Statement from Mr. Ravi Nedungadi, President and Chief Financial Officer of the UB Group

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A section of the media has reported that lenders have rejected Kingfisher Airlines debt recast plans. This is factually incorrect and I have to FORMALLY DENY that we have conceived of any further debt restructuring plans in Kingfisher Airlines.

We have sought the Banks help to:

1. Substitute high cost Rupee borrowings with lower cost foreign currency debt to the extent it can be supported by Kingfisher Airlines own international operations whereby a natural hedge against currency movements exists.

2. Release cash deposits held with lessors against Maintenance Reserves by providing Bank Guarantees in lieu.

3. Appraise working capital requirements in the usual course, to account for changes in the international prices of fuel and the change in Rupee Dollar parity.

The banks are in active consideration of these requests and there is ABSOLUTELY NO QUESTION OF ANOTHER DEBT RECAST.