Alembic signs licensing agreement with UCB for NDDS

Mumbai, May 23, 2007: Alembic Limited, the Pharmaceutical major announced today that it has entered into a licensing agreement for its Novel Drug Delivery Platform for Keppra® XR (Levetiracetam Extended Release Tablets) with UCB.

Under the terms of the agreement, Alembic would receive milestone payments of 11 million U.S. dollars and royalty on future worldwide net sales of Keppra® XR subject to necessary legal and regulatory approvals. Phase III clinical trials on Keppra® XR, the once daily formulation of Keppra® are ongoing and results are expected in the fourth quarter of 2007. Keppra® is UCB's leading anti-epileptic drug which realised sales of 761 million euros (US$ 1 billion) in 2006.

Headquartered in Brussels (Belgium), UCB is a leading global biopharmaceutical company dedicated to the research, development and commercialization of innovative pharmaceutical and biotechnology products in the fields of central nervous system disorders, allergy/respiratory diseases, immune and inflammatory disorders and oncology. UCB focuses on securing a leading position in the severe disease categories. Employing more than 8,400 people in over 40 countries, UCB achieved revenue of 2.5 billion euro in 2006. UCB is listed on the Euronext Brussels Exchange.

The development of Levetiracetam XR marks a milestone for Alembic's NDDS Program. Few other systems are in advanced stages of development and are protected by suitable patents and will be shortly available for commercialization. A buoyant generic program also serves to bolster Alembic's presence in the regulated markets. With the current year's ANDA filings at three and expected filings at the rate of 12 "� 15 every year for the next three years.

About Alembic Limited: Established in 1907, the Rs. 700 crore Vadodara (Gujarat, India) based Alembic Ltd. is a leading pharmaceutical company in India. The company is vertically integrated with the ability to develop, manufacture and market pharmaceutical products, pharmaceutical substances and Intermediates. Alembic is the market leader in Macrolides segment of anti-infective drugs in India. 'Zero' (sugar free), Glycodin (cough syrup) and Althrocin (erythromycin estolate) are some of the leading brands for the company.

Alembic's manufacturing facilities are located in Vadodara and Panelav in Gujarat, and Baddi in Himachal Pradesh. The plant at Vadodara has the largest fermentation capacity in India. The Panelav facility houses both API (USFDA approved) and formulation manufacturing (to undertake US FDA inspection shortly) plants. The plant at Baddi, Himachal Pradesh manufactures formulations for the domestic and export market. The company has a state of the art Research Centre- BioArc- at Vadodara, to build its strength in chemistry and capitalize for the CRAMS business.