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Fortis Healthcare signs pre-IPO agreements for 4 million shares; Lord Bagri, Apurv Bagri of Metdist Group and Trinity Capital invest an aggregate amount of Rs 560 million

Fortis Healthcare Limited ("FHL"), one of the largest private healthcare companies in India*, today announced the signing of definitive agreements (the "pre-IPO agreements") for investment in the equity shares of FHL.

The first two pre-IPO agreements are for allotment of 1 million equity shares each to (i) Raj Kumar Bagri (Lord Bagri), and (ii) Apurv Bagri both of Metdist Group of Companies, (totaling 2 million equity shares). The third pre-IPO agreement is for allotment of 2 million shares to Trinity Capital(Eight) Limited ("Trinity"). The equity shares issued pursuant to the pre-IPO agreements, shall be subject to lock-in after the completion of the IPO, as per SEBI regulations.

Lord Bagri is the founder of the Metdist Group of Companies and the Honorary President of the London Metal Exchange (LME). Named "2002 Copper Man of the Year" by The Copper Club, Inc., he was awarded with the honour of the Commander of Most Excellent Order of the British Empire (CBE) in 1995 by Her Majesty the Queen of England. Mr. Apurv Bagri is the Managing Director of the Metdist Group of Companies and Member of the Board of the Dubai Financial Services Authority (DFSA). He is a visiting Professor at Cass Business School and a member of the Governing Council of the City University, London.

Metdist Group is a global metal trading firm based in London, U.K. and has a presence in UK, Malaysia, Thailand, China, UAE and India. The Group has been in business for over 30 years with a group turnover of over US$ 800 million in financial year 2006. The Group companies include Metdist, MetTube, Metrod, ASTA and an affiliate - Avigo Corp. Metdist is one of the eleven "Ring dealing" members of the London Metal Exchange (LME).

Trinity was created in 2006 for the purpose of investing in real estate and real estate related entities across India. On admission to the London Stock Exchange in April 2006, Trinity raised £250m of equity by way of an offer to institutional investors.

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

FHL had earlier signed two pre-IPO agreements in December 2006, wherein a maximum of 5.96 million equity shares will be issued to each of (i) Quantum (M) LImited and (ii) Blue Ridge Limited Partnership and Blue Ridge Offshore Master Limited (totaling to a maximum of 11.92 million equity shares) at an average price equal to the IPO price, for an aggregate amount up to US$ 33.33 million.

Subsequent to this and previous pre-IPO investments, the number of equity shares to be issued to the public in the IPO would 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 have these quality investors on board with the pre-IPO placement." He added, "A diverse range of investors are showing interest in the Indian healthcare sector and in Fortis."

Fortis Healthcare Limited currently has a network of 13 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

Fortis Healthcare Ltd. (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 recently acquired Escorts Heart Institute and Research Centre Limited, has operations in Delhi, Noida, Mohali (Chandigarh), Amritsar, Faridabad, Raipur and Srinagar. FHL has a network of 13 hospitals with an installed bed capacity of 1,890 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 and the IHL 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 transaction exempt from registration.