INOX Leisure Ltd. Records 105 % YoY Increase in Net Profit for Q1 2006-07

· 80 % YOY growth in revenues for Q1’06-07 at Rs. 40.53 crores versus Rs. 22.57 crores in the same quarter of the previous year.

· EBITDA for Q1 is at Rs. 13.56 crores compared with Rs. 9.16 crores in the same quarter of previous year, a growth of 48 %

· PAT has increased to Rs 8.37 crores versus Rs. 4.08 crores in Q1’06, a growth of 105 %

Mumbai, 28 July 2006: The Board of Directors of INOX Leisure Ltd. announced its results for the first quarter of the financial year 2006-2007, following its meeting on Friday, 28 July 2006 in Mumbai. For the quarter ended 30 th June 2006, INOX reported an EBITDA of Rs. 13.56 crores compared to Rs. 9.16 crores in the same quarter of the previous year, a growth of 48 %.

The profit after tax for the quarter ended 30th June 2006 amounted to Rs. 8.37 crores, as compared to Rs. 4.08 crores in the corresponding quarter of the previous year – an increase of 105 %.

INOX has achieved significant milestones this quarter with the launch of 2 new properties INOX Darjeeling and INOX Kota; taking its tally up to 41 screens in 11 multiplexes across 10 cities. In June INOX also entered into a term sheet for an all share swap deal with Calcutta Cinema Private Limited (CCPL) for acquiring CCPL & its brand of multiplexes – ’89 Cinemas’ and merging its operations with INOX Leisure Limited. The agreement with CCPL will take INOX’s tally of multiplexes in West Bengal & Assam up to 13 over the next two years.

Additionally, by mid 2008, INOX will take its screen count up to 108 screens, across 26 multiplexes in 18 cities. INOX Nagpur with 3 screens and INOX Chennai with 5 screens, are scheduled to open in August & September 2006 respectively.

Commenting on the results, Mr. Deepak Asher, Director – INOX Leisure Ltd. said, “Our sustained growth and profitability in an environment of increasing competition reflects the strength of the INOX brand. We remain focused on our mission of creating India’s largest network of world class multiplex cinema theatres across all the leading towns and cities of India.”

INOX has also entered into an alliance with the Pantaloon Group, which provides it with preferential access to all real estate developments that the Pantaloon Group is associated with, either for its own growth plans, or through real estate funds being managed by the Pantaloon Group. The properties acquired through this alliance will be in addition to the properties that INOX has locked in on its own, thus exponentially increasing its reach across India

About INOX Leisure Ltd.

INOX has a nation wide presence with 11 operational multiplexes, a total of 41 screens, across 10 cities – Mumbai, Pune, Vadodara, Goa, Kolkata (2 multiplexes), Bangalore, Indore, Jaipur, Darjeeling & Kota. INOX, in the six years of its existence, has emerged as one of the fastest growing multiplex chains in the country. INOX was awarded the ‘Best Entertainment Retailer’ at the ICICI Retail Excellence Awards, 2005 and now plans to expand its network with new multiplexes in Hyderabad, Chennai, Jodhpur, Lucknow, Raipur, Kolkata and Bangalore.

For further information, please contact:

Snehhal Chitneni

GM – Corporate Communications

INOX Leisure Ltd.

Ph: 9322091010