Nelco - Updates

Nelco Ltd has informed BSE that on September 25, 2009 the Company has sold 5,70,000 Equity
Shares of Rs. 10/- each constituting 55.88% of the Company's holding in that Company to
Af-Taab Investments Company Ltd. at Rs. 280/- per share.

Nelito Systems Ltd. is an Associate of the Company and after the sale of the aforesaid shares, the Company is holding 4,50,000 Equity Shares of Rs. 10/- each in that Company.