JM Financial

Mumbai, July 27, 2006: The Board of Directors of JM Financial Limited, at their meeting held today, has considered and taken on record the unaudited financial results for the quarter ended June 30, 2006. The Company reported a net profit of Rs.862.27 lakhs on a standalone basis during the said quarter as compared to Rs.16.24 lakhs reported in the corresponding quarter for the previous year. The consolidated net profit reported by the Company is Rs.2531.26 lakhs after tax, share of minority interest and share in Associates.

The earnings per share (EPS) for the quarter stands at Rs.3.07 on a standalone basis and Rs.9.02 on a consolidated basis.

Additionally, the Board of Directors have decided to issue up to 3,00,000 equity shares to the employees/ directors of the Company and its subsidiaries under Equity Stock Option Scheme subject to necessary consents/ approvals/ sanctions as maybe required in this regard; and for which a resolution is being included in the Notice convening the forthcoming Annual General Meeting.

The unaudited financial results are attached.

JM Financial Group is an integrated financial services group offering a broad range of financial products and services to its clients.