Kinetic Motor Company Ltd, the pioneer and leading manufacturer of Automatic Scooters in India, at their board meeting held on Oct 11, 2005, proposed the issue of 14, 18,000 equity shares of the company to M/s Bennet, Coleman & Co Ltd, Mumbai, the publishers of The Economic Times and The Times of India, among other publications, on a preferential basis as per the SEBI guidelines for preferential issues. These equity shares shall be issued subject to the approval of the shareholders of the company at the Extraordinary General Meeting to be held on November 9, 2005. The shares to be issued would constitute around 8.6% of the company’s post equity issue.

Commenting on the proposal, Ms Sulajja Firodia Motwani, Director of the company said,” We are very pleased that the Bennet Coleman and Co. has identified Kinetic as a company with high growth potential and strong brand values and has chosen to invest in our company. The Company is planning to launch a slew of new two wheelers, including the revolutionary range of Italian scooters, that reflects the changing consumer tastes and preferences, which would involve widespread brand building. The proceeds of the proposed issue would be utilized towards the brand building exercise. “

For additional information contact:
Ms. Vismaya Firodia Bakshi
Head, Corporate Communications Mobile: 98703 24052