Dr. Reddy's Announces Pricing of American Depositary Shares.

NEW YORK -- Dr. Reddy's Laboratories Limited (NYSE:RDY) today announced the pricing of the public offering of 12.5 million (excluding the underwriter's over-allotment option) American Depositary Shares ("ADS") at U.S. $16.00 per ADS. The offering is expected to close on November 22, 2006.

On November 13, 2006, the Company filed a shelf registration statement on Form F-3 and preliminary supplement prospectus with the U.S. Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs, of up to 13.5 million shares, excluding the underwriter's over-allotment option.

About Dr. Reddy's

Established in 1984, Dr. Reddy's Laboratories (NYSE:RDY) is an emerging global pharmaceutical company with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of diabetes, cardiovascular, anti-infectives, inflammation and cancer.

Disclaimer

This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

A registration statement and preliminary prospectus supplement to prospectus dated November 13, 2006, relating to these securities has been filed with the United States Securities and Exchange Commission. This press release shall not constitute an offer to sell or an offer to buy nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

A copy of the registration statement and preliminary prospectus supplement to prospectus dated November 13, 2006, is available on the U.S. Securities and Exchange Commission website at www.sec.gov under Filings and Forms (EDGAR).