Spice Mobiles - Limited Review For The Quarter Ended Sep 30, 2007

Spice Mobiles Ltd has informed that in the limited review report of the Company for the quarter ended September 30, 2007, the Auditors of the Company have made the following observations:

The Company has decided to discontinue the Information Technology (IT) business and dispose of the same by selling its assets and settling its liabilities piecemeal. The management has partially implemented this decision and the operations of the it Segment have scaled down significantly. However, it continues to be a reportable segment as defined under Accounting Standard 17 Segment Reporting, but has been disclosed as 0thers in the accompanying statement of unaudited financial results of Company for the quarter ended September 30, 2007.