Stone India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 25, 2008, inter alia, has transacted the following:

1. Recommend Dividend @ 12.5% i.e. Rs 1.25 per equity share for the year 2006-07 and Dividend @ 12.5% i.e. Rs 1.25 per equity share for the year 2007-08, subject to the approval of the members at the ensuing Annual General Meeting.

2. Recommended issue of fully convertible warrants with an option to subscribe for one equity share of the Company against each warrant on private placement basis to promoters / promoter group and other investors, at a price to be determined on the relevant date in accordance with the “Guidelines for Preferential Issue” issued by SEBI under the SEBI (Disclosure and Investor Protection) Guidelines, 2000, subject to the approval by the members at the next Annual General Meeting and such other approvals as may be required.