(A member of State Bank of India Group)

INDIAN OCEAN INTERNATIONAL BANK LTD

COMMUNIQUE

The Board of Directors of Indian Ocean International Bank Ltd wishes to

inform the Shareholders and the public in general that the bank has now

obtained the approval of the relevant authorities to proceed with the Rights

Issue of 3,376,837 new Ordinary Shares of Rs10.- each at an issue price of

Rs30.- each in the ratio of One (1) new Ordinary Share for every five (5) Ordinary Shares held.

The Calendar in respect of the rights issue is as follows:

First cum rights trading session 23 July 2007

Last date to deposit shares at CDS for first day of 01 Aug. 2007

trading Rights

Last cum rights trading session 03 Aug. 2007

Shares traded exrights 06 Aug. 2007

Close of Shareholders’ register after Cum Rights trading 08 Aug. 2007

Sending of offer letter and Admission Document 14 Aug. 2007

for 2007 Rights Issue to Shareholders

Opening of subscription 17 Aug. 2007

Last date to deposit letter of allotment at CDS for 22 Aug. 2007

trading of rights

First day for trading of rights 23 Aug.2007

Last day for trading of rights 29 Aug.2007

Closure of rights subscription 04 Sept. 2007

Allotment of Shares 14 Sept. 2007

First day of trading of shares 21 Sept. 2007

By Order of the Board

A. B. MOSAHEB

Company Secretary

20 July 2007

This Communique is issued pursuant to DEM Rules 21 and 23. The

Board of Directors of INDIAN OCEAN INTERNATIONAL BANK

LTD accepts full responsibility for the information contained in this Communiqué.