Ranbaxy Q2 global sales at $395mn, up 25%

Gurgaon, Haryana, India - July 19, 2007: The Board of Directors of Ranbaxy Laboratories Limited (RLL) at their meeting held today took on record the un-audited results for the quarter ended June 30, 2007. The Company also announced the consolidated global results for the quarter (Q2) and half year (H1) ended June 30, 2007.

Key Operational Highlights for the Quarter

* Consolidated Revenues at USD 395 Mn, records growth of 25%. In rupee terms sales grew by 12% to Rs.16,238 Mn.

* Net Profit at USD 65 Mn, records growth of 142%. In rupee terms Net Profit at Rs. 2,662 Mn, up 118%. Excluding foreign exchange gains /losses on translation, Net Profit was at Rs 1,604 Mn, +53% versus trailing quarter.

* Earnings before Interest, Depreciation, Tax & Amortization (EBIDTA) at USD 55 Mn (Rs 2265 Mn), reflects margin to sales of 14%. Excluding foreign exchange gains/losses on translation, EBIDTA margins were at 16.4% to sales.

* Sales in USA at USD 95 Mn, a growth of 7%. Base business growth in USA records increase of 37% (without sales of First-to-File products)

* Sales in Europe register growth of 55% at USD 86 Mn; Represent 22% to global sales ( Q2 '06: 17%).

* Emerging Markets continue their robust growth momentum; Comprise 54% to global sales and record a 44% growth in the quarter.

* Company launches Pravastatin 80 mg tablets in USA with 180 days marketing exclusivity and garners ~ 50% prescription market share.

The molecule has a market size of USD 209 Mn. (Source : IMS).

* Company acquires Dermatology portfolio of Bristol Myers Squibb (BMS) in USA, enhances presence in the specialty dermatology segment by capitalizing on its existing strong franchise through Sotret, its leading Isotretinoin brand.

* The Norwegian Court of Appeals rules in Ranbaxy's favor in its case against Pfizer on key Norwegian patents of Atorvastatin. Clears the way for product launch in Norway.

Consolidated Results (Ranbaxy Laboratories Limited and Subsidiaries) Quarter ended June 30, 2007(Q2)

For Q2, the Company achieved Sales of Rs. 16,238 Mn [USD 395 Mn] (2006: Rs. 14,464 Mn, USD 317 Mn), recording a growth of 12%. Profit before finance cost, depreciation, tax and amortization was Rs. 2,265 Mn [USD 55 Mn] (Rs. 2,648 Mn, USD 58 Mn), reflecting an EBITDA margin of 14% to sales. Excluding the foreign exchange gains/losses on translation EBITDA margins stood at 16.4% to sales. Profit before tax stood at Rs. 3,400 Mn [USD 83 Mn] (Rs. 1,559 Mn, USD 34 Mn), an increase of 118%. Profit after tax excluding the foreign exchange gains / losses on translation was at Rs 1,604 Mn [USD 39 Mn] (Rs 1,496 Mn, USD 33 Mn). Profit after tax was at Rs. 2,662 Mn [USD 65 Mn] (Rs. 1,223 Mn, USD 27 Mn), recording an increase of 118%.

Earnings per share on a fully diluted basis were Rs. 4.23 (2006: Rs. 3.24).

Half year ended June 30, 2007 (H1)

For H1, the Company recorded Sales of Rs. 31,882 Mn [USD 750 Mn] (2006: Rs. 27,217 Mn, USD 604 Mn), registering a growth of 17%. Profit before finance cost , depreciation, tax and amortization was Rs. 4,173 Mn [USD 98 Mn] (Rs. 4,071 Mn, USD 90 Mn), reflecting an EBITDA margin of 13% to sales. Excluding the foreign exchange gains/losses on translation, EBITDA margins were at 15% to sales. Profit before tax stood at Rs. 5,042 Mn [USD 120 Mn] (Rs. 2,412 Mn, USD 54 Mn), an increase of 109%. Profit after tax excluding the foreign exchange gains / losses on translation was at Rs 2,650 Mn [USD 62 Mn] (Rs 2,232 Mn, USD 50 Mn). Profit after tax was at Rs. 3,949 Mn [USD 94 Mn] (Rs. 1,941 Mn, USD 43 Mn), recording an increase of 104%.

