Vectra Grp buys majority stake in Czech truck firm

Mumbai, November 2, 2006: A consortium including Vectra Limited and the private equity arm of Belgian Bank KBC, and two other investors, has acquired a controlling stake of 92% in the Czech truck manufacturer Tatra a.s., through its purchase of 80.5% stake held by Terex Corporation of the U.S. The deal was approved by the Czech Anti-trust office UOHS on 4th September, 2006 and formalities of this acquistion were completed in the past two weeks.

Commenting on the acquisition Mr. R. K. Rishi, Chairman, Vectra Group, said, "With this acquisition, the Vectra Group has taken decisive and important strides towards creating a truly global scale business within the automotive sector domain of our multi-dimensional business portfolio. This acquisition is an important component of our strategy to build a global automotive business and will go a long way in creating a platform that enables us to pursue our vision of building the automotive business as one of the core businesses of the Vectra Group." Mr. R.K. Rishi is the Principal Executive of the Consortium and would also be the Chairman of the Supervisory Board at Tatra a.s.

Tatra a.s. employs 3100 people at the integrated manufacturing facility at Koprivnice, Czech Republic and had a sales turnover of US $ 255 million in 2005.

However, this change in shareholding creates huge opportunity for Vectra Group to grow and build on its existing Joint venture with Tatra a.s., Tatra Vectra Motors Limited, and will bring in synergies with Tanax a.s., Slovakia, erstwhile Slovakian arm of Tatra a.s. where Vectra is the controlling shareholder. Tatra's other partner in India, Bharat Earth Movers Limited (BEML) is a significant supplier of a variety of models comprising of 4X4, 6X6, 8X8, 10x10 & 12x12 trucks to the Indian defence forces.

About Tatra a.s.

With a history of more than 150 years, Tatra a.s. located in Koprivnice, Czech Republic, is a manufacturer of heavy-duty all wheel-drive off-road trucks, chassis-cabs and special vehicles with exceptional mobility and robustness. Vehicles bearing the TATRA brand are characterized by their exceptional chassis design, high passing ability through the most difficult terrains, as well as high reliability, which makes them ideal for operation in the hardest terrain and climatic conditions. Besides the truck manufacturing, Tatra a.s. completely owned subsidiaries, Taforge (forgings), Tafonco (castings) and Tawesco (Press & Tooling shop) catering to its own needs as well as supplying to leading European automotive OEM's. Taforge and Tafonco are one of the largest automotive forging and casting companies in Central Europe.

About Vectra Group

Founded in the 1970s the Vectra Group today, has a multi-dimensional portfolio of companies that operate in various business domains across the world. The core businesses of the Group are Engineering, Automotive, Material Handling & Construction Equipment, Real Estate with recent additions into the Services & IT sectors. Operations of the Vectra Group are primarily in India and Eastern Europe spanning over 18 companies with 8 manufacturing facilities in 6 countries. Vectra Group's headquarters are in the United Kingdom.

Another Vectra Group company, Global Vectra Helicorp Ltd. is the largest dedicated offshore air-logistics support helicopter company has recently completed an IPO with stocks listed at the BSE & NSE.