MAURITIUS FREEPORT DEVELOPMENT COMPANY LTD

Freeport Zone 5, Mer Rouge,

Port Louis

MAURITIUS

CAUTIONARY ANNOUNCEMENT

At a Special Meeting of the Company held today, it has been resolved to proceed with a Rights Issue in the proportion of 1 (one) Ordinary Share for every 2 (two) Ordinary Shares held; payable in three calls.

The new 30,000,000 Ordinary Shares of Rs.10/- each will be issued at an offer price of Rs.10 to all shareholders registered as at 10^th February 2006 and will be payable in three calls as follows:

§ 1^st Call : 16^th March 2006 (30,000,000 partly paid ordinary shares at Rs.3.34 each)

§ 2^nd Call : 30^th June 2006 (30,000,000 partly paid ordinary shares at Rs3.33 each)

§ 3^rd and Last Call : 30^th March 2007 (30,000,000 partly paid ordinary shares at Rs3.33 each)

Existing shares shall be traded cum-rights on the Stock Exchange of Mauritius from 24^th January 2006 till 7^th February 2006. The following calendar has been established for this rights issue:

§ Sending of offer letter : 15^th February 2006

§ Opening of subscription : 22^nd February 2006

§ First trading of rights : 23^rd February 2006

§ Last trading of rights : 9^th March 2006

§ Close of Subscription : 16^th March 2006

1^st Call

Allotment of partly paid Ordinary Shares (1^st Call) : 30^th March 2006

First trading day for partly paid Ordinary Shares (1^st Call) : 6^th April 2006

Last trading day for partly paid Ordinary Shares (1^st Call) : 8^th June 2006

Suspension of trading for partly paid Ordinary Shares (1^st Call) : 9^th June 2006

2^nd Call

Last date for payment (2^nd Call) : 30^th June 2006

Allotment of partly paid Ordinary Shares (2^nd Call) : 14^th July 2006

First trading day for partly paid Ordinary Shares (2^nd Call) : 25^th July 2006

Last trading date for partly paid Ordinary Shares (2^nd Call) : 8^th March 2007

Suspension of trading for partly paid Ordinary Shares (2^nd Call) : 9^th March 2007

3^rd Call

Last date for payment (3^rd Call) : 30^th March 2007

Allotment of fully paid Ordinary Shares : 14^th April 2007

First trading for the fully paid Ordinary Shares : 25^th April 2007

Shareholders are therefore advised to be cautious when dealing with the shares of Mauritius Freeport Development Company Ltd until the relevant offer documents.

Dated this 20^th day of January 2006

By order of the Board

Interface Management Services Ltd

Corporate Secretary