PRESS RELEASE

Parsvnath Developers Ltd on February 20, 2008 announced a joint venture between its subsidiary, Parsvnath Hotels Ltd (PHL) and Royal Orchid Hotels Ltd (ROHL), one of India’s fastest growing hospitality Companies, to develop and manage hotels across country.

PHL and ROHL have signed an agreement to form a joint venture where PHL will hold the majority stake of 70% with ROHL 30%. Royal Orchid Hotels will manage the hotels and the Joint Venture Company will own and develop these projects. The Joint Venture Company will operate under the name of “Parsvnath Royal Orchid Hotels”.

Under the agreement, Parsvnath Royal Orchid Hotels proposes to develop 10 hotel projects in next five years across India, categorized into four 5-star, four 4-star and two 3-star hotels, resorts and serviced apartments. The construction on these hotels would involve an investment of over Rs 500 crores spread over the period of three to five years.

There would be at least 1000 rooms would be built under this Joint Venture.