India Globalization Capital, Inc. Announces Successful Conclusion of the Program...

India Globalization Capital, Inc. Announces Successful Conclusion of the
Program for Exercise of Warrants to Purchase Common Stock

BETHESDA, Md., Jan. 12 /PRNewswire-FirstCall/ -- India Globalization Capital,
Inc. ("IGC" or the "Company"), (Amex: IGC.U, IGC.WS, IGC), a company
developing infrastructure in India, is pleased to announce that its tender
offer for the exercise of its outstanding warrants to purchase common stock
closed successfully upon expiration of the tender offer period on Friday,
January 9, 2009 at 5:00 p.m. EST.

Under the tender offer, 11,943,878 warrants (50% of the warrants outstanding)
were exercised, of which 2,706,350 warrants were exercised by exchanging 5
warrants and $0.55 for one share of common stock and 9,237,528 warrants were
exercised by surrendering 12 warrants for one share of common stock. The offer
resulted in the Company raising a total of $297,698.50 in cash proceeds and
issuing a total of 1,311,064 new shares of common stock.

Following the issuance of the shares relating to the warrant exercise, India
Globalization Capital, Inc. will have 10,091,971 shares of common stock
outstanding. The remaining 11,855,122 warrants outstanding after the tender
offer will expire in accordance with their terms on March 3, 2011.

"We are pleased with the success of the tender offer. Our investors understood
the institutional imperative of simplifying our capital structure," said Ram
Mukunda, CEO of IGC.

Questions regarding the completed tender offer may be directed to Continental
Stock Transfer & Trust Company, the Depositary, at (212) 509-4000, ext. 536,
or Morrow & Co., Inc., the Information Agent, at (800) 607-0088.

This news release is merely a notification of the results of the tender offer
and is neither an offer to buy or exchange securities nor a solicitation of an
offer to sell or exchange any securities in IGC or any of its subsidiaries.
The tender offer was made only through documentation distributed to record
holders of IGC Warrants (AMEX: IGC.WS) and IGC Units (AMEX: IGC.U) as of
November 24, 2008, as supplemented on December 22, 2008.

About IGC

Based in Bethesda, Maryland, IGC operates through two infrastructure companies
in India, Sricon Infrastructure Private Limited ("Sricon") and Techni
Bharathi, Limited ("TBL"). IGC owns sixty-three percent of Sricon and
seventy-seven percent of TBL. IGC through its subsidiaries in India has three
lines of business: 1) Highway and other heavy construction, 2) mining &
quarrying and 3) civil construction and engineering of high temperature
plants. The Company's medium term plans are to expand each of these lines of
business.

IGC's operations are based in India. The company has offices in Maryland,
Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form S-1 and
IGC's other filings with the SEC containing information about IGC, our Indian
operations and other relevant documents, are available at no charge at the
SEC's Internet site (http://www.sec.gov). For more information about IGC,
visit the company's web site at www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements
reflect management's current views and are subject to risks and uncertainties
that could cause actual results to differ materially from those projected,
expressed or implied in these statements. Factors, which could cause actual
results to differ, relate to: (i) the ability of the parties to successfully
execute on the contracts and business plan, (ii) our ability to raise
additional capital and the structure of such capital including the exercise of
warrants, and (iii) changes in the exchange rate between the US dollar and the
Indian Rupee. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information, future
events or otherwise. Other factors and risks that could cause or contribute to
actual results differing materially from such forward looking statements have
been discussed in greater detail in the
Company's registration statement on Form S-1.

SOURCE India Globalization Capital, Inc.

Sid Somarriba of India Globalization Capital, Inc., +1-301-983-0998,
info@indiaglobalcap.com; or Investor Relations: Jon Cunningham, RedChip
Companies, Inc., +1-800-733-2447, Ext. 107, info@redchip.com, www.redchip.com