Jain Irrigation Systems Limited the agriculture major announced today that it has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.001% of the share capital of Naandan Irrigation Systems C.S. Ltd, Israel in all cash deal for an amount of $21.5 mn. Out of which a sum of $10.5 mn will be retained in Naandan for future growth of the Company.

Company would be controlled and managed jointly by Jain Irrigation and Kibbutz Naan on an equal basis. Jain is further committed to bring additional funding support in form of loan and/or guarantees to the tune of $7.5 mn for the bonafide growth requirements of the Company. The closing is expected to take place early next month.

NaanDan’s global network includes manufacturing companies in the USA, Spain, Mexico, Brazil, Chile and Australia and marketing subsidiaries in France and Italy. Naandan has exclusive distributors in over 50 countries and employs 550 people worldwide. Naandan has achieved a $75 mn revenue for 2006 and is a profit making company.

On the completion of the proposed transaction, NaanDan’s name will be changed to ‘NaanDan Jain Irrigation C.S. Limited’. The Company will be the platform for development of worldwide drip/sprinkler market for both partners. Both partners have agreed to provide long term guarantees for maintaining the manufacturing facilities and employment in Israel.

Jain Irrigation has pioneered drip irrigation for small farmers in India and has the major market share in India which is one of the fastest growing irrigation markets in the world. Jain Irrigation acquired Chapin Watermatics Inc., USA (Revenues 2006- approx.$10 mn), a leading manufacturer of drip tape in April 2006, and also completed acquisition of Aquarius Brands Inc., USA another irrigation equipment provider (Revenues 2006 - approx.$30 mn) recently in February 2007. With these two acquisitions Jain Irrigation had become number 2 in world in the field of drip/sprinkler irrigation. Now, Jain Irrigation is on its way to becoming the worldwide leader in terms of revenue, product range, technological edge and market reach.

NaanDan is the pioneer in the development of drip irrigation and sprinkler systems. NaanDan was formed in 2001 by a merger of two well established and prominent irrigation companies. Naan, was established in 1937, while Dan was established in 1970. NaanDan develops, manufactures and markets advanced irrigation technologies, covering an extensive range of applications in open fields, orchards and plantations, greenhouses and nurseries, residential and landscape areas and industry.

Kibbutz Naan of Israel is one of the largest and better managed kibbutz in Israel. Kibbutz is a kind of cooperative society with members contributing and sharing the economic benefits from kibbutz assets and management.

Chairman of Jain Irrigation, Mr. B. H. Jain said, “ this is a historic deal where Jain Irrigation which is the fastest growing irrigation company in the world, has joined hands with Naandan, which is one of the earliest pioneers of the irrigation technology having global presence. We will be able to leverage their technology to improve productivity of Indian agriculture and use their access to global markets to increase exports from both the countries".

Secretary General of Kibbutz Naan, Mrs. Smadar Shavit said, “ the JV Company will reap economic and strategic benefits of the synergies the two companies enjoy in drip/sprinkler business, to become a worldwide leader in the irrigation business".

Jain Irrigation Systems Ltd is a diversified company with more than 4,000 employees and market capitalization in excess of INR 2.75 bn and a product portfolio encompassing Irrigation Products, Piping Products, Plastic Sheets, Dehydrated Foods, Fruit Puree, Pulp and Juices in India and other world markets. Jain Irrigation has been named as one of the eight Indian companies expected to emerge as challengers to the World’s leading companies by Standard and Poor recently in May 2007.

Jain Irrigation was advised by Export Import Bank of India and Yes Bank Limited on the deal.

For details on Naandan Irrigation Systems C.S. Limited, please visit website www.naandan.com