has informed that the Board of Directors of the Company at its meeting held on April 24, 2006, noted the proposal of Adlabs Films Ltd (AFL) for de-merger of its FM Radio Business to a wholly owned subsidiary (SPV). The scheme envisages issue of pro-rata shares by the SPV, to all Shareholders of Adlabs Films Ltd, in the ratio of 2 (two) FREE Shares of the SPV, for every 1 (one) Share of Adlabs Films Ltd. The demerged company is proposed to be separately listed on the BSE and NSE, to provide liquidity to all shareholders. Reliance Land Pvt Ltd (RLL), an affiliate company of the Company will receive 4,12,00,000 shares of the SPV pursuant to the proposed demerger. The shares of the SPV received by RLL are proposed to be distributed free of charge, pro-rata to all shareholders of the Company in the ratio of 1 (one) share of the SPV for every 6 (six) shares held in the Company. All shareholders of Reliance Capital Ventures Ltd (RCVL), presently under the process of merger with the Company, will also receive free shares as above of the SPV in line with their shareholdings in the Company. The Scheme is subject to all requisite permissions and approvals, including inter alia, from shareholders, licensing and regulatory authorities, lenders, stock exchanges, High Courts, etc. The proposal will unlock substantial value for all the Company's shareholders, and will enable them to directly participate in the FM Radio business, one of the fastest growing segments in the Media and Entertainment industry. Adlabs Films recently won licenses for operating FM Radio stations in 45 cities across India, including all leading metro cities. Reliance Capital Limited has informed the Exchange that BoDs of the Company has noted the proposal of Adlabs Films Ltd (AFL) for de-merger of its FM Radio Business to a wholly owned subsidiary (SPV) and issuance of pro-rata shares by SPV to all shareholders of AFL in ratio of 2 free shares of SPV for 1 share of AFL. Pursuant of AFL de-merger, Reliance Land Pvt Ltd (RLL), an affiliate of RCL, will receive 4.12. crore shares of SPV, which is proposed to be distributed free of charge to all shareholders of RCL in the ratio of 1 share of SPV for every 6 shares held in RCL. (As per NSE bulletin dated on 26/04/2006)