Press ReleaseHCC to dilute 14.5% in HCC Concessions to The Xander Group~ Equity fund raising of Rs.240 crore values the company at Rs.1,650 crore ~Mumbai, July 28, 2011: HCC Infrastructure Co Ltd, a 100% subsidiary of Hindustan Construction Company Ltd, will raise Rs.240 crore by diluting a 14.5% stake in its wholly owned subsidiary, HCC Concessions Ltd. The stake is to be acquired by The Xander Group, a global investment firm focused on the infrastructure, hospitality, retail and real estate sectors. The transaction values HCC Concessions, which designs, finances, builds and operates transport infrastructure, at Rs.1,650 crore (US$375 million), and is aimed at supporting the future growth of the business.

Presently, HCC Concessions’ Rs.5,500 crore (US$1.2 billion) portfolio includes six NHAI concessions which include one annuity project and five toll roads: Nirmal (annuity) in Andhra Pradesh, the Delhi Faridabad Elevated Expressway (dfskywayTM), Dhule- Maharashtra/MP Border (Dhule) on NH3 and three contiguous sections in West Bengal on NH34. Nirmal and dfskywayTM are operational and Dhule is expected to be commissioned later this year. Execution on the three contiguous sections of NH34,

which connects the state capital to North Bengal and serves as a gateway to the North

East, is proceeding as planned.

Commenting on the transaction, Ajit Gulabchand, Chairman and Managing Director, HCC, said, “The Indian Government has enhanced the pace of development of world class infrastructure for India through Public Private Partnership and HCC has chosen Xander, an investment group in which we find a wealth of expertise & commitment to complement our business goals. The deal reinforces faith in our robust asset portfolio and the growth potential for our concessions business.”

Arjun Dhawan, Director, HCC Concessions Ltd, said, “Xander and HCC have similar traditions with a focus on the long term. I am delighted that Xander will share our commitment to serving the community by delivering the highest standards of commercial and public service in transport infrastructure concessions.”

Arthur Segel, Chairman, The Xander Group, said, “As India continues to grow, it will need more world-class infrastructure, built by world-class companies. HCC is one such company and we believe its skills will help propel the country further into the 21st century. We are delighted to participate in the growth of its infrastructure business.”

Commenting on the investment, Siddharth Yog, Managing Partner, The Xander Group said, “HCC is a pre-eminent Indian infrastructure company with an established execution pedigree built over eight decades. We are very pleased to partner with HCC in growing its concessions business, and we fully support its vision of building quality assets and a viable long term business.”

About HCC Concessions Ltd:

HCC Concessions is a subsidiary of HCC Infrastructure Co Ltd, a leading developer serving India’s infrastructure needs in the areas of Transportation, Power and Urban Infrastructure. The Company’s focus on sustainable and responsible development through the Public Private Partnership results from expertise in concept innovation, risk analytics, construction and operations. HCC Infrastructure Co Ltd is a wholly owned subsidiary of Hindustan Construction Company.

About HCC:

The HCC group is a global engineering & construction player and a pioneer in urban infrastructure development. HCC has executed a majority of India’s landmark infrastructure projects, having constructed over 25% of India’s hydro-power and over 50% of India’s nuclear power generation capacities, 2,300 km of roads and expressways, and over 170 km of complex tunneling in addition to

100’s of bridges, dams, and barrages. Recent projects include the Bandra Worli Sea Link, and India’s largest nuclear power plant at Kudankulam. At present HCC’s concession assets under management exceed 5,500 cr. The group is developing Lavasa city, India’s largest urban development across

25,000 acres, approximately 1/4th the size of Mumbai. HCC is headquartered in Mumbai and is listed on the BSE and NSE. The HCC group of companies includes HCC Ltd, HCC Infrastructure Co Ltd, HCC Real Estate Ltd, Lavasa Corporation Ltd and Karl Steiner, AG. For more information, please visit www.hccindia.com.

About The Xander Group Inc.

The Xander Group Inc. (Xander) is a global investment firm focused on the infrastructure, hospitality, retail and real estate sectors. Since 2005 the firm has committed over US $ 1.8 billion of equity capital to the Indian market across five dedicated India funds. The firm combines extensive industry knowledge with global experience and relationships, and works with quality promoters, partners and companies across the growth cycle to build and scale businesses and generate superior long term returns.

For further information:

Sandeep Sawant

Hindustan Construction Company Ltd

Tel: +91 22 25751000

Mobile: +91 9833992874

Email: sandeep.sawant@hccindia.com

Kartik Upadhyay

Vaishnavi Corporate Communications

Tel: +91 22 66568787

Cell: 9821735515

Email: kartik.upadhyay@vaishnaviadvisory.com