• Exchange rate and other one time non-recurring operating factors had an adverse impact on the quarter performance
• Strong performance of PV business with shipments over 25.4 MW along with this, the domestic PV market is on the verge of explosion

New Delhi, August 12, 2010: Moser Baer India Limited (MBIL) today released its financial results for the first quarter of FY 2010-11. The company’s Board of Directors, at its meeting in New Delhi, approved the financial results for the quarter ended June 30, 2010.

Highlights include:

• Quarter performance impacted due to one time non recurring operating factors to the tune of Rs 76 Crores
• PV business order book surges beyond Rs 1200 crores mark substantial business visibility for the next 2 -3 years
• Moser Baer emerges as the largest multi-technology PV player in India Crystalline Silicon (c-Si) and Thin Film PV plants operating at full capacity
• 100 MW of c-Si cell and module expansion to be operational by year end
• EPC business emerges as the leading player in the Indian solar market, gearing to execute projects totalling 200 MW in the next 12 months
• Blu Ray disc achieves significant global traction, shipments grew 10 times YoY

Commenting on the company&rsquos growth strategy, Deepak Puri, Chairman & Managing Director, MBIL, said: &ldquoWe are at the threshold of the renewable energy revolution. It will completely transform our economic and social systems. Our strategy is to leverage our global expertise and capabilities to capture around 35 % of the domestic demand emanating out of the National Solar Mission.&rdquo He added: &ldquoThe National Solar Mission will help accelerate our process to emerge as India&rsquos first Giga Watt player.&rdquo

Yogesh Mathur, Group Chief Financial Officer, MBIL said: &ldquoThe past quarter performance has been impacted by summer slackness and one time non recurring operating factors. Firstly, the price of Poly Carbonate spiked unexpectedly in early part of the quarter and could not be passed on to the customers. Secondly, a drop in exchange rate realisation from USD to INR and EURO to USD resulted in lower realisation against significant sales which has affected the bottom line.&rdquo He added: &ldquoThe Company is likely to save a significant amount on account of its power saving programmes including fuel conversion to Natural Gas, carbon credit and power consumption optimization. Our adoption of green fuel will help us become globally more competitive by addressing cost volatility and reducing fuel risk in addition to environment benefits.&rdquo

Optical Media

The EBITDA margin of Optical Storage Media was impacted due to one-time non recurring operating factors firstly, foreign exchange movement (USD v/s INR and Euro v/s USD) resulted in lower realization and secondly, unexpected spike in Poly Carbonate prices between March 2010 and May 2010 affected the margins as the differential costs could not be passed on to the customers. There was an additional NRV impact on the inventory.

During the quarter, the shipments of Blu Ray were 10 fold compared to the same quarter of the previous year. Aggressive capacity expansion of Blu Ray facility will help the company capture significant share of the global market, which is likely to grow by 30% by the end of FY’11.

Flash media market in India is expanding rapidly and the company is likely to capture 20% market share by the end of FY’11.

A significant savings is also expected on account of the company’s power cost saving programmes including fuel conversion to Natural Gas, carbon credits and power consumption optimization. There is an estimated annual savings potential of approx. Rs 70 crores

Solar photovoltaic

India is expected to achieve 1,400-1,500 MW of solar installations by 2012-13 under the &lsquoJawaharlal Nehru National Solar Mission&rsquo and various &lsquoState Government Initiatives&rsquo. The Government has announced policies and guidelines for rapid development in the solar energy space with strong focus on domestic manufacturing of solar equipment. The implementation guidelines for &lsquoRooftop PV and Small Solar Generation Programme&rsquo (RPSSGP) and &lsquoOff-grid and Decentralised Solar Applications&rsquo under Phase 1 of National Solar Mission were released in June 2010 and Guidelines on Selection of &lsquoNew Grid Connected Solar Power Projects&rsquo were released in July 2010. Use of domestically manufactured modules has been made mandatory under RPSSGP. Moreover, under the guidelines for &ldquoNew Grid Connected Solar Power Projects&rdquo domestic content has been made mandatory for projects based on &lsquoCrystalline Silicon&rsquo technology in the first batch (FY&rsquo11). This would be applicable for &lsquocells and modules&rsquo for all Projects in the second batch (FY&rsquo12) under grid connected applications. These initiatives will promote the Indian solar equipment manufacturers and will encourage the domestic players to enhance their capacities.

States like Rajasthan and Gujarat have already established a clear policy and guidelines on the procedures for setting up solar power projects. The Gujarat state government has already signed power purchase projects for approx. 420MW.

Moser Baer is uniquely positioned and expanding to capture the huge Indian opportunity with its strong EPC capability, wide experience, multiple benchmark projects and unique product offering in the form of Thin Film panels.

The PV subsidiary had strong shipments in the third consecutive quarter. 25.4 MW shipments were achieved during the quarter (including shipments for the Tamil Nadu Project). Financing lines have been established for the 100MW Silicon Cell and Module Line and financial closure is expected shortly. The Thin Film plant has been operating at benchmark efficiency.

The strong EPC capability - &lsquoconcept to commissioning&rsquo, of the company has helped it commission over 50 solar projects already. Today the EPC unit of the company is the leading player in India with projects totaling over 200Mw to be executed.

