Baring Private Equity Partners Announces Exit in Indian Consumer Product Company.

Business Editors

LONDON--(BUSINESS WIRE)--Oct. 16, 2002

Baring Private Equity Partners, a leading international private equity asset manager, today announced that the Baring India Private Equity Fund (Baring India) has successfully sold its 10% stake in Jyothy Laboratories, a leading Indian consumer product company, to funds advised by CDC and Credit Lyonnais Securities.

Baring India initially invested $3.7 million in Jyothy Laboratories in March 2000. The investment financed the Company's transition from a Southern India regional player into a national player through the expansion of its distribution infrastructure. Since the Baring India investment, the Company's revenues have increased 47% per annum, compared to low single-digit compound growth for the sector. The Company was also able to enter new consumer product markets and is now positioned as the third largest insect repellent manufacturer in the country.

With this sale, Baring India has now realized an IRR of 39 percent in Rupee terms, or 33 percent IRR in U.S. Dollar terms, on its holding. The sale, which netted more than a doubling of invested capital in U.S. Dollar terms, was achieved in the same time frame that the Bombay Stock Exchange "Sensex" lost 53% of its value and the Indian Rupee depreciated 10% against the U.S. Dollar.

Commenting on the exit, Rahul Bhasin, Senior Partner, Baring India, said: "All private equity investors in highly illiquid capital markets begin exit planning at the time of investment, however, actual execution can be extremely difficult, particularly given current market conditions. As such, the only sound strategy is to continuously work with portfolio companies to build sustainable value over time. The valuations and exit opportunities invariably follow, as they did in this case."

Mr. Bhasin continued, "Despite continuing controversy surrounding changes in domestic tax regimes, Baring India was able to structure this exit in a tax efficient manner for our investors. We believe that in a slowing global economic environment, the Indian economy -- with 6% GDP growth last quarter -- still affords an exciting investment destination, especially for private equity investors."

Jyothy Laboratories manufactures and sells a variety of consumer products in India, including a leading post-wash fabric whitener (UJALA), which is ranked as one of the top 10 most advertised brands in the country. The Company has emerged as the fastest growing player in the Indian consumer products market over the last decade as a result of its widespread distribution network and aggressive sales force.

The Baring India Private Equity Fund focuses on companies in the information technology, business process outsourcing and life sciences sectors that capitalize on India's educated human resource strength and its low capital-intensive domestic businesses. The team has been working together advising on investments over the past four years and has an established network of contacts with local and foreign technology-focused companies. The network extends to local and foreign financial institutions, multinational strategic investors and local government officials. The team invests across the life cycle of investments from seed stage/start up to pre IPO or MBO deals.

Notes to Editors

Founded in 1984, Baring Private Equity Partners is a leading international private equity asset manager. The firm invests in every major market outside of the USA via six regional fund groups with dedicated local investment teams in Western and Central Europe, Asia, India, Latin America and Russia. With a balanced team of 65 investment professionals operating out of 21 offices in 17 different countries worldwide, Baring Private Equity Partners has one of the most extensive on-the-ground networks of any international private equity provider. Its superior global reach provides the resources and investment expertise to help entrepreneurs around the world build world-class businesses.

At 30 June 2002, Baring Private Equity Partners had in excess of $2 billion in funds under management.

Baring Private Equity Partners is a wholly owned subsidiary of ING Group, the 15th largest financial institution in the world, with total assets of $724 billion(a), assets under management of $478 billion(a) and a market capitalization of $52 billion(a).

(a) 30 June 2002