Earnings per share on a fully diluted basis were Rs. 6.75 (2006: Rs. 5.15).

Commenting on the business results, Mr. Malvinder Mohan Singh, CEO and MD, Ranbaxy, said, "A focus on branded generics, accelerated generic substitution and the fundamental strength of our base business across key markets, characterize the strong performance for the quarter. This reaffirms our faith in our underlying strategy and gives us the confidence that the ensuing quarters will be progressively better."

Global Sales

For Q2, global sales registered an increase of 25% to USD 395 Mn. The Company continued its focus on enhancing its presence in the high growth emerging markets which primarily comprise of the branded generic segment. For the quarter, the emerging markets contributed 54% to total sales recording a robust growth of 44% while the developed markets grew 16% (40%to total sales). India, Russia, Ukraine, Romania and South Africa continued to be the primary drivers of performance in the emerging markets, while Europe contributed significantly to the growth in the developed markets.

For H1, global sales were at USD 750 Mn, recording a growth of 24%. The emerging markets contributed 54% to total sales and registered a strong growth of 48% while the developed markets at 39% to total sales recorded an increase of 12%.

International dosage forms sales for the quarter were at USD 283 Mn, + 33% while the same in H1 stood at USD 542 Mn, an increase of 32%. The contribution of international dosage forms sales to the total sales in the quarter was at 72% as against 67% in the corresponding previous period.

North America

Sales in North America were at USD 102 Mn, recording an increase of 12% for the quarter. For H1, North America recorded sales of USD 193 Mn, a growth of 7%.

USA clocked sales of USD 95 Mn, a growth of 7% for the quarter. For H1 sales stood at USD 180 Mn, a marginal increase of 2%. Excluding the impact of the products launched with a 180 days marketing exclusivity in the current and corresponding previous period, the sales in USA grew 37%, reflecting the encouraging performance in the Company's base business portfolio.

Following the successful launch of Simvastatin 80 mg product in 2006, Ranbaxy launched Pravastain 80 mg with a 180 days marketing exclusivity in June 2007. The Company has garnered an approximately 50% prescription market share in the Pravastatin 80 mg market since the launch. The Company believes that it has a First-to File (FTF) status on approximately 20 Para IV ANDA filings representing a market size of ~ USD 26 Bn valued at innovator prices. Ranbaxy continues to pursue a strategy to most effectively leverage and monetize this potential pipeline of FTF products in order to derive maximum commercial benefits from these, subject to regulatory & legal clearances.

During the quarter, Ranbaxy received 6 ANDA approvals, 3 final approvals and 3 tentative approvals. Final approvals were received for Pravastatin Tablets 10/20/40/80 mg, Zolpidem Tartrate Tablets 5 / 10 mg, and Loratadine Oral Tablets 10 mg. Tentative approvals were received for Fexofenadine Hydrochloride Tablets 30/60/180 mg, Amlodopine Besylate Tablets 2.5/5/10 mg and Tamsulosin Hydrochloride capsules 0.4 mg.

With its strategy of alliances and partnerships gathering momentum, Ranbaxy will be introducing Hydroxychloroquine Sulfate Tablets USP - 200 mg under its pact with a strategic partner, which received approval for the product during the quarter. This will be the third product to receive US FDA approval for marketing under Ipca's alliance with Ranbaxy after Furosemide and Atenolol tablets.

The branded business grew 36% over the corresponding previous period. The growth was primarily led by the strong performance of the Company's Isotretinoin brand - Sotret, which extended its market leadership position, gaining a 42% market share (as against 36% in Feb. 2007). In the 30 mg strength of the product, Ranbaxy enjoys 61% market share.

In May 2007, Ranbaxy acquired the U.S. rights to 13 dermatology products from Bristol-Myers Squibb Company (BMS). These well established proven brands from the key therapeutic areas of Dermatitis, Psoriasis, Anti-fungal, Scabies, and Acne, will strengthen and extend Ranbaxy's franchise in the dermatology area. The acquisition will leverage the Company's existing branded derma business and will considerably enhance it's portfolio in this niche therapeutic segment in the US market.

