C. Mahendra Exports Ltd states categorically that neither C. Mahendra Exports Ltd nor any C. Mahendra’s affiliated company has or is in breach of any of the conditions laid down by the DTC BPP rules. C. Mahendra Exports Ltd challenges the suspension of its DTC Sightholder status and vehemently defends itself against any suggestions of wrong doing or malpractice. The decision of the Diamond Trading Company to suspend supply has been taken without providing an opportunity for C. Mahendra Exports Ltd to defend itself. DTC’s action is therefore based on an incorrect understanding of the facts. C. Mahendra Exports Ltd will be strongly challenging its suspension when it meets with DTC on 16th January 2008. With the support of the DTC’s Management we expect for a quick resolution.

C. Mahendra Exports Ltd has felt it necessary to make this statement in public in order to protect its reputation which is currently being unfairly damaged in the industry as a result of this supply suspension.