Sical Logistics Ltd, (BSE: 520086 NSE: SICAL Reuters: SICA.BO Bloomberg: SIC@IN) India’s leading provider of integrated multi-modal logistics solutions for bulk and containerized cargo and offshore logistics, has signed an agreement to raise USD 26 million from Old Lane Mauritius IV Ltd, a vehicle of Old Lane India Opportunities Funds (“Old Lane”). A new subsidiary called Sical Infra Assets has been formed. The investment by Old Lane in Sical Infra Assets will help to fund the growing infrastructure business of the company.

Sical Infra Assets was formed to house the company’s asset-heavy, capital-intensive, longer gestation infrastructure based business like the Multimodal logistics hubs at Nagpur, Sical Iron Ore Terminal at Ennore, Container Rail Project, the Container terminals along with PSA Singapore at Tuticorin and Chennai as well as Sical Distriparks. The decision to segregate the short cycle service oriented businesses from the longer duration BOT type assets was to crystallize the value of investments made by Sical into its SPVs. The approval to dilute the equity holding of Sical Infra Assets was obtained from the Board on 2nd August’07.

Ashwin C Muthiah, Chairman, Sical Logistics, said, “We appreciate this opportunity to associate with Old Lane as an equity partner in Sical Infra Assets. Old Lane shares our vision to build world-class infrastructure, for delivery of seamless integrated multimodal logistics solutions to our customers. I am confident that the existent services business and the asset heavy infrastructure business will feed off each other and provide efficiency to the infrastructure business as well as quantum growth in value/volume to Sical’s services business.”

Hari Aiyar, Chairman & Managing Director of Old Lane India said, “Old Lane is delighted to partner with Sical Logistics to create Sical Infra Assets Ltd. We are excited about the growth opportunities in logistics infrastructure, which is a key bottleneck in maintaining India’s growth momentum. With integrated port and rail assets, an experienced promoter in Sical Logistics and Old Lane’s expertise in extending the scale and scope of portfolio companies, Sical Infra Assets is well positioned to bring uniquely efficient solutions to the marketplace.”

The movement of assets from Sical Logistics to Sical Infra Assets and the flow of investment of USD 26 mn from Old Lane, are expected to be complete by February 2008. Sical has submitted the application to the Foreign Institutional Promotion Board (FIPB) and the investment will be accepted, subject to all regulatory approvals.

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About Sical

Sical Logistics Ltd is India’s leading integrated multi-modal bulk and containerized logistics solutions provider handling around 22mn tones of bulk cargo as well as over 5,00,000 TEUs of containerized cargo. Headquartered in Chennai in the south of India, Sical (formerly South India Corporation Agencies Limited) is listed on the Mumbai Stock Exchange and the National Stock Exchange.

The services of the company are segmented as:

v Bulk-Stevedoring/ Port terminals/ Customs and agency services/ trucking/ railroad/ warehousing

v Container- Container terminals/ ICDs/CFS

v Offshore- O&M of Platform Supply Vessels for ONGC/ owning PSV

Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin, 4.5 lakh square feet of storage across over 92 warehouses; owned and regularly contracted fleet of over 2500 transport vehicles, and container freight stations at 4 locations across India. Sical's FY2006-07 revenue was Rs 9.90 billion on Rs 301.9 million equity capital.

About Old Lane

The Old Lane India Opportunities Funds were established in July 2006, and are sized at USD 518 mn and have a ten (10) year life. These funds are dedicated for long-term investment opportunities in India, primarily in the infrastructure and real estate sectors.

The Old Lane India Opportunities Funds and other investment funds are advised by Old Lane, LP, a US-based investment firm providing investment management and other financial services with offices in the United States and United Kingdom. Old Lane, LP operates as an independent business unit of Citigroup, its ultimate parent. Old Lane was established by a group of senior executives, many of whom previously worked together at Morgan Stanley, including its former President, Mr. Vikram Pandit. Investors in the Old Lane, LP managed funds include some of the world’s premier financial institutions, endowments and pension funds. Old Lane India acted as the sub-advisor to Old Lane with respect to this transaction.