New Delhi, 6th June 2005

Max Healthcare Institute Ltd., a subsidiary of Max India Ltd. today announced its decision to issue additional equity shares to Warburg Pincus. The current issue together with the first round of funding by Warburg Pincus represents a 23% stake in the fully diluted equity base of the Company. The current round, totaling Rs. 115 crore is for 28.75 million equity shares of Rs. 10/- each at an issue price of Rs. 40 per share. The first round of investment in January 2005 of Rs. 25 Crore was made at Rs.13.25 per share. Max India Ltd, the parent company holds 70% stake in the fully diluted equity base of the Company. Warburg Pincus' total investments in Max Healthcare stands at Rs. 140 Crore.

Max India Ltd. also announced that Warburg Pincus has completed its balance investment of Rs. 119 Crore in the parent company taking its total investment to Rs. 200 crore following recent receipt of FIPB approval. Warburg Pincus now holds 10 million equity shares in Max India Ltd. representing 28.7% stake in the fully diluted equity base of the company.

With the above infusions, Warburg Pincus has invested Rs. 340 Crore in the Group, over the last 6 months.

No financial advisors were involved for these transactions and Max India Ltd managed the same in house. AZB Partners acted as the legal advisors to Max.

Mr. Analjit Singh, Chairman of the Max Group said, "Raising additional capital at this stage of build-out of the business was a part of our long-term financial plan to support the capital intensive healthcare business. Max has always partnered with the best in class, such as now with Warburg Pincus who are the highest pedigree private equity investor internationally. Max believes in service excellence and financial strength and this partnership would therefore, accelerate our growth plans in the healthcare provider sector to emerge as leaders in this area." Speaking on the development Mr. Charles (Chip) Kaye, Co-President, Warburg Pincus LLC said, "Our investments in Max India and Max Healthcare reflect our belief in the underlying strengths of the businesses and the excellent growth opportunities that exist in the Indian market. Both businesses have already established a strong operating platform and demonstrated success. Our increased exposure is a continued endorsement of the growth potential of the Max Group and the credentials of its highly competent management team."

Mr. B. Anantharaman, Jt. Managing Director, Max India said, "With the current round of fund infusion into Max Healthcare, the Company has now fully tied up its long term funding needs for the Rs. 600 Crore Healthcare project." "The value proposition of our Healthcare business is unique and qualitatively superior to other healthcare business models in the country. The current equity infusion in the company highlights the value created by this business for its stakeholders, in a very short time span. ", he added.

About Max Healthcare

Max Healthcare is India's first comprehensive provider of standardized, seamless, integrated and world-class healthcare services. It is committed to the highest standards of medical and service excellence, patient care, scientific knowledge and medical education. Focused on the National Capital Region (NCR) in the North in the first phase, Max Healthcare has currently 7 facilities. Dr. Max Clinics in South Delhi; Max Medcentre in Panchsheel Park; Max Hospital, NOIDA; Max Hospital, Pitampura in North Delhi; Max Hospital, Patparganj in East Delhi, which was recently commissioned and Max Devki Devi Heart and Vascular Institute, Saket which has been fully operational from January 2005. In addition to the above Max Super Speciality Hospital in Saket and Max Hospital Gurgaon are scheduled to open in Q1 of 2006.

Max Healthcare has a medical collaboration with Singapore General Hospital in areas of training, medical practices and research. Max Healthcare has over 400 leading doctors, 280 corporate clients and a patient base in excess of 2,25,000. By 2007, it will have over 1400 patient beds and 8 Hospitals in the NCR; emerging as a dominant player in North India.

About Warburg Pincus

Warburg Pincus is a global leader in private equity investment. Since 1971 the firm has invested over US$12.2 billion in 450 companies in 29 countries and currently has approximately US$9 billion under management and about US$4 billion available for investment. Throughout its more than 30 year history, Warburg Pincus has invested in a wide range of industries including information and communication technology, business services, energy, financial services and technologies, healthcare and life sciences, media and real estate; and at all stages of a company's life cycle.

Warburg Pincus is the largest international private equity investor in India with investments of over US$1 billion in the country. The firm's key portfolio companies include Bharti Tele-Ventures, Gujarat Ambuja, Kotak Mahindra Bank, Max India, Moser Baer, Nicholas Piramal, Sintex Industries, WNS Global Services and Vcustomer.

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 :
Neeraj Basur
Vice President - Corporate Finance
Max India Limited
Tel: 26933615 (D); 26933610 Ext (126)
Mobile: 98108 46989
Fax: 26933619
E Mail: nbasur@maxindia.com