Q2 Loan Sanctions up 69 %; Disbursements up 36 % Mumbai, October 22, 2007: LIC Housing Finance Limited announced its unaudited results for the second quarter ended September 2007, following its approval by the Board of Directors in a meeting held in Mumbai on October 22, 2007 Highlights (Rupees in crores) Quarter ended September 2007 Six months ended September 2007 Loan Sanctions 2268 Up by 69% 3425 Up by 48% Loan Disbursals 1599 Up by 36% 2821 Up by 25% Total Income 527 Up by 37% 990 Up by 37% Net Interest Income 150 Up by 43% 254 Up by 49% Profit Before Tax 156.78 Up by 66% 219.16 Up by 60% Net Profit 116.37 Up by 53% 163.07 Up by 44% Outstanding Mortgage Portfolio 19135 Up by 20% (1 crore=10 million)

Performance Details: The Company has recorded a healthy growth in business during the second quarter ended September 2007. The Company sanctioned Rs. 2268 crores and disbursed Rs. 1599 crores of loans registering a growth of 69 % and 36 % respectively. Net profit for the Q2 was Rs. 116.37 crores as compared to Rs.75.93 crores in the corresponding period last year, thus showing a growth of 53 %. The Company's total Income for the second quarter ended September 2007 was Rs. 527 crores as against Rs. 385 crores during the same period last year, a growth of 37 %. For the six months ended September 2007 the Company sanctioned Rs. 3425 crores and disbursed Rs. 2821 crores, a growth of 48 % and 25 % respectively. For the six months ended September 2007, the Company's total Income was Rs.990 crores as against Rs.725 crores during the same period last year. Net profit during this period was Rs 163.07 crores as compared to Rs. 113.39 crores in the corresponding period last year, a growth of 44 %. The Outstanding Mortgage Portfolio as on September 30, 2007 was Rs. 19135 crores as against Rs. 15959 crores on September 2006, thus registering a growth of 20 %. The Gross Non Performing Assets recorded a decline from 3.75 % as on September 2006 to 2.84 % as of September 2007. The Net NPAs of the Company stood at 1.65 % as of September 2007. The Company recorded a Net Interest Margin of 3.20% for the second quarter of FY 2008 as against 2.68% for the same period in the previous year. LIC Housing Finance Limited Director and Chief Executive, Mr. S.K. Mitter, said “There has been a good performance in almost all areas of operation in the quarter just ended. We have shown a business growth at a higher than Industry rates. We have been able to reduce the Gross NPAs significantly both sequentially as well as on year-on-year basis. There have been very healthy improvements in the Net Interest Margins as well, registering over 3% for the quarter, one of the highest we have witnessed so far. The Company is now poised to move into the next level of growth and performance. We are also considering an enhancement of the Equity Capital.” Business Initiatives: Ø LICHFL Care Homes Ltd: LICHFL Care Homes Ltd., a wholly owned subsidiary of LIC Housing Finance Ltd., inaugurated its first Assisted Living Community Centre for Senior Citizens in March 2006 at Bangalore; the second project is coming up at Bhuvaneswar. Ø LIC Housing Finance Limited has recently entered into a Memorandum of Understanding to take a stake in LIC of India’s credit card venture. About the Company: LIC Housing Finance Ltd is one of the largest housing finance companies in India having network of 115 offices across the country and overseas representative offices in Dubai and Kuwait. The Company was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. It launched its maiden GDR offering in 2004. The company enjoys ‘AAA’ rating from CRISIL on its debt issuances indicating highest safety with regard to the ability to service interest and repay capital. The company recently launched its maiden Fixed Deposit program, rated FAAA/stable by CRISIL. For further information please visit the website www.lichousing.com or contact: Mr. S.K. Mitter Director & Chief Executive Mr. Hemant Batra LIC Housing Finance Ltd Adfactors PR Pvt. Ltd.