House of Pearl Fashions Ltd filed its Draft Red Herring Prospectus (DRHP)
New Delhi, October 10, 2006

House Of Pearl Fashions Ltd (“HoP Fashions” or the “Company”) filed its Draft Red Herring Prospectus (DRHP) on October 10, 2006 with the Securities & Exchange Board of India for its Initial Public Offering (“IPO”) of equity shares. HoP Fashions is a multinational, ready-to-wear apparel company operating in three distinct business streams: manufacturing, marketing & distribution and sourcing of garments.

The company proposes to offer 6,120,600 equity shares of Rs 10 each for cash at a price to be determined through the 100% book-building process, comprising a fresh issue of 4,895,400 equity shares by the company and an offer for sale of 1,225,200 equity shares by the promoters. There will be a reservation for Indian employees of 122,600 equity shares of Rs 10 each. There will also be a green shoe option of 6,12,060 equity shares of Rs 10 each. The equity shares are proposed to be listed on the National Stock Exchange and Bombay Stock Exchange. At least 50% of the net offer to the public shall be allocated on proportionate basis to Qualified Institutional Buyers (QIBs) and 15% of the offer is reserved for non-institutional investors. 35% of the offer is reserved for retail investors.

JM Morgan Stanley Private Limited is the sole Book Running Lead Manager for the IPO.

About House of Pearl Fashions Ltd
HoP Fashions is a multinational, ready-to-wear apparel company operating in three distinct business streams: manufacturing, marketing and distributions and sourcing of garments. HoP Fashions operates ten modern ready-to-wear apparel manufacturing facilities, of which six are located in North India, one in South India, two in Bangladesh and one in Indonesia. HoP Fashions manufactures a broad range of products comprising of knits, woven sweaters and bottoms in basic as well as complex designs. The company has marketing and distributions offices in the UK, the US and Hong Kong which oversee marketing and merchandising teams across Canada, Europe, Hong Kong, the UK and US that interact with customers at their locations. The company also owns warehousing and processing units in the UK and the US. HoP Fashions also has a sourcing business in Hong Kong with offices in China, Bangladesh and India. The company has fabric development centers in China and India as well design and product development teams in the UK, the US, India and Hong Kong.

As of June 30, 2006, HoP Fashions employed approximately 6,496 full time employees on wholetime and contractual basis, of which 4,193 were based outside India.

“This press release is not an offer of securities for sale in the United States and the company’s equity shares may not be offered or sold in the United States”