The ISMT Ltd ("ISMT") has, through its subsidiaries and affiliates, acquired a 100% stake in Structo Hydraulics AB ("Structo"), one of the largest and most well renowned manufacturer of tubular components for the hydraulic cylinder industry. These are downstream products made from seamless tubes manufactured by ISMT.

Structo Hydraulics AB's factory is located at Storfors in Sweden and the company has an extensive marketing network throughout Europe. The company has an annual turnover of SEK 450 million (Rs. 300 crores) and is an established supplier to many multinationals particularly those in the construction and agricultural equipment industry.

This acquisition brings ISMT one-step closer to its strategic objective of becoming the largest producer of Tubes and Tubular Components for Hydraulic Cylinders in Europe and Asia. In addition, it provides ISMT quick access to the growing demand for Hydraulic Cylinder Tubes and Components within India and China. The two companies have already chalked out a plan to expand manufacturing operations to India and subsequently to China in an effort to support Structo customers in those countries and in the neighboring regions. Many of Structo's customers in Europe already have factories in India and China.

Structo's marketing network in Europe will also be utilized to market other ISMT products in Europe. Structo's market positioning in Europe will be strengthened as a result of access to a captive raw material base through ISMT.

In the near term ISMT expects that this acquisition will create a captive market of roughly 100,000 tones per annum of high value seamless tubes.

Following this acquisition ISMT will be introducing Structo's product line in India thereby offering Indian customers a full range Cold drawn tubes, Skived and Roller-burnished tubes and Components for Hydraulic Cylinders.

ISMT's strategy is to provide customers in India, namely manufacturers of Hydraulic Cylinders, a line of value added products that reduces their manufacturing costs, improves their delivery times and thereby increases their throughput.

ISMT Ltd. is a leading global producer of Precision Seamless tubes and Alloy Steels. The company operates three manufacturing plants based in India and supplies precision seamless tubes and steel to the Bearing, Automotive, Mining, OCTG and Energy (Pressure and Boiler tubes) industries worldwide. ISMT is currently in the process of increasing its Steel Making capacity from 250,000 MT per annum to 500,000 MT per annum and its seamless tube making capacity from 150,000 MT per annum to 450,000 MT per annum. For more information on ISMT please refer to its website at www.ismt.co.in or contact Rakesh Duda at Rduda@ismt.co.in

Structo Hydraulics AB, with a production facility in Storfors in Sweden, is among Europe's leading suppliers of tubes and engineering products for the hydraulic cylinder industry. Structo Hydraulics AB has more than 400 years experience in the field of iron and steel processing.

Structo's product range includes cold drawn seamless tubes, cold drawn welded tubes, roller burnished cylinder tubes, cold formed tubes and components. The product selection covers a wide and comprehensive range of dimensions. Structo Hydraulics AB also offers also technical support, customized solutions and logistics system for integrated manufacturing. For more information on Structo Hydraulics AB please refer to www.structo.se or contact Mr. Kaj Hagman at Kaj.hagman@structo.se