Shasun to set up new facilities in Piscataway, US

Chennai, January 28, 2008: Shasun Chemicals & Drugs Ltd; a leading Indian CRAMS and API exporting pharmaceutical company, today announced that it is setting up a process development facility in Piscataway (New Jersey), United States. The facility will be scaled to provide direct Active Pharmaceutical Ingredients (API's) development services in the pre-clinical and clinical trial stages to customers in North America and to extend backend support to the CRAMS partners in the same geography.

This development will further enhance and expand Shasun Chemical's current capacity to provide global clients a seamless range of services from cutting-edge R&D to large scale manufacturing and analytical development. As Piscataway is strategically located to serve the emerging markets; Shasun Chemicals will be better equipped to attract new clients and to expand its offering to its existing clients.

The first phase of this new facility will be operational from April 2008. The investments in this project are significant and represent the management's long-term financial commitment and the subsequent creation of 50 new, highly skilled jobs.

The Piscataway operations are expected to move into full capacity from October 2009; further growth and investments in the facility will be planned thereon.

Commenting on the development, Kevin Cook, Director (Operations), Shasun Pharma Solutions UK said; "The US facility will allow us to provide North American customers with a local service offering to compliment our existing sites in Europe and India."

Dr Michel Spagnol, Chief Technology Officer of Shasun continued; "The development will also enhance our position as the leading chemistry services provider with both eastern and western facilities."

Adds Mr. Vimal Kumar, Whole Time Director, Shasun Chemicals, "Shasun is rapidly increasing its global presence. Piscataway, which is in North-West United States, will help generate new opportunities for us to serve the rapidly expanding North American market. The new facility will also help us strengthen our global network that spans from the US West Coast to the European East."

About Shasun Chemicals & Drugs

Shasun Chemicals and Drugs Ltd., India is a premier service provider to the pharmaceutical industry. It was founded in 1976 and its headquarters are in Chennai, Tamilnadu, India. Shasun offers an integrated business model by offering services in research, development and manufacturing (including Contract Research and Manufacturing Services). With the maiden acquisition of business and assets of UK-based Rhodia Pharma through the wholly owned subsidiary Shasun Pharma Solutions Ltd. (SPSL), Shasun has now become a multi national company. SPSL has two manufacturing plants, in Dudley and Annan, both located in UK and has 12 commercial products under its belt and 14 molecules under phase II and phase III waiting for commercial approval and launch by its partners. The acquisition would also help Shasun develop a global presence in APIs, custom synthesis and contract manufacturing as the transaction includes all of Rhodia's development and custom manufacturing services catering to innovator and emerging pharmaceutical clients in US, Europe and Asia.