New Delhi, 18th October 2005

Max Telecom Ventures Ltd. (MTVL), a subsidiary of Max India today announced its decision to divest its entire 3.16% stake in Hutchison Essar Telecom to Essar Teleholdings Ltd. for an all cash deal aggregating Rs. 657 crore at a sale price of Rs. 607 per share. MTVL today signed a MoU in this regard. The proposed sale is subject to ratification and approval by the Board of Max India Ltd.

Max India Ltd. holds 60.8% stake in MTVL while 39.2% is held by IL&FS Trust Company Ltd.

Mr. B. Anantharaman, Jt. Managing Director, Max India Ltd. said, "Hutchison Essar Telecom has created tremendous value for its stakeholders. By exiting the investment, MTVL has optimized value creation for its shareholders." "Max India takes great pride having created a fundamentally strong telecom business in Mumbai, which now forms the backbone of Hutchison Essar Telecom." "Divestment of this stake is a strategic decision and will mark a complete exit of Max India from the telecom sector ", he added.

About Max India Limited

Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare and Life Insurance. Max also maintains interests in Clinical Research, Telecom services and Specialty Plastic Products businesses.

For further information contact :

Deep Ghatak
Manager- Corporate Communications
Max India Limited
Tel: 26322776 (D); 26933610 Ext (192)
Mobile: 98182 33816
E Mail: dghatak@maxindia.com