Reliance Energy allots warrants to Promoters

Mumbai, January 21, 2008: Pursuant to the decision taken by the Board of Directors of Reliance Energy Limited at its meeting held on December 2, 2007 and the approval received from its shareholders, Reliance Energy has allotted 4,30,00,000 warrants convertible into equity shares to the promoters of the company, AAA Project Ventures Pvt Ltd. The amount payable towards allotment has already been received by the company.

The highlights of the Issue are :

Reliance Energy has allotted 4.30 crore warrants.

Reliance Energy to raise an amount of about Rs.7,835 crore from this Issue.

Networth of the company goes up from Rs. 10,320 crore to Rs 18,150 crore

The promoters’ equity stake in Reliance Energy, to increase to 44.4% from current 34.7%

The Reliance Energy and its affiliates are engaged in several mega projects under implementation and under consideration, in power generation, transmission, and distribution, as well as infrastructure development in areas such as highways, bridges, metro rail, real estate, etc.

A large number of new mega infrastructure projects are also soon being put to bid, to provide further impetus to the country’s rapidly accelerating economic growth.

Reliance Energy Limited:

Reliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India's leading private sector utility Company.

Reliance Anil Dhirubhai Ambani Group currently has a market capitalisation of about Rs.3,40,000 crore, net worth in excess of Rs.40,000 crore, cash flow of Rs.9,000 crore, net profit of Rs.5,000 crore and zero net debt.

Reliance Energy is ranked amongst India’s top 20 listed private companies in terms of all major financial parameters, including assets, sales, net worth, profits and market capitalisation.

NOTE:
A Group Company of Reliance Energy Limited, Reliance Power Limited has made, an initial public offering of its equity shares and the issue of same is open for subscription from January 15, 2008 to January 18, 2008 and has filed a Red Herring Prospectus (RHP) with the Registrar of Companies, Maharashtra and Securities and Exchange Board of India (SEBI). The RHP is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs and CBRLMS at www.kotak.com,www.ibb.ubs.com/Corporates/indianipo, www.abnamroindia.com, www.db.com/India, www.enam.com,www.icicisecurities.com, www.jmfinancial.com, www.jpmipl.com, www.sbicaps.com and www.macquarie.com/in.

This media release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any potential investors should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to any Red Herring Prospectus that may be filed with the Designated Stock Exchange in future including the section titled “Risk Factors”.

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