HOV Services - Limited Review for the first quarter ended June 30, 2007

Following observations were made by the auditors of HOV Services Ltd in its limited review report for the quarter ended June 30, 2007:"

The Auditors further report that the Company has not made any adjustments in respect of Revised Accounting standard 15 - 'Employee Benefits' applicable to the Company with effect from April 01, 2007 which, as mentioned in note 3 of the financial results, would be given effect to at the year end, the impact whereof on the attached financial results, as explained by the management, would not be significant."