Fortis inks agreements for pre-IPO investment of $33mn

MUMBAI, December 5, 2006: Fortis Healthcare Limited, one of the largest private healthcare companies in India*, today announced that it has signed definitive agreements (the "pre-IPO agreements") with (i) Quantum (M) Limited ("Quantum"), and (ii) Blue Ridge Limited Partnership and Blue Ridge Offshore Master Limited Partnership (collectively "Blue Ridge") regarding a pre-Initial Public Offer ("IPO") investment in the equity shares of the Company.

As per the terms described in the pre-IPO agreements, a maximum of 5.96 million equity shares will be issued to each of Quantum and Blue Ridge (totaling 11.92 million equity shares) at a price equal to the IPO price, for an aggregate amount up to US$ 33.33 million. The equity shares to be issued to Quantum and Blue Ridge shall be subject to lock-in after the IPO, as per SEBI regulations.

The Company had filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India ("SEBI") on September 29, 2006 with its proposal to access the capital market with its IPO of 56,666,633 equity shares through the 100% book-building process to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Subsequent to this pre-IPO investment, the number of equity shares to be issued to the public in the IPO would be reduced to the extent of the number of equity shares issued to Blue Ridge and Quantum. According to the Draft Red Herring Prospectus filed with SEBI, the Company has left a provision of a maximum of 17,884,614 equity shares for a pre-IPO placement.

Commenting on the development, Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare and Escorts Heart said, "We are overwhelmed at the response and the keen interest shown in the pre-IPO offer. This investment benchmarks an encouraging value range for our Company." He added, "It reaffirms faith in the evolution of the Indian Healthcare sector and confidence in the Fortis brand as a leading healthcare provider."

Fortis Healthcare Limited currently has a network of 12 hospitals primarily in North India and 16 satellite and heart command centers (15 in hospitals across the country and one heart command center in Afghanistan).

The hospitals include multi specialty hospitals, as well as super-specialty "centers of excellence" providing tertiary and quaternary healthcare to patients in key areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care. Besides these, the company also manages Fortis La Femme, a "boutique" style hospital that focuses on women's health and maternity care.

The Book Running Lead Managers to the issue are JM Morgan Stanley Private Limited, Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited.

About the Company

Fortis Healthcare Ltd. (FHL), a Ranbaxy promoter group company, was incorporated in the year 1996. Fortis Healthcare Limited was founded on the vision of creating an integrated healthcare delivery system. Based in Delhi, FHL, which recently acquired Escorts Heart Institute and Research Centre Limited, has operations in Delhi, Noida, Mohali (Chandigarh), Amritsar, Faridabad, Raipur and Srinagar.

Fortis Healthcare Limited has a network of 12 hospitals with an installed bed capacity of 1,890 beds. We performed more than 5,000 open heart surgeries, 5,000 angioplasties and 15,000 angiographies in the last fiscal year.* Fortis Healthcare Limited is one of the largest private healthcare companies in India, based on the number of hospital beds according to information provided by CRIS-INFACs reports published in 2005.