IGC to Develop Multiple Vertical Farming Sites

Bethesda, July 8, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) announced thatit has entered into an agreement with TerraSphere Systems andGreenlife Ventures to develop multiple facilities to produceorganic leafy green vegetables utilizing TerraSphere's advancedpesticide free organic indoor farming technology.  Thebuild-out for each new location could be transitioned to supportthe legal cannabis industry as soon as there is clarity on theevolving legal framework associated with each geographicregion.

The collaborative agreement between the parties calls for thebuild-out of four initial facilities in the Northeast and Canadaand joint work on the process of patenting technology responsiblefor identifying the specific origin of plants required forintrastate commerce.  Each facility will range in sizefrom 10,000 to 30,000 square feet and will deploy proprietarytechnology that based on previously built facilities, has severaldistinct advantages over current indoor farming methods includingbeing able to achieve yields that exceed traditional methods by upto 100x. The technology also involves incorporating environmentallyfriendly LED lighting for developing faster growing plants withadditional yields of up to 20%.

Once operational IGC will own 51% of each venture, which undercertain circumstance, could be slightly higher or lower. IGC isrequired to make a cash investment in the venture and will receivea seven-year option to purchase the venture for cash and shares ofits common stock. It is estimated that a successful facility of thetype contemplated by this venture could produce between $2.0million and $2.5 million in annual revenue with a projected netearnings return of about 25%. The total cost of each facility isexpected to be between $2.5 million and $3.0 million. There is noguarantee that the estimated revenue and net earnings will beactually realized. The venture has committed debt financing inplace for each project location.

CEO Ram Mukunda stated, "We are excited to partner withTerraSphere as we look to both develop proven pesticide-freeorganic growing intellectual property and secure a meaningfulfootprint of high tech facilities, in important states, forultimately growing legal cannabis. In the interim, we expect thesefacilities to generate accretive revenue from other plants as partof our strategic short-term goal of building profit, whilesimultaneously moving IGC closer towards meeting our long-term goalof becoming a dominant player in the emerging legal cannabisspace."

About IGC

Based in Bethesda, Maryland, India Globalization Capital, Inc.has articulated a strategy to become a company with diverseoperating businesses including niches such as medical marijuana,specialty pharmaceuticals and solar energy. We are currentlyengaged in trading and rental of heavy equipment in the UnitedStates, China and India. IGC's plan in the short term is to createcash flow from existing assets and in the medium term to expand itsasset base through opportunistic acquisitions. For more informationabout IGC, please visit IGC's website athttp://www.indiaglobalcap.com.

About TerraSphere

TerraSphere designs and builds super-efficient vertical farmingsystems that grow a variety of crops in pollutant-freeenvironments. The technology is contained, which means crops can begrown year-round in any location, and at considerably higher yieldsthan traditional growth methods. For more information aboutTerraSphere Systems, please visithttp://www.terraspheresystems.com.

Forward-looking Statements

Some of the statements contained in this press release that arenot historical facts constitute forward-looking statements underthe federal securities laws. Forward-looking statements can beidentified by the use of the words "may," "will," "should,""could," "expects," "plans," "anticipates," "believes,""estimates," "predicts," "intends," "potential," "proposed" or thenegative of those terms. These statements are not a guarantee offuture developments and are subject to risks, uncertainties andother factors, some of which are beyond IGC's control and aredifficult to predict. Consequently, actual results may differmaterially from information contained in the forward-lookingstatements as a result of future changes or developments in IGC'sbusiness and acquisition and diversification strategy, competitiveenvironment, infrastructure demands, iron ore availability in itsexisting business and governmental, regulatory, political,economic, legal and social conditions in, among other places, Chinaand India.

Except as required by federal securities laws, IGC undertakes noobligation to publicly update any forward-looking statements,whether as a result of new information or future events, orotherwise. Other factors and risks that could cause or contributeto actual results differing materially from such forward-lookingstatements have been discussed in greater detail in IGC's Form 10-Kfor fiscal year ended March 31, 2013, and in subsequent reportsfiled with the U.S. Securities and Exchange Commission.