Unaudited Financial Results for 9M FY 2006 2007*

Ballarpur Industries Limited

Press Release:

Unaudited financial results for 9M FY 2006 – 2007*

Place: New Delhi Date:April 12, 2007

BILT 9M FY 2007 PAT increase 28% to Rs. 1,845 million

BILT 9M FY 2007 PBT increase 33.1% to Rs. 2,388 million

BILT 9M FY 2007 Revenues at Rs 17,829 million

BILT 9M FY 2007 Paper Paper products Revenue increase 20.3% to Rs. 15,339 million

Ballarpur Industries Limited (BILT) today announced its financial and operating results for 9M FY 2007 and Q3 FY 2007.

According to a statement issued by the Company:

“The company’s results in the current quarter have been positive as a result of its performance and firm market conditions. We expect our initiatives in this direction to yield further results in the coming future. The recent acquisition of SarahForest Industries has also given a fillip to BILT’s plans of globally expanding its paper and pulp operations.”

*BILT follows a July 1 – June 30 fiscal year; therefore the current announcement covers the Company’s financial performance for the nine months and third quarter of Fiscal 2007.

BILT (9M FY 2007 v/s 9M FY 2006)

• Paper & Paper products Revenue increase 20.3% to Rs 15,339 million compared with Rs 12,750million. Total Revenue at Rs 17,829 million compared with Rs 15,043million.

• EBIDTA higher by 15% at Rs 4,263 million compared with Rs 3,719 million.

• PBT advances by 33.1% to Rs 2,388 million from Rs 1,795 million.

• PAT higher by 28% at Rs 1,845 million compared with Rs. 1,441million.

• Fully Diluted EPS higher by 28% at Rs 9.74 compared with Rs. 7.61.

• Cash generation from operations (PAT + Depreciation + Deferred Tax Liability+ Amortisation) has increased by 17.7% to Rs 3,337 million from Rs.2,834 million.

BILT (Q3 FY 2007 v/s Q3 FY 2006)

• PaperPaper product Revenue increase 22.8% to Rs 5,215 million compared with Rs 4,245 million. Total Revenue at Rs 6,030 million compared with Rs 5,223million.

• EBIDTA higher by 11.5% at Rs 1,461 million compared with Rs 1,310 million.

• PBT advances by 25.7% to Rs 828 million from Rs 659 million

• PAT higher by 22% at Rs 641 million compared with Rs. 525 million.

• Fully Diluted EPS higher by 20.22% at Rs 3.33 compared with Rs. 2.77.

• Cash generation from operations (PAT + Depreciation + Deferred Tax Liability+ Amortisation) has increased by 12.6 % to Rs 1,140 million from Rs.1012 million.

Operating overview

• Total paper production of 341,933 MT in 9M FY 2007 compared to 295,453MT in 9M FY 2006.

• Total paper production of 112,814 MT in Q3 FY 2007 compared to97,588MT in Q3 FY 2006.

• Total paper sales of 344,154 MT in 9M FY 2007 compared with 295,788MT in 9M FY 2006.

• Total paper sales of 115,055 MT in Q3 FY 2007 compared with 98,065MT in Q3 FY 2006.

• Interest costs at Rs. 644 million during the nine months 9.6% lower than the corresponding period of previous year.

About BILT

Ballarpur Industries Limited (BILT) is India’s largest manufacturer of Writing and Printing Paper with 21% of the W&P market and approximately 53% of the coated paper market. BILT has five paper mills in the states of Orissa (Unit Sewa), Haryana (Unit Shreegopal) and Maharashtra (Unit Ballarpur, Bhigwan and Ashti) together with a capacity of 480,000 tpa and a pulp mill of capacity 100,000 tpa manufacturing rayon grade pulp, in the state of Andhra Pradesh (Unit Kamlapuram). All of the Units (except Ashti) possess captive power generation capacities and, with the exception of Bhigwan & Ashti, also possess captive pulp making capacity. Together, these Units give the company geographic coverage over most of the Indian market. The company has also recently acquired Malaysia’s largest integrated Pulp and Paper mill - SabahForest Industries.

For further information contact:

B Hariharan Sunaina Jairath

Group Director (Finance)Image Inc.

Tel: (0124) 4099 217Tel: (011) 41327970

Fax: (0124) 280 4260Fax: (011) 26840650

e-mail: e-mail:

Mobile: +91 9810097446Mobile: +91 9811645243

Disclaimer:

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of strategic initiatives, potential product characteristics, uses and sales potential are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially. BILT may, from time to time, make additional written and / or oral forward looking statements, including statements contained in the Company's filings with the regulatory bodies and our reports to shareholders. The Company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.