The Company's business in Canada recorded sales of USD 7 Mn for the quarter and USD 13 Mn for H1. The performance was driven by the strong sales of Fentanyl, Citalopram and Ciprofloxacin products. Fentanyl commands a 56%

market share and is the leader in its category. Ranbaxy is currently ranked 9th with a 1.8% share in the generics market and a 13.6% share in its represented molecules. (Source: IMS ).

The Company received approval to manufacture & market Ran-Pravastatin Tablets 10/20/40 mg from Health Canada, Therapeutic Products Directorate (TPD). Total annual market sales for Pravastatin in Canada stood at $ 70 Mn. (Source :IMS).

Europe

Ranbaxy's sales in Europe stood at USD 86 Mn, a growth of 55% over the corresponding quarter of the previous year. For H1, sales were at USD 179 Mn, recording a growth of 66%. Europe, a key constituent in the Company's overall growth plans, represented 24% to total sales in H1 2007 as against 18% in the corresponding period of the previous year. The European region is a mix of mature and newer emerging generic markets and provides a good opportunity to capitalize on the increasing generic substitution led by governments efforts to contain their healthcare costs through the supply of more affordable generic medicines. Going forward, Ranbaxy's pan-European presence in 23 of the 27 EU countries with a well established marketing & regulatory infrastructure, augurs well for deriving substantial benefits

through a strong and robust product flow.

Key Country Highlights in EU:

The Company's business in Romania recorded sales of USD 29 Mn for the quarter, while for H1, sales stood at USD 66 Mn. The market share of the Company increased from 5.4% in Q1 2007 to 5.5% in May 2007, signifying the Company's strengthening presence in this fast growing market.

During the quarter, sales in UK were at USD 13 Mn, recording an increase of 42%. For H1, sales were at USD 25 Mn, a growth of 57%. The performance in UK continues to be robust with key products such as Simvatstain, Pravastatin and Gabapentin contributing to growth. The Company's branded businesses, primarily the respiratory franchise, has registered an encouraging performance in the quarter.

Sales in Germany increased by 74% to USD 12 Mn during the quarter while H1, sales stood at USD 22 Mn, recording a 39% rise. The performance in Germany is driven by sales of products listed with AOK, Germany's largest health insurance Company, representing 35% of all health insurance policy holders in the country. In the quarter, the Company also listed its products with two other insurance companies, including VdAK/AEV, an important and large customer.

Rest of Europe, comprising of Spain, Italy, Poland and other countries in Central & Eastern Europe, recorded sales of USD 16 Mn during the quarter, a growth of 35% over the corresponding previous period. For H1, sales were at USD 38 Mn, an increase of 41%. The growth in Rest of Europe was led by robust performances in all the markets, including Poland, the Benelux and Baltic countries, Spain & Italy.

Asia-Pacific & CIS

The quarter saw Asia Pacific and CIS region recording a combined sales of USD 134 Mn, recording a growth of 24%. For H1, sales were at USD 249 Mn, +28%, representing 33% to total sales. The key markets that contributed to growth in the region were India and the CIS markets, which together accounted for 78% to the total sales in the region and registered a growth of 23%. In H1 2007, Russia with USD 20 Mn recorded a growth of 45%, delivering a healthy performance. Other countries that contributed to growth included China and Malaysia.

India

For the quarter, Ranbaxy's India operations recorded sales of USD 79 Mn, +19%. H1 sales stood at USD 144 Mn, up 22%. The growth was led by the Chronic & Acute businesses recording a growth of 30% and 16% respectively. During May 2007 MAT period, Ranbaxy achieved a market share of 5.04%. Contribution of the Chronic therapy portfolio to total sales stood at 24% (Moving Quarter May 2007) as against 23% over the corresponding period last year. This is in line the Company's strategy to increase its focus in the Chronic therapeutic areas which demonstrate higher growth than the

non-chronic segments.