Entertainment

• Firm EBIDTA position in Q1 FY 10-11
• Launched 10 Blu Ray titles in the quarter
• Strong retail roll-out continues during the quarter: 5000 focused retail outlets
• Company is targeting top end of the market thus focus on value added premium products with high quality which is expected to lead to higher realizations and better margins

About MBIL:
Established in 1983, Moser Baer India (MBI) is a globally, diversified technology group. With its manufacturing expertise and extensive R&D base, the Group has successfully diversified in areas like Blank Optical Media, Solar Photovoltaic, Home Entertainment and IT Peripherals & Consumer Electronics. The company has successfully developed cutting edge technologies to become one of the world’s largest manufacturers of Optical Storage Media like CDs and DVDs. MBI is the first to market the Blu-Ray discs in India the next-generation storage formats. In recent years the company has entered into exciting areas of home entertainment and consumer products and is set to lead the technology curve in tapping renewable energy resources in the high growth photovoltaic space. Over the years, MBI has emerged as one of the most credible brands focussed on hi-tech manufacturing and R & D activities.  It is continuing to unfold the next generation innovative technologies that will catapult India into a respectable manufacturing hub.

Website: www.moserbaer.com

Moser Baer's Unaudited Standalone Financial Results for the quarter ended
June 30, 2010

(Rs. in lacs)

Particulars	Quarter ended 30.06.2010	Corresponding Quarter ended 30.06.2009	Previous Accounting Year ended 31.03.2010
	(Unaudited)	(Unaudited)	(Audited)
a. Net Sales / Income from Operations	44,686	47,210	205,749
b. Other Operating Income	1,026	8,256	20,320
Net Sales / Income from Operations	45,712	55,466	226,069
Expenditure
a. (Increase)/Decrease in stock in trade and work in progress	(3,497)	(3,312)	(1,306)
b. Consumption of raw materials	25,976	21,437	94,772
c. Purchase of traded goods/ rights	1,017	2,869	8,671
d. Employees cost	5,814	5,807	22,648
e. Depreciation/Amortisation	9,757	12,915	49,189
f. Other expenditure	12,016	11,947	41,329
g.Total	51,083	51,663	215,303
Profit (+)/ Loss (-) from Operations before other Income Interest and Exceptional Items	(5,371)	3,803	10,766
Other Income	1,187	874	2,649
Profit (+)/ Loss (-) before Interest and Exceptional Items (3+4)	(4,184)	4,677	13,415
Interest	4,600	4,853	18,683
Profit (+)/ Loss (-) after Interest but before Exceptional Items (5-6)	(8,784)	(176)	(5,268)
Exceptional items	-	452	882
Profit (+)/ Loss (-) before tax (7+8)	(8,784)	276	(4,386)
Tax expense	-	-	(765)
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10)	(8,784)	276	(3,621)
Extraordinary Item (net of tax expense)	-	-	-
Net Profit (+)/ Loss (-) for the period (11-12)	(8,784)	276	(3,621)
Paid-up equity share capital	16,831	16,831	16,831
(Face value:Rs.10/- per share)
Reserves excluding revaluation reserves as per balance sheet of previous accounting year			152,371
Earnings Per Share: (not annualised)
a) Before Extraordinary items
- Basic (Rs.)	(5.22)	0.16	(2.15)
- Diluted (Rs.)	(5.22)	0.16	(2.15)
b) After Extraordinary items
- Basic (Rs.)	(5.22)	0.16	(2.15)
- Diluted (Rs.)	(5.22)	0.16	(2.15)
Public shareholding
- Number of shares	140,885,963	140,885,963	140,885,963
- Percentage of shareholding	83.71	83.71	83.71
Promoters and promoter group shareholding
a) Pledged/Encumbered	3,379,626	3,379,626	3,379,626
- Number of shares
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	12.33	12.33	12.33
- Percentage of shares (as a% of the total share capital of the company)	2.01	2.01	2.01
b) Non encumbered shares	24,040,515	24,040,515	24,040,515
- Number of shares
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	87.67	87.67	87.67
- Percentage of shares (as a% of the total share capital of the company)	14.28	14.28	14.28

Notes:

1. The company is primarily in the business of manufacture and sale of Optical Storage Media. The other activities of the company comprise, replication of content, sales of consumer electronic products and operation and maintenance of sector specific Special Economic Zone for non-conventional energy. The segment revenues, results and assets of the other activities do not constitute reportable segments under AS-17 and accordingly no disclosure is required.
2. There were no outstanding complaints from the shareholders at the beginning of the quarter and 3 complaints received from the shareholders during the quarter have been replied to satisfactorily.
3. Current quarter results have been adversly impacted by exchange fluctuation and increase in input costs.
4. During the quarter, the Company subscribed to a step down subsidiary Moser Baer Photovoltaic, Inc in USA.
5. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 12,2010.
6. Figures of the previous period/ year have been regrouped and rearranged wherever necessary.
7. Limited Review: The Limited review by the Statutory Auditors for the quarter as required under clause 41 of the Listing Agreement has been completed and the related report is being forwarded to the Stock Exchanges. The report does not have any impact on the above Results and Notes which need to be explained.

For and on behalf of the Board of Directors of 
Moser Baer India Limited