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Hirco plc announces intention to float on AIM

27 November, 2006

Hirco plc (“Hirco” or the “Company”), today announces its intention to carry out an institutional offering (the “Placing”) of ordinary shares and to have its ordinary shares admitted to trading on the AIM Market of the London Stock Exchange plc (“AIM”). Hirco is a closed-ended investment company, newly incorporated and registered in the Isle of Man. Hirco has been formed to invest in certain foreign direct investment compliant Indian real estate development projects sourced by Niranjan Hiranandani.

Hirco estimates that it will receive gross proceeds of the Placing, before deduction of costs, of approximately £370 million, assuming the over-allotment option is not exercised.

Hirco intends to invest the net proceeds of the Placing in up to five projects identified and sourced by Niranjan Hiranandani, which are developments of large-scale, mixed-use township communities and co-located special economic zones (“SEZs”) in India. Hirco expects it to take approximately six to twelve months from admission to AIM for the net proceeds of the Placing to be fully invested in the projects.

A meeting of the Board of Hirco was held on 24 November 2006 at which the Placing and the admission to AIM were approved in principle.

HSBC Bank plc and Bear, Stearns International Limited have been appointed Joint Global Co-ordinators and Joint Bookrunners. HSBC Bank plc will act as Hirco’s Nominated Advisor.

Further details of the Placing will be announced in due course.

For further information, please contact:

Citigate Dewe Rogerson          
+44 20  7638 9571
Sarah Gestetner
Lindsay Noton

 

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as “expect”, “believe”, “anticipate”, “estimate”, “intend”, “will”, “could”, “may” or “might” the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including risks specifically related to the Company and its operations.

HSBC Bank plc and Bear, Stearns International Limited are each acting for Hirco in connection with the offer and no one else and will not be responsible to anyone other than Hirco for providing the protections afforded to clients of HSBC Bank plc and Bear, Stearns International Limited nor for giving advice in relation to the offer.

Neither this press release nor any copy of it may be taken or transmitted into the United States, Australia, Canada, India or Japan. This press release does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with,
any contract thereof. The offer and the distribution of this press release and other information in connection with the listing and offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This communication is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.

HSBC Bank plc is authorised and regulated by the Financial Services Authority and regulated by the Financial Services Authority for the conduct of UK business, are acting for the Company and no one else in connection with the offer, and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients nor for providing advice in connection with the offer.

Bear, Stearns International Limited is authorised and regulated by the Financial Services Authority and regulated by the Financial Services Authority for the conduct of UK business, are acting for the Company and no one else in connection with the offer, and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients nor for providing advice in connection with the offer.

The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or under the applicable securities laws of Canada, Australia, India, the Republic of Ireland, the Republic of South Africa or Japan, and may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the Securities Act) unless they are registered under the Securities Act and Hirco is registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act"), or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the Investment Company Act and, subject to certain exceptions, may not be offered or sold within Canada, Australia, India, the Republic of Ireland, the Republic of South Africa or Japan or to any national, resident or citizen of Canada, Australia, India, the Republic of Ireland, the Republic of South Africa or Japan. No public offer of securities in Hirco is being made in the United States, Canada, Australia, India or Japan.

These materials are not an offer for sale of any securities of the Company in the United States. Any securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The Company has not registered and does not intend to register any portion of the offering in the United States or to conduct a public offering of any securities in the United States.

This does not constitute a recommendation concerning the offer. The value of shares can go down as well as up. Past performance is not a guide to future performance. Potential investors should consult a professional advisor as to the suitability of any offering for the individual concerned.

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