Mumbai – October 31, 2006: Morepen Laboratories Limited (Morepen), (BSE Code: 500288), (NSE Code: MOREPENLAB), the country’s largest manufacturer of Loratadine and Montelukast, announced its results for the second quarter ended September 30, 2006. The company’s focus on rationalizing costs and implementing initiatives for regaining its market share has yielded an impressive performance in the second quarter of FY07.

Financial Highlights For The Quarter Ended September 30, 2006

1. Total Sales were Rs.3422.55 lakhs, an increase of 37 percent over the same period last year.
2. Operating profit for the quarter ended was 5.24 percent
3. Net Profit margins for the quarter ended was 7% registering an increase of 4.70 percent over the same period last year.
4. Net Loss registered a marginal increase of 2.32 percent to Rs.885.01 lakhs.

Other Highlights For The Quarter Ended September 30, 2006

1. Submission and approval of the Corporate Debt Restructuring (CDR). Pursuant to the approval of the CDR scheme the promoter group has brought in Rs.10 crore
2. Majority of the lending banks have given their sanction for the CDR scheme
3. Roping in strategic investors and infusion of fresh capital by way of equity and debt
4. Focus on increasing presence and contribution from overseas markets
5. Focus on high margin bulk drugs and contract manufacturing
6. The company has issued 1000 warrants to the promoter group. With each naked warrant a right is attached to subscribe to 1,00,000 (One Lac) equity shares at Rs. 10/- per share( face value of Rs. 2/- each at a premium of Rs. 8/- per share) as against price of Rs. 7.90  determined as per SEBI Preferential Issue Guidelines.
7. Contract manufacturing business (CRAMS) in this quarter registered a growth of approximately 400% as compared to corresponding quarter and has seen better capacity utilization
8. Dr. Morepen range of OTC products including products like Burnol and Lemolate have shown increase of over 70% for the quarter 

Mr. Sushil Suri, Chairman and Managing Director, Morepen Laboratories Ltd. said, “The approval for the CDR package will enable us to focus on our core activities. We will focus our energies on high margin businesses. Importantly, the initiatives we had implemented to regain our overseas market share have been yielding positive results. We believe, the future holds a lot of promise for the company and  the shareholders who have reposed faith in the Company are likely to reap the Benefits in the coming quarters. The  company will infuse additional funds for working capital and ramp up the capacities which will register robust spurt in revenues and bottom line”.

For additional information please contact

Rajiv Adhikari / Prasanna Ratanjankar: Mobile: 98201 28688 / 9869028616