PRESS RELEASE

BAG Films Ltd has informed BSE that the members at the Annual General Meeting (AGM) of the Company held on September 20, 2006, inter alia, have accorded to the following:

1. Adoption of the Audited Annual Accounts as on March 31, 2006 together with Auditor’s Report thereon.

2. Declaration a final dividend of 10% on the paid up equity share capital of the Company.

3. Re-appointment of Mr Rajiv Shukla & Mr Rajeev Shankar, as Directors of the Company.

4. Re-appointment of M/s Joy Mukherjee & Associates, Chartered Accountants, Luknow, as Auditors of the Company to hold office till the conclusion of next Annual General Meeting of the Company, on remuneration, terms & conditions.

5. Appointment of Mr Nalin Satykam Kohli & Dr Anuradha Mishra as Directors of the Company, liable to retire by rotation.

6. Delisting of securities from Delhi Stock Exchange Association Ltd.