Suzlon secures agreement with Areva on REpower

"� Suzlon and Areva decide on standstill to end the bidding contest

"� Areva agrees to vote in accordance with Suzlon's proposals subject to customary minority protection

"� Areva is granted a guaranteed exit of its shareholding in REpower at its discretion

"� Suzlon and Areva expect to extend their relationship in the area of transmission and distribution

Mumbai/Hamburg, 24 May 2007: Suzlon Energy Ltd. (Suzlon) and Areva have signed a binding agreement governing a framework regarding Suzlon and Areva's shareholding in REpower. With this the bidding contest between Suzlon and Areva comes to an end.

The competition for REpower had started when Suzlon announced a competing public offer on 9 February 2007. Suzlon is supported in its bid by REpower's long-standing shareholder Martifer.

Mr Tulsi Tanti, Chairman & Managing Director of Suzlon, comments "We are delighted with the development. Given our arrangement with Areva we now directly and through voting pool agreements already control over 60% of REpower's capital and over the next one week will also know how many shareholders have finally tendered into our offer. We have the full support of REpower Management Board in making REpower grow faster and stronger and developing the offshore potential".

Furthermore he emphasizes "With this acquisition Suzlon has emerged as a true global player with a strong footprint across all the key wind markets, a geographically diversified manufacturing base, turbine and component level R&D centers in Europe and the most vertically integrated company in this sector with significant manufacturing presence in low cost countries like India and China. We have developed a differentiated business model successfully combining domestic organic growth with significant acquisitions each of which strengthen either our technological platform (Hansen) or our market reach and product suite (REpower's access into Europe and offshore business)."

Commenting on the Cooperation Agreement reached with Areva, Mr Tanti said "We expect Areva will continue to support the wind industry and growth of REpower. We also expect to extend our relationship with Areva in areas of T&D where they have global leadership."

Andre Horbach, Group CEO Suzlon, commenting on the transaction said "REpower is an extremely strategic asset and we have looked forward to this day for a fairly long time. The company is a highly focused technology player with very strong R&D and the capability to develop reliable and efficient products. This is clearly demonstrated in their commercially proven off-shore wind turbine products. The management has the right platform to really deliver the true potential of this business and we will work closely to propel REpower into leadership position in its key markets by supporting it with reliable and cost efficient Supply Chain, building the next generation of machines by integrating turbine R&D with component design and technology.  REpower will also benefit from the cooperative strength of its strategic shareholders."

Commenting on the occasion Aditya Sanghi, Country Head "� Investment Banking, Yes Bank Ltd, advisor to Suzlon said "This transaction is yet another example on the rise of Indian entrepreneurship and the keen desire of Indian companies to globalize. This is only the second contested acquisition by an Indian company and we were up against one of the most formidable engineering companies in the world with a significantly greater financial firepower. Despite this we achieved a successful and very desirable outcome. This will be a landmark transaction for several reasons but more importantly for the innovative financial structuring leading to material transaction cost savings for Suzlon."

Mr. Stefan Meine, Director of ABN AMRO Corporate Finance and also advising Suzlon, adds "This is one of the first contested offers in the German market and the largest Indian-German transaction to date. We at ABN AMRO feel very honored to have contributed to this great achievement for our client and for the global wind industry".

Suzlon is advised by a team spearheaded by Mr. Aditya Sanghi of Yes Bank (India) and Stefan Meine of ABN AMRO. A Linklaters team led by Dr Klaus-Marinus Hoenig and Dr Rüdiger Thiele is advising Suzlon Energy Ltd on all legal matters relating to this takeover offer.

About Suzlon Energy: Suzlon Energy, market leader in Asia and the world's fifth largest wind turbine manufacturer in terms of market share, offers customers total wind power solutions including consultancy, R&D, manufacturing, operations & maintenance services.

Not even on the list of the world's Top 10 wind-turbine manufacturers as recently as 2002, Suzlon passed Siemens of Germany last year to become the fifth-largest producer by installed megawatts of capacity. It is surpassed only by the market leader, Vestas Wind Systems of Denmark, as well as General Electric, Enercon of Germany and Gamesa Tecnológica of Spain.

On the back of the globally increasing demand for wind energy and its competitive advantage of having control over its supply chain through backward integration Suzlon plans to further increase its global presence. Suzlon is India's leading manufacturer of wind turbine generators and has successfully expanded into China, the United States, Belgium, Denmark, Australia and Germany. Last year, Suzlon acquired Hansen Transmissions in Belgium, a leading producer of gear-boxes. Suzlon plans to create 300 news jobs at Hansen during the following years.

Suzlon's R&D centres are located in Germany, in the Netherlands and in India. The international business of Suzlon is managed by Suzlon Energy A/s out of Aarhus in Denmark, which in turn has country headquarters in Beijing, Chicago and Melbourne for China, United States and Australia respectively. The Group Management office of Suzlon is located in Amsterdam, the Netherlands.

Suzlon's quality systems have been certified by Det Norske Veritas (DNV), one of the leading global registrars of quality systems, as being in compliance with the requirements of ISO 9001:2000. Please visit: www.suzlon.com

About REpower Systems: With gross revenues of Euro 461,6 million in financial year 2006, REpower is one of the leading players in the fast-growing worldwide wind energy sector, specializing in high output turbine technology particularly suitable for off-shore turbines. Aside from being one of the leading players in its home market of Germany, REpower has established a strong presence in a number of key European markets and is pursuing promising development plans in China, India and the USA. Please visit: www.repower.de