HOV Services Ltd Board of Directors consider and approves a Material Transaction proposal

HOV Services Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 05, 2008, inter alia, has considered and approved the following:

- A Material Transaction Proposal where in the Company has received an offer of approximately $ 202 million to purchase 100% of its wholly owned subsidiary HOV Services, LLC and its Hong Kong subsidiary from a Company controlled by some of Company's promoters and shareholders. On a fully diluted basis including ADR's if any, the shareholders will have the right to receive approximately $ 91 million in cash - the Company's shareholders will have the right to receive either cash of approximately Rs 170 or one share in the buyer for each share held as of the record date; the existing debt will be assumed under the terms of this offer. All shareholders as of the record date will continue to own their current shares after receipt of cash or shares in the buyer. The Company's independent directors believe this to be in the best interest of the shareholders and have recommended that the Company seek independent legal and financial advice. Upon satisfactory statutory or regulatory approvals, as required by law and subject to positive recommendation by the Company's independent advisors to Company's board of directors, the transaction will then be submitted for approval to the shareholders.