Accel Frontline clarifies on news item regarding acquisition

With reference to the news item appearing in the leading financial daily titled "Accel close to acquiring Chennai Co", Accel Frontline Ltd has clarified as under:

1. The said press meet was for declaring the Company's financial results for the quarter ended September 30, 2006.

2. At the meet a Correspondent enquired from the Company's Chairman & CEO, the progress made on the acquisition of a Chennai based IT services company, to which reference had been made in RHP under the Head "object of the Issue", wherein it had been stated that "the Company was in discussions with a Chennai Based Software Services Company". In response to the said query, it was mentioned that negotiations had progressed substantially. It was also pointed out that no Agreement or formal understanding had been reached with regard to the said acquisition till date.

3. A query was also raised regarding the disclosure made in the RHL on the "Expansion of our Middle East operations". In response to this, it was pointed out that the Company believed that the Gulf Market had enormous potential and to tap the said market, the Company is exploring the possibility of picking up a stake in the Bahrain based Company, which would provide the Company a Gateway to the Gulf Market, needless to mention that even here, no Agreement or any formal understanding has been reached and the discussions are at a very nascent stage.

Source : Equity Bulls

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