India Globalization Capital Subsidiary Awarded $4.2M Housing Complex Construction Contract by Vijay Engineering

Monday July 7, 10:55 am ET

Company increases backlog of orders from $362M to approximately $366M

BETHESDA, Md., July 7 /PRNewswire-FirstCall/ -- India Globalization Capital, Inc. (Amex: IGC - News), a company developing infrastructure in India, announced that its subsidiary, Sricon Infrastructure, was awarded a $4.2 million contract by Vijay Engineering for civil engineering and construction of a housing complex in the city of Kalburgi (Gulbarga) for Rajashree Cements, part of the multi-national corporation Aditya-Birla Group.

The contract will commence in September-2008 and continue for a period of eighteen (18) months. This latest contract increases India Globalization Capital's backlog of orders to approximately $366 million.

Kalburgi, where the housing complex is being built, is located a few hundred kilometers north of Bangalore in the Indian state of Karnataka. Karnataka is well known as a large public sector manufacturing hub and as an IT (Information Technology) hub of India. Karnataka has been listed among the fastest growing Indian states over the past decade in terms of GDP and per capita GDP, and currently places third for Foreign Direct Investment (FDI) among Indian states.

"We have a simple business model; create shareholder value by aggressively pursuing new contracts and growing our backlog," said Ram Mukunda, CEO of IGC. "With the Indian government articulating a plan to modernize India's infrastructure, we are well positioned for rapid and sustainable growth and to meet our business objectives."

He added, "Currently, we are pursuing also around $343 million worth of additional contracts, which, if we are successful in winning, will help us grow significantly."

About IGC

Based in Bethesda, Maryland, IGC operates through two infrastructure companies in India: Sricon Infrastructure Private Limited ("Sricon") and Techni Bharathi, Limited ("TBL"). IGC owns sixty-three percent of Sricon and seventy-seven percent of TBL. IGC has three core competencies: 1) Highway and other heavy construction, 2) Mining & quarrying and 3) Civil construction and engineering of high temperature plants. The Company's medium term plans are to expand each of these lines of business.

Most of IGC's operations are based in India. The company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form S-3 and IGC's other filings with the SEC containing information about IGC, our Indian operations and other relevant documents, are available at no charge at the SEC's Internet site (http://www.sec.gov). For more information about IGC, visit the company's web site at http://www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully win new contracts, execute on contracts and business plan, (ii) our ability to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes in the exchange rate between the US dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward looking statements have been discussed in greater detail in the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

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