Deccan Chronicle Holdings

The Company has achieved many a milestone and has had a significant
 financial year ended March08, the quarter ended June 08 is further
 reinforcing our belief that Deccan Chronicle Holdings Ltd will change
 considerably in size and character over the next 24 months and achieve
 substantial value creation for its shareholders.
 
 Your Company has successfully accomplished its vision of being present
 in all three large southern markets and is poised to attain leadership
 position in Southern India with the launch of the Bangalore edition on
 May 26th 2008.
 
 Your Company has entered the financial/business segment on April 16th
 2008 with the launch of the Financial Chronicle on a pan India basis
 launching simultaneous editions from Bangalore, Chennai, Hyderabad &
 Mumbai. The product is a refreshing change from the current offerings
 and is aimed to be more interactive, its appeal is further enhanced by
 the co-branding with the International Herald Tribune as it brings
 global news and perspective to the reader.
 
 The web edition of the Financial Chronicle www.mydigitalfc.com has
 garnered more hits/page views than its print format in size of
 readership besides a greater level of interactivity that has attracted
 a larger audience. www.mydigitalfc.com as a portal will soon replace
 many other offerings as a one stop content/analysis portal.
 
 The web is the future. Deccan Chronicle on the web together with
 www.mydigitalfc.com and the specific student community portal of
 www.papyrusclubs.com and two more specific portals under development
 residing in Sieger Solutions has achieved a remarkable success with
 turnover from content/subscription/advertising as follows for the year
 ended March 31st 2008:
 
 Sales Turnover : Rs. 71,88,61,930
 
 PBIDT :Rs. 58,95,13,960
 
 PBT : Rs. 48,72,04,818
 
 PAT : Rs. 31,97,28,232
 
 These numbers are significant as they indicate the trend and direction
 that will change the character of Deccan Chronicle Holdings Ltd in
 future as eventually web initiatives of Sieger Solutions will become
 larger as we can see from the performance for the quarter ended June
 30th 2008:
 
 Sales Turnover : Rs. 23,15,98,121
 
 PBIDT : Rs. 18,23,61,069
 
 PBT : Rs. 16,20,55,189
 
 PAT : Rs. 13,18,55,189
 
 The challenges of growth in the industry and the current difficult
 global scenario has led to increasing cost pressure on the newsprint
 prices globally together with higher freight costs owing to
 astronomical rise in the price of crude oil, your Company has tried to
 mitigate these with a rate increase of 30% in its advertising tariff
 across all its editions effective from May 1st 2008 and this should
 reasonably cover any dips in the profitability ratios.
 
 On behalf of the management team I assure that your Company is ready to
 grab market share and seize business opportunities as much as take
 corrective steps and change course as we encounter new challenges. I
 also take this opportunity to thank the Board of Directors for their
 support and suggestions, our suppliers, employees and our readers.
 
 Sincerely,
 
 P K Iyer
 Managing Director