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Hinduja Finance - ALIT Merger Thrust towards 'TMT' (Technology, Media and Telecom)

February 18, Mumbai - Hinduja Finance Board today approved the merger of Ashok Leyland Information Technology Ltd. (ALIT) with Hinduja Finance (HF). 0n the basis of valuations carried out by A.F. Ferguson & Company and Shah & Company, the ratio of shares has been fixed at one share of Hinduja Finance (HF) for twenty shares of Ashok Leyland Information Technology Ltd. (ALIT). The equity of HF will increase nominally by about Rs.1 crore to Rs.23.99 crores. The Company is almost debt free and has no NPAs.

ALIT provides software services globally with principal focus on E-commerce and Web based applications, ERP solutions, Banking & Finance Software Solutions, Euro conversion, Client Server applications, Telecommunications , Health Care, and Insurance ALIT's international Clientele includes major U.S. Companies like Time Warner, Citi Group, Union Bank of California, Seer Technologies, Platinum Technology Inc., and Total System Services, in addition to several others spread over USA, In Europe - FIAT Group, Italy. It also has a wholly owned U.S. Subsidiary, ALIT Inc., with offices in New York & San Fransico and proposed offices in Chicago, Boston & Seattle.

At its last Board Meeting in January, the Directors had approved acquisition at par of 51% equity in the Group promoted IN2CABLE.COM (India) Pvt. Ltd. This company delivers internet on cable using the extensive cable networks of IndusInd Media and Communications Limited, which provides India's largest organised cable TV network to 4 million homes, with the first hybrid fibre co-axial backbone. It has already started delivery of internet on cable on a trial basis in Mumbai and will shortly provide service in other centres such as Bangalore, Delhi, Ahmedabad & Hyderabad. Negotiations are on with an international partner for its Joint Venture in this sector to be announced shortly.

Mr. Ashok P. Hinduja, Chairman of Hinduja Finance, articulated his vision for the company to focus on 'TMT' (an acronym coined by him for Technology, Media and Telecom). The move is to position the company's focus to be the leader of a sector comprising of I.T., Internet access and content, E- commerce, Infotainment media and Telecom. The technological convergence in these areas has led to a global paradigm shift to the new E-economy.

Mr. Hinduja stated that the company should take full advantage of the unique synergies that exist within the Group to catapult itself to the top of the emerging E- economy and the knowledge based business sector in India to further enhance shareholder value. The merger with ALIT is the starting point for HF to optimise its participation in the convergence opportunities. HF will look at further acquisitions in these sectors for rapid growth.