Good Morning Dear Shareholders,

On behalf of the Board of Directors of Sujana Towers Limited, it is indeed a great pleasure for me to welcome you all to the 1 st Annual General Meeting of your Company. I appreciate you spared your valuable time to be with us on this significant occasion. I deem it a great privilege to address this august gathering and to share my views on Towers Industry and discuss the performance of your Company.

The 1 st Annual Report for the financial year ending 30 th June, 2007 along with the Directors’ Report, Audited Annual Accounts and Auditor’s Report are with you for some time, and I assume to take them as read.

The financial year 2006-2007 has been eventful year for your Company as the Towers Division of Sujana Metal Products Limited was demerged with your Company pursuant to the Scheme of Arrangement and Amalgamation as approved by the Hon’ble High Court of Andhra Pradesh at Hyderabad on 10.04.2007 which is effective from 04.05.2007.

India today is one of the fastest growing economies with a compounded annual growth rate of 8.6% in the last three years. Indian economy, Asia's fourth largest, grew at a rapid pace of 9.3 per cent during April-June of 2007 after a 9.4 per cent expansion in the entire 2006-07.

During the current year India remains an attractive destination for foreign investment and the stock markets are witnessing a sustained bull run and the BSE Sensex crossed 16000 mark.

Domestic

The economic acceleration has put significant pressure on the existing infrastructure, such as power, roads, ports, airports and railways. According to certain estimates, India being the fifth largest generator of power, positioned behind USA, China, Japan and Russia is expected to surpass Russia and Japan by 2030. However, power generation has not been able to catch up with demand growth in recent years. The demand-supply mismatch has been an area of great concern and the Government of India is committed to bridging this gap. In order to achieve the 11 th five-year plan targets, the Government has introduced new accelerated process for awarding ultra mega power projects (UMPPs) to the private sector. The Government has already planned 8 UMPPs of 4,000 MW each and this initiative is expected to help the Government achieve the target of adding 76,000 MW by 2021.

India has witnessed remarkable growth in the telecom sector in past five years. But this growth has been limited to the urban sectors. It is only now that the telecom operators have begun focusing growth opportunities in the semi-urban and rural areas, where the telecom penetration stands at an abysmal 2% of population. This growth in coverage area coupled with growth in subscribers will drive the demand for towers and cell sites.

International

Apart from India, big growth opportunities have come up in the regions such as Africa, Central Asia, Middle East and North America. Industry experts believe that Africa and Middle East, together, are expected to spend more than US$ 20 billion on transmission and distribution. Moreover, according to international Energy Agency, private investors and Governments will need to invest more than US$ 10,000 billion in the world’s power sector in the next 25 years to prevent shortage of electricity supply.

Ladies and Gentlemen,

Let me now briefly share with you the highlights of the Company's performance and significant initiatives adopted to sharpen the competitive strengths of your Company:

As you are all aware that your Company had emerged from the demerger of Towers Division of Sujana Metal Products Limited and it had achieved a turnover of Rs.439.45 Crores earning profit before tax of Rs.51.57 Crores.

FUTURE PROSPECTS:

In future, in a constantly changing world, the winners will be those who can identify which of today’s developments will be important over the long term. In the next 10 to 15 years, we may witness unprecedented developments and opportunities for the towers sector. Fast track development in the power and telecommunication sectors leads to higher demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries. This makes the Company to plan to set up another manufacturing facility at coast based location in order to cater to the domestic and export market. The Company also plans to set up / acquire subsidiaries in the Middle East/South East Asia in the area of power transmission and telecom infrastructure services

Your Company is proposing to issue Foreign Currency Convertible Bonds, Warrants convertible into equity shares to the promoters for the purpose of meeting the expenditure on expansion of Company’s projects and acquisition / setting up of business undertakings in India and / or abroad and part financing working capital requirements and also Optionally fully convertible debentures to IFCI Limited pursuant to the Scheme of Arrangement and Amalgamation approved by the AP High Court.

Your Company being one of the developing companies is ideally positioned to seize the emerging opportunities and acquire the scale of a global company. Our Company has capabilities to quickly adapt to the changing market conditions and sustain the projected growth in sales and profits.

HUMAN RESOURCE DEVELOPMENT

Sujana Towers Limited has conducted training programmes to its employees enabling them to improve/upgrade their skills.

CORPORATE GOVERNANCE

The Company had got the listing status after demeger with effect from 21 st August, 2007 and its philosophy on Corporate Governance envisages attainment of the highest levels of transparency and accountability in all facets of its operations and in its interaction with all including Clients, Employees, Promoters, Stakeholders and Government.

Your Company has been practicing the principles of good corporate governance with the aim of enhancing long-term shareholder value and protecting the interests of other shareholders in line with international best practices. Infact our compliance practices transcend the principles laid down by Statute and the Regulatory Authorities.

ACKNOWLEDGMENTS

Your continued support and unstinted confidence inspires us in all our endeavors for excellence, and, on behalf of the Board of Directors of your Company, I wish to convey sincere thanks to you, our valued shareholders. I gratefully acknowledge the contribution of our workforce, which is our biggest asset and is at the core of our strategies. I look forward to thank the members of the Board for their valuable guidance, our valued customers for their continued patronage and to banks and financial institutions. I am thankful to our Statutory Auditors.

I place on record my appreciation for the co-operation extended by SEBI, Bombay Stock Exchange Limited and Registrar of Companies, Andhra Pradesh without which your Company might have not got the listing status. I also thank the Government of India and the Reserve Bank of India for their guidance.

We solicit similar support and goodwill from our entire stake – holders in the years ahead. And last but not the least I express my thanks to Registrar and Share Transfer Agents for their valuable support.

Thank you one and all

Note : This does not purport to be the proceedings of the 1 st Annual General Meeting of the Company to be held on Thursday, 4 th October, 2007.