Bihar Tubes Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 27, 2008, inter alia, has:

1. Approved the proposal to acquire 100% equity of Shri. Lakshmi Metal Udhyog Ltd, Bangalore from its existing shareholders through share swap deal on agreed swap ratio 1 [one] : 3 [Three] i.e. Bihar Tubes Ltd shall issue 1 (one) Equity Share of Rs 10/- (Rupees Ten) each in exchange of 3 (three) Equity shares of Rs 10/- (Rupees Ten) each of Shri. Lakshmi Metal Udhyog Ltd subject to all statutory approvals from shareholders and other regulatory bodies.

2. Resolved to convene an Extra Ordinary General Meeting of members of the Company on March 24, 2008 to obtain the necessary approvals of the Members of the Company for the said proposal; namely for

(a) purchase of up to 100% of the ordinary shares of Shri. Lakshmi Metal Udhyog Ltd by the issue of new shares.

(b) issue of 17,98,333 equity shares of Rs 10/- each of the Company to the existing shareholders of Shri. Lakshmi Metal Udhyog Ltd on Preferential basis.