Blackstone to partner with Gokaldas Exports

Bangalore, August 20, 2007: Gokaldas Exports Ltd., India's largest garment manufacturer and exporter, and The Blackstone Group today announced a partnership to work together to make Gokaldas a global leader in apparel industry.

As part of this agreement, Blackstone would acquire a 50.1% stake in the company from the Promoters. The founder promoters would continue to lead the Company with Mr. Madanlal Hinduja as the Chairman, Mr. Rajendra Hinduja as the Managing Director and Mr. Dinesh Hinduja as the Executive Director. Per SEBI regulations, this transaction triggers an open offer by Blackstone to the public shareholders of Gokaldas for an additional 20% of the Company's outstanding shares. Subject to regulatory approvals, Blackstone would invest $165 million (including open offer) and have representation on the Board of Directors.

Bangalore, India based Gokaldas Exports was incorporated in 1979 and today has 47,000 employees in 46 state-of-the-art manufacturing facilities with a system capacity to produce and export 2.5 million garments a month. Gokaldas produces highly customized apparel for leading US and European brands, with strengths in fashion and in-house design. Gokaldas is listed in India on the Bombay Stock Exchange (ticker symbol GOKALDAS) and the National Stock Exchange (ticker symbol GOKEX).

Commenting on the transaction, Mr. Rajendra Hinduja said, "With its global reach and deep relationships, Blackstone is an ideal partner to help us realize our vision of building a global industry leader." Mr. Hinduja added, "Blackstone is a long-term partner and intends to work with us to deepen our customer relationships and accelerate our growth plan. With Blackstone's relationships across the world, our customer profile is likely to get a significant impetus. This is likely to take the company to a higher growth trajectory."

Mr. Akhil Gupta, Chairman and Managing Director, Blackstone Advisors India Pvt. Ltd., said "Gokaldas is the leading Company in India in an industry that has seen significant growth in the Asian region post the elimination of the garment quota regime in 2005. This favourable industry dynamic combined with our highest regard for the management team of Gokaldas Exports were key factors in our decision to enter into this partnership. We are looking forward to using our global network in contributing to the growth of the Company in a meaningful way."

Kotak Investment Bank acted as the exclusive financial advisor for this transaction and is the manager to the open offer being made by Blackstone.

The Blackstone Group: The Blackstone Group is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at http://www.blackstone.com