Merger of Lanco Global Systems Inc with Lanco Global Systems Ltd

Hyderabad, July 26, 2006

Lanco Global Systems Inc USA (LGSI) has merged with its Indian Counterpart Lanco Global System Ltd (LGSL) as approved by Honorable High Court of Andhra Pradesh on June 30, 2006 under the Scheme of Amalgamation.

Lanco Global Systems Inc (LGSI) is a foreign Company, Incorporated under the Georgia Business Corporation Code, USA in the year 2004 as a “Domestic Profit Corporation” with services around Information technology and Business process outsourcing has been merged with Lanco Global Systems Ltd (LGSL) Headquartered in Hyderabad.

Post merger the present equity of LGSL would increase from Rs10.65 Cr to Rs25.42 Cr. Shareholders of the foreign company would be allotted 2 equity shares of Rs10 each fully paid up of the Indian Company for every 3 Shares of common stock of US$0.10 fully paid up held in the foreign entity.

Post merger benefits would result in increased revenues, economies of scale, profitability, ability to bid for larger projects, increase in customer base, enhanced vertical strategy & sales with overall growth for the combined entity. The company expects to close on a few global projects and with the merger it would further leverage their combined strength in Information Technology.

Arjun Valluri CEO of Lanco Global Systems Ltd (LGSL) announced last year during his take over of the IT wing of LANCO GROUP that it has decided to acquire and merge itself with the US based Lanco Global Systems Inc (LGSI). The Board of Directors had unanimously approved the scheme of arrangement for amalgamation of LGSI with LGSL in a meeting held on 14.12.2005, subsequently followed by the approval of shareholders and high court order passed on 30.06.2006

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