IGC Completes Acquisition of Ironman; Transaction Closed as of December 31, 2011; Projected to Swing IGC to Profitability

India Globalization Capital, Inc. IGC announced it has completed the acquisition of Ironman in China. The combined companies will be able to leverage expertise in India and in China to improve operating margins and profitability. The combined company will also have a significantly stronger balance sheet to support operations. For the financial year ended (FYE) March 31, 2011, Ironman sold high-grade iron ore (65-66% Fe content) generating revenue of $13.5 million with an operating income of $8.0 million and a net income of $5.67 million. Ironman's balance sheet had, as of FYE March 31, 2011, Total Assets of about $15.2 million and total liabilities of about $8.2 million and stockholders' equity of about $6.9 million. We expect to combine the financial statements as of December 31, 2011. PRC Ironman operates a beneficiation plant on a site with approximately 2.2 square kilometers of iron ore deposits. The initial studies project more than 3 million metric tons of ore deposits on this site. At current prices, the projected value of the reserves is approximately $350 million. The plant takes low-grade iron ore and through a dry and wet separation process extracts high-grade iron ore. Our strategy will be to ship low-grade iron ore from India to the plant and process the ore into high-grade ore, which can then be sold to customers in China. China is the world's largest iron ore importer. The market for Chinese steel includes Japan and other Asian countries such as India.