SREE SAKTHI PAPER MILLS LIMITED

Regd.Office :57/2993, " SREE KAILAS", Paliam Road, Earnakulam, Cochin - 682 016
Tel No: (0484) 2373230, Fax No. (0484) 2370395,E-mail:sreesakthi@eth.net, sspml_m@vsnl.net 
Compliance Officer : Mr. R. Ponnabalam

PUBLIC ISSUE OF 83,33,340 EQUITY SHARES OF RS.10/- EACH AT A PREMIUM OF RS.20/- PER SHARE (I.E. AT A PRICE OF RS.30/- PER SHARE) AGGREGATING TO RS.2500.00 LACS.
THE ISSUE PRICE OF RS.30/- PER EQUITY SHARE IS SIX (3) TIMES THE FACE VALUE.

BASIS OF ALLOTMENT

The Board of Directors of Sree Sakthi Paper Mills Ltd. ("The Company') wish to thank all the investors for their overwhelming response to the Public Issue. The basis of allotment has been finalized in consultation with Bombay Stock Exchange Ltd. (BSE) on 10/02/2006 and the equity shares have been allotted as per details given below:

Public Issue opened on Tuesday, 17/01/2006 and closed on Saturday, 21/01/2006.

Allotments have been made on the proportionate basis amongst all categories, rounded off to the nearest integer subject to a minimum of 200 shares per allottee in case of public and NRI/ FII categories and 3500 shares per allottee in case of Banks/ Mutual Funds/FIs.

Basis of allotment of equity shares to the Resident Indian Public Category is as follows:

The dispatch of refund orders and a allotment letters has been completed as on 14/02/2006. The credit in respect of allotment in dematerialized form in Central Depository Services India Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) to the valid beneficiary account has been completed as on 14/02/2006.

The company has already made the listing application to the BSE and other formalities regarding listing of equity shares are in the process of completion.

All futures correspondence in this regard may kindly be addressed to the Registrar to the Issue, whose address is furnished below, quoting full name of the first/sole applicant, application number, number of shares applied and Bank/branch where the application has been lodged.