Press release

ADLABS ACQUIRES 23 SCREENS IN DELHI / NCR, UP, PUNJAB & HARYANA
~ Move will propel company to leadership in exhibition space by July 2007 ~

Mumbai, 2nd May 2007... Adlabs Films Limited, a member of the Reliance Anil Dhirubhai Ambani Group and the leading entertainment conglomerate in the country, today entered into an agreement with Rave Entertainment to acquire the right to conduct cinema exhibition business at one operational multiplex in Kanpur and six more projects under implementation in NCR, Uttar Pradesh, Punjab and Haryana totaling 23 screens. This acquisition by itself would contribute to an increase in Adlabs’ multiplex presence by five properties (17 screens) within the next four months.

Rave Entertainment Pvt. Ltd., (Rave) owns and operates the popular brand ‘Rave Cinemas’ at Kanpur and has entered into license arrangements for operating cinemas at prominent retail locations in Noida and other centers in UP, Punjab and Haryana. Five of the seven properties are also entitled to entertainment tax exemptions. The license terms between Adlabs and the promoters of Rave are subject to confidentiality provisions.

This licence provides Adlabs quick access to the Delhi-UP territory, which contributes a sizeable 23% to the all-India box-office. Adlabs' current screens stand at 62 and are set to increase substantially during the coming year.

Commenting on the arrangement, Manmohan Shetty, Chairman and Managing Director - Adlabs Films said, “Rave's properties are well managed and the projects under implementation are in carefully chosen strategic locations. Coupled with our own aggressive growth path, we are well on our way to becoming the market leader by July 2007. By end of March 2008, we will have a presence in 70 cities, spread over all significant film territories that contribute over 80% to the domestic box-office collections”.

Vikram Kothari, Director - Rave Entertainment said, “Rave has built a strong franchise in Kanpur and has projects under development in important locations in North India.” Shailesh Gupta, Director - Rave Entertainment added, “Rave will be able to leverage on the synergies of a national player with strong roots in the film industry.”

Ravi Sardana, Senior VP, ICICI Securities Ltd., financial advisors to Rave Entertainment said “The consolidation in the exhibition space and integration with production houses will lead to faster development of the movie business and significant value creation”.

Adlabs recently declared impressive results for the 12-month period ending March 2007. It recorded a total income of Rs. 348 crores (166% growth over previous year), EBIDTA of Rs. 101 crores (100% growth) and net profit of Rs. 73 crores (158% growth).