ICI India has reached an agreement today with Orica Investment Pty Limited of Australia ("Orica") for the sale of its 51% holding in Indian Explosives Limited (IEL) for a consideration of Rs 66.64 crores. The completion of the proposed sale of shares is conditional upon certain regulatory approvals to be obtained by Orica. After completion, both parties will take necessary steps for withdrawal of the suits pending before the Hon'ble Bombay High Court. Orica already has 49% shareholding in IEL.

Also, subject to necessary statutory approvals, IEL will be acquiring the 30% shareholding of Ensign Bickford in Initiating Explosives Systems India Limited (IESI). IEL already holds 70% in IESI.

The proposed sale is in line with the ICI India's strategic intent of maximizing shareholders' value while aggressively growing the core businesses.

The transaction is expected to be completed before end of this year.

Kolkata
30 July, 2003

For further information:

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