Gati Ltd has announced the following Press Release:

“Gati is a pioneer and leader in the Express Distribution and Supply Chain Solutions in India. It was the revolutionary approach adopted by Gati that helped launch many path breaking initiatives in the logistics segment and many were the firsts for the Indian market. In a span of 18 years, Gati has consistently explored various ways to bring premium value to the customer. Always setting benchmarks in quality of service and customer satisfaction.

Gati has over 4000 vehicles on road covering 594 out of 608 districts, a fleet of cargo planes criss crossing India, mechantronic warehousing facilities of 1.5 million sq. ft. across all major cities thus offering truly word class single window solutions to the customers.

Be it flexible point-to-point distribution solutions or complex end-to-end integrated logistics solutions or supply chain management, Gati does it all with great effectiveness and reliability, and enjoys the trust of a large customer base.

In 1996, Gati tied up with Indian Airlines to facilitate speedier delivery of shipment. This twelve-year relationship has now been further strengthened with the launch of the co-branded (Air India Gati) air cargo and courier service. This lethal combination will demonstrate the value the customers can derive from the synergies of the two majors in air and surface networks.

The Gati advantage of seamless connectivity across air, road, ocean and rail has resulted in a plethora of offerings to the customer unmatched in the industry. Besides having a strong network in India, Gati has a strong market presence in the Asia Pacific region and SAARC countries. Today, Gati has offices in China, Singapore, Japan, Dubai, Hong Kong, Thailand, Nepal and Sri Lanka and have plans to foray into other markets.

Gati was the first to run the millenium parcel express train in October 2001 between Mumbai and Kolkata with 10 VPUs. Unfortunately in the year 2003, this initiative was discontinued. Once again Gati has taken the initiative to run the parcel express train between KYN (Mumbai) and NGC (Guwahati). The parcel train is a classic example of PPP (Public Private Partnership).

For the quarter ended, March 31, 2008, Gati’s earnings before Interest, Depreciation and Tax (EBIDTA), is Rs 11.66 crore compared to Rs 13.22 crore of the corresponding quarter of the previous year.

Revenues was at Rs 146 crore for the quarter ended March 2008, as compared to the corresponding quarter of the previous year at Rs 115 crore indicating a growth of 27%.

Mr. Mahendra Agarwal, Managing Director and CEO, Gati Ltd said “We are confident and buoyant about our gameplan which has been rolled out, and the effectiveness of the plan is already evident in the changes the product mix has shown over the last three quarters. It is seen that the growth is skewed towards Air Express, SCM and international business. However, our cash cow continues to be our core business - Surface Express. There is a renewed focus on the new business segments. Infrastructure, Manpower, Business Processes and Practices are in place to present healthy turnover in the next quarter.

Gati’s strategic alliance with General Logistics Systems (GLS) will give an entry into promising market like Europe. This will result in a 10% increase in sales over the current 5% in the international business thus doubling the share of business in the market. India has seen a growth in trade at a much higher pace than the rest of the world, as European Union with its 36 countries has emerged as a serious player investing in India. Over the next five years, Europe will emerge as the second largest trade partner for India after Asia Pacific. With the current 55 Billion USD trade between India and Europe, Gati’s presence in this market will only further strengthen the India Centric vision.

Gati will continue in its quest to meet business needs of today’s businesses, redefining connectivity to match the needs of the discerning customer, added Mr. Mahendra Agarwal, Managing Director & CEO of Gati Ltd.“