Ranbaxy continued to enjoy its market leadership position in the Penem's segment (Cilanem, Faronem), garnering a 26.5 % share of the market (Moving Quarter May 2007). Ranbaxy has 18 brands in Top 300 brands with 9 brands featuring amongst the Top 100 list. Amongst the new products introduced over last one year, three of Ranbaxy's brands - Soliten (Solifenacin, for treatment of overactive bladder), Gembax (Gemifloxacin, Quinolone) and Volitra (Topical NSAID

formulation) feature amongst the Top 30 brands of the Industry.

Reinforcing the Company's commitment in the Novel Drug Delivery System (NDDS) segment, Ranbaxy launched six NDDS products this year. The NDDS portfolio contribution to total India sales stood at 9% (Moving Quarter May 2007) and the Company remained among the top companies with 8% market share in this segment (MAT May, 2007).

In H1 2007, two novel formulations were introduced for the first time in world - Osovair (Formoterol+Ciclesonide) for treatment of Asthma and Ginkocer M (Ginkocer+Methycobalamine), a combination Nutritional supplement.

For Q2, Ranbaxy's Global Consumer Healthcare business recorded sales USD 9 Mn, a growth of 53% over the corresponding quarter of last year. For H1, sales were at USD 16 Mn, a growth of 39% over the corresponding period of

last year. The flagship brand, Revital continued its strong performance recording a strong growth of 45% (Source: MAT May '07 ORG-SSA) capturing a market share of 78 %, an increase of 6 percentage points over the corresponding previous period (ORG-SSA MAT May'07). The Company also launched Chericof Herbal in June, 2007.

Rest of the World (RoW)

Africa, recorded sales of USD 31 Mn, up 59% in the quarter,. For H1, sales were at USD 55 Mn, a growth of 44%. The key countries in Africa contributing to growth were South Africa, Nigeria, Egypt and the countries in Central and South East Africa. Excluding the ARV business, sales in Africa recorded a growth of 68 % in the quarter and 47 % for H1 2007.

South Africa, the largest country for the Company's business in the African continent, recorded sales of USD 13 Mn in the quarter, a growth of 82%. (H1 2007 : USD 20 Mn, +44%). With the closing of the Be-Tabs acquisition in May 2007, the financials of the acquired Company have been incorporated accordingly. The integration of Be-Tabs, the Company's acquisition of the 5th largest branded generics company in South Africa is progressing per plan. Co-promotion by both Be-Tabs and Ranbaxy of the combined product basket has started and plans have also been initiated for marketing of the Be-Tabs products through the existing Ranbaxy field force in other African countries.

The Latin America region recorded sales of USD 18 Mn, a growth of 71%. For H1 sales were at USD 26 Mn, + 35%. Brazil remains a key market for the company where it continued to maintain its No 6 position in the generics segment.

Research & Development

Ranbaxy's orientation in drug discovery and drug delivery systems continued with vigour and purpose. During the Quarter, the Company filed 4 ANDAs with the US FDA and received approval for 6 ANDA's (3 final and 3 tentative)

taking the cumulative filings, as on date, to 203 with 114 approvals. In the European Union (EU), 7 national filings in 6 Reference Member States (RMS) were made and the Company received 10 approvals in 4 RMS.

The anti-malarial molecule, RBx-11160, successfully completed Phase II studies, with the compound indicating good activity against malarial parasites. The safety and tolerance studies with the combination product (RBx 11160 + piperaquine) are currently ongoing.

The two programs in the respective areas of Chronic Obstructive Pulmonary Disease (COPD) and anti-infective, identified under the GSK alliance, are progressing as per plan and the team has identified a development

candidate for one of the programs.

Earlier this month, Ranbaxy entered into a collaborative research agreement with the International Centre for Genetic Engineering and Biotechnology (ICGEB) and the Department of Biotechnology (DBT), New Delhi, in the area

of New Drug Discovery. Under the alliance Ranbaxy and ICGEB will work towards developing novel agents for the treatment of dengue, and DBT will participate as the funding partner. A joint research committee, with representation from all the partnering organizations, will monitor and direct the course of the research.

Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries.