22^nd March, 2007: Fortis Healthcare Limited ("FHL"), one of the largest private healthcare companies in India*, today announced the signing of a definitive agreement (the "pre-IPO agreement") for allotment of 6.7 lakh equity shares to VASCO Inc. ("VASCO"), an investment arm of McKinsey & Company, for an investment amount of Rs. 106.89 million (approximately). VASCO has been allotted the equity shares at a fixed price of Rs. 159.50 per share. The equity shares issued pursuant to the pre-IPO agreement shall be subject to lock-in after the completion of the IPO, as per SEBI regulations.

FHL had recently signed a pre-IPO agreement with Trinity Capital for allotment of 6 million shares for Rs. 870 million. The company had earlier signed two pre-IPO agreements in December 2006, and another in January 2007 for allotment of a total of 4 million shares for Rs. 560 million.

Subsequent to this and previous pre-IPO investments, the number of equity shares to be issued to the public in the IPO will be further reduced to the extent of the number of equity shares issued in the pre-IPO investments.

Commenting on the development, Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare and Escorts Heart said, "We are happy to welcome VASCO as an investor in Fortis. Last year, McKinsey helped us create our vision, mission and growth strategy for the next 5 years and in the process, have gained an understanding of our organization and the opportunity in the healthcare sector. We hope to benefit from and build on this association."

Mc Kinsey is a management consulting firm that advises on growth and other strategy. It has 86 locations in 46 countries which are linked by industry and functional practices that concentrate on the topics of interest to its clients wherever they do business. Since 1993, the India office has served several companies, nonprofits, and governments on issues ranging from enhancing operational efficiency to charting an India strategy. In 2002, CII had commissioned McKinsey to do a study on the healthcare sector in India. The study is considered to be an important industry reference document.

*based on the number of hospital beds according to CRIS-INFAC Report 2005.

FHL currently has a network of 11 hospitals primarily in North India and 16 satellite and heart command centers (including one heart command center in Afghanistan ). The hospitals include multi specialty hospitals, as well as super-specialty centers providing tertiary and quaternary healthcare to patients in areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care. The hospitals that FHL manages include Fortis Healthcare la Femme, a "boutique" style hospital that focuses on women's health and maternity care.

The Book Running Lead Managers to the issue are JM Morgan Stanley Private Limited, Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited.

About the Company

FHL, a Ranbaxy promoter group company, was incorporated in the year 1996. Fortis Healthcare Limited was founded on the vision of creating an integrated healthcare delivery system. Based in Delhi, FHL, which acquired Escorts Heart Institute and Research Centre Limited in September 2005, has operations in Delhi, Noida, Mohali (Chandigarh), Amritsar, Faridabad, Raipur and Srinagar. FHL has a network of 11 hospitals with an installed bed capacity of approximately 1,790 beds and has performed more than 5,000 open heart surgeries, 5,000 angioplasties and 15,000 angiographies in the last fiscal year.*

*on a pro forma basis taking into account the Escorts hospitals acquisition, the IHL acquisition and the OBPL acquisition.

Disclaimer:

The Company is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with the SEBI. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at www.jmmorganstanley.com, www.citibank.co.in and
www.kotak.com

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk Factors" of the aforementioned offer document.

This press release is not an offer for sale within the United States of any equity shares or any other security of Fortis Healthcare Limited. Securities of Fortis Healthcare Limited, including any offering of equity shares, may not be offered or sold in the United States absent registration under U.S. securities laws or an exemption from the registration requirements under such laws. The proposed offering of Fortis Healthcare Limited securities described in this press release has not been and will not be registered under U.S. Securities laws, and accordingly, any offer or sales of these securities may be made only in transactions exempt from registration.