Mumbai, 25 January 2002

At its meeting held in Mumbai on 25 January 2002, the Board of Directors of ICI India have recommended the sale of the Company's Pharmaceutical Business, subject to the approval by the shareholders through Postal Ballot, to Nicholas Piramal India Limited for a consideration of Rs 70 crores including working capital. The Pharmaceutical Business of ICI India has a leading domestic market position in the cardiovascular and anaesthesia segments in addition to a good export portfolio. The sales revenue from the business in the financial year ended March 2001 was Rs 69 crores. The proposed divestment includes the manufacturing facility at Ennore, near Chennai. All the 360 employees in the Pharmaceutical business will transfer to the Buyer upon completion.

This divestment is entirely consistent with ICI India's restructuring strategy and is in the best interests of all its shareholders and all the employees and customers of the business.

For further information:

R Guha
Tel: +91 124 2540810
Fax: +91 124 2540839
E mail: r_guha@ici.com