Mumbai, December 9, 2008 – Ambuja Cements Ltd. welcomes the Prime Minister’s package and the slew of measures announced by him to boost demand on the backdrop of international financial turmoil and its fallout on the Indian economy.

 The Government of India has reduced the excise duty from 12% to 8% across the board.  This excise reduction is expected to moderate the high incidence of excise duty on cement.

 The Company has decided to pass on the benefit of excise duty reduction to the end user and hopes that lowered prices will help stabilize the demand over the coming months.

 The Indian Railways have, however, increased the freight tariff by changing the classification for coal and cement which is expected to push the prices of cement up by Rs.1.50 to Rs.2 per bag.  After factoring in the increased railway tariff, the price of ACL cement is expected to go down by Rs.4 toRs.6 per bag from today.

 The Government has not declared a similar reduction in excise on clinker which stays at Rs.450 per ton.  Clinker is the base raw material for manufacturing cement. ACL expects the Government to shortly announce proportionate reduction in clinker excise duty to ensure a real reduction in excise duty incidence on cement.

 The Company is confident that the retail price of cement will soon reflect this reduction. – Ends-

 For details contact:

N Y Sanglikar
Ambuja Cement
+91 22 40667255
+91 97691 39392

Chennakeshav Shenoy
Perfect Relations
+91 22 24367155
+91 9819266998