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Shareholders Approve Merger of Media & Telecom Businesses Under Hinduja Finance
Thursday 28 September, 2000

The shareholders of Hinduja Finance, in the extraordinary general meeting held on 28th September, 2000, unanimously approved the mergers of Richman Investrade, Hinduja Telecom and Melody Trading with the company. These mergers would lead to the company acquiring majority control in the group's media businesses (IndusInd Media & Communications Ltd., Cable Video India Ltd, IndusInd Entertainment Limited) and a significant stake in the group's telecom The shareholders of Hinduja Finance, in the extraordinary general meeting held on 28th business (Fascel Ltd). The net worth of Hinduja Finance will increase from Rs. 149.09 Crores to Rs. 323 Crores

IndusInd Media & Communications Ltd (IMC) has over 4 million cable subscribers. Recently, Intel has invested US $ 49.23 million for an effective stake of 3.3% of IMC giving it a valuation of US $ 1.5 billion. Cable Video India Limited has the largest Hindi movie library in the country with over 1800 movies under its fold. IndusInd Entertainment Ltd has a bouquet of city specific cable channels covering major cities and is a specialist developer of city specific content. Fascel Ltd. provides cellular telephony services in Gujarat state and is the single largest state circle operator in India. In addition, Richman Investrade merger will also make Hinduja Finance the owner of World/Asian satellite rights for 260 Hindi films.

The Internet business is already under Hinduja Finance through its subsidiary In2Cable.Com India Ltd. The company has recently completed the merger process of Ashok Leyland Information Technology Ltd., the Group's IT company with itself.

Mr. S. Solomon Raj, Vice Chairman, Hinduja Finance said "These mergers will facilitate implementation of convergence strategy of HF and thus add more value to the shareholders. The company also proposes to change its name to reflect its new positioning. This is in line with the recommendations of Andersen Consulting who have advised that Hinduja Finance be re-positioned as a Operating Information Technology company and an active parent to the Group's affiliates in the Technology, Media and Telecom Sectors providing strategic direction."

The Management of Hinduja Finance has selected "Hinduja TMT Limited" as the new name for the company from the numerous entries received in a naming contest held among over 1000 employees under the Hinduja Finance Group.

The company has initiated the process for changing its name and would approach Reserve Bank of India and other relevant authorities for obtaining clearance shortly.

For details please contact:
Ms. Nina Mamnani,
Vice President (Corporate Communications)
Phone No. 4960707 Fax: 4974208
Mobile: 9821022699