infostep Inc., in USA." He added, "MIC has a presence in the LED display market internationally, with a customer base including the advertising agencies, LED rental companies, telecom equipment spenders BSNL and MTNL. MIC is now further strengthening its footprint internationally." The Company has recently secured an order of Rs 1049 mn from BSNL.

MIC Electronics Limited has three divisions "" Media, Info-Tech, Communications and Electronics. It is engaged in the design, development and production of True Colour LED video Display Systems, telecom software solutions and communication equipment such as Digital Loop Carrier on optical fibre including voice, video/data applications, and Hand Held Computers. MIC is the only Company in India to have the "Design-to-Manufacture" capability for the manufacture of LED Video Display Systems.

The current LED display market size is around USD 3.55 bn and is expected to reach USD 3.9 bn by 2007. The LED market has shown a growth rate of CAGR of 15.98% from FY 2004 to FY 2007. LED Video walls sales grew by 8% for FY2005; and recorded 11% growth in FY 2006.

The Indian Out of Home ("OOH") Advertising market is projected to grow to Rs 17.5 bn by 2010 from the current Rs 10.5 bn. Largely, OOH media comprises vinyl base billboards. A majority of LED sales happened in the North American continent which includes Canada and Mexico. The second largest market by sales was Asia followed by Europe, South America and Middle East. In India, the company has a monopoly position in the design and development of true colour large displays for indoor/outdoor/mobile applications, providing true colour motion picture images with its proprietary "Scan+" technology. The other LED products include LED lighting applications with or without solar power and LED / LCD based 3D display systems.

The LED products manufactured by MIC Electronics Limited find various applications including: Sport & Live Events; Advertising covering Electronic Billboard/hoardings, News advertisement ticker displays, Indoor Applications including ones at Shopping Malls, Airports, Railways, Bus Stations and Mobile Applications. Besides this, the Company also provides premier large format display solutions, including indoor LED display, outdoor LED display and Mobile LED Display on a limited period rental basis.

The Company has received national award for R&D efforts in Electronic Industry from the Department of Scientific and Industrial Research (DSIR), Government of India, in 2002. Further, the flagship product LED Video Board has been featured on the website of the Indian Innovators forum.

The Unconsolidated (audited and restated) Total Income, of the Company for the 6 months ended December 31, 2006, was Rs 654.56 million and Net Profit after Tax was Rs 108.91 million. During the year ended June 30, 2006, the Total Income posted was Rs 1,044.12 million while the Net Profit after Tax was Rs 154.76 million. MIC has a confirmed order book of worth Rs 1678.55 million as on December 31, 2006.