Sadbhav Infrastructure Project Limited (SIPL) Secures INR 400 Crores

Mumbai, I9th August, 2010: Sadbhav Infrastructure Project Limited (SIPL), a wholly owned subsidiary of <http://www.sadbhaveng.com/> Sadbhav Engineering Limited (Sadbhav), today announced that it has entered into a binding agreement to receive INR 400 crores from <http://www.nvp.com/> Norwest Venture Partners (NVP) and The Xander Group Inc. (Xander). SIPL will use the new capital to continue to fund its existing road development projects in India and bid for new road development projects under various national and state highway development programs, as well as other infrastructure development projects.

Sadbhav Engineering Limited (Sadbhav) is one of the leading companies in India engaged in engineering, construction and development of infrastructure projects. Sadbhav is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), and has a strong expertise in the execution of roads and highway projects, bridges, irrigation and mining operations. The company has constructed more than 1,200 km of equivalent four lane highways, and 785 kms are under construction at various stages. SIPL is Sadbhav's holding company for all of its infrastructure development projects, including nine projects (with total project cost of more than INR 7,800 crores) presently held directly by Sadbhav. Upon completion of transfer of these nine projects from Sadbhav to SIPL, SIPL will have strong credentials to bid for additional large infrastructure projects.

Commented Vishnubhai Patel, Chairman of Sadbhav and SIPL: "This substantial investment from leading global investors is a testament to the progress our company has made to date and the significant opportunities we continue to see in the rapidly growing road sector, which currently dominates the transport sector in India with a 4.5% share of GDP. Based on our deep construction expertise and successful execution track record on projects to date, SIPL is well-positioned to win new projects that are being awarded now and in the years to come. We look forward to working closely with our new investors to grow our infrastructure business and continue to execute a considerable number of impactful projects across India."

Added Sohil Chand, Managing Director at NVP India: "We are delighted to invest in SIPL and believe that this company will be one of the leaders in the Indian infrastructure space under the inspirational leadership of Vishnubhai Patel. The opportunity in the roads sector is immense and we believe that the progressive road development policies of the Government will create strong growth in this sector over the next 10+ years. SIPL is well positioned to tap this opportunity because of Sadbhav's heritage as a road contractor, its focus on quality and cost efficiency and its experienced management team. Sadbhav has a stellar track record of successfully completing road projects while maintaining the highest quality standards. In addition, the company's diverse asset portfolio is extremely attractive and unique. We are excited to work with such a talented and experienced team and invest in another fast growing, late stage company that is making a tremendous impact on the Indian economy."

Added Sid Yog, Managing Partner of The Xander Group: "An investment of approximately 75 billion USD is expected in the road sector in India over the next four to five years, with an immediate opportunity of 5 billion USD being invested in the next six to 12 months to upgrade and strengthen existing highways across the country. This represents a tremendous growth opportunity for SIPL as it already has an attractive asset portfolio, and is well-poised to win new projects under the National Highway Development Program (NHDP) and other State Road Development Programs. We look forward to working with the SIPL team and helping accelerate the growth of the company's infrastructure assets across India."

YES Bank Limited acted as the sole strategic and financial advisor to SIPL and Sadbhav for this transaction, while Wadia Ghandy acted as the sole legal advisor. Shearman & Sterling and J. Sagar Associates were the joint legal advisors for NVP and Xander.