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CHOLAMANDALAM DBS CELEBRATES START OF
RETAIL FINANCE PARTNERSHIP

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Launches Personal Loans

CHENNAI & SINGAPORE, JANUARY 27 2006 - The Murugappa Group and Singapore’s DBS Bank announced today the closure of the transaction leading to both becoming equal partners in the joint venture Cholamandalam Investment & Finance Company Limited (CIFCL).

CIFCL will be renamed “Cholamandalam DBS Finance Limited” following the receipt of regulatory and shareholder approvals. The Murugappa Group and DBS Bank each holds 37.48% of the equity in the joint venture company; the remaining 25.04% is with the public. DBS acquired 20% of its stake from the public through an open offer and the remaining 17.48% from Tube Investments of India Ltd (TI) through a share purchase agreement after obtaining the regulatory approvals.

The Board of Directors of the company now comprises 9 members. Mr M A Alagappan continues as chairman. Mr Rajan Raju, Ms Susan Ho and Mr Pranam Wahi are the new board members representing DBS Bank. Mr M Anandan and Mr Partho S Datta continue on the Board as representatives of the Murugappa Group. In addition, Mr R V Kanoria, Mr V P Mahendra and Mr Ravi Ramu continue as independent Directors.

The company announced that it has launched a new Personal Loan product. The new product will initially be available to customers in Chennai, Bangalore and Coimbatore, followed by a nationwide rollout in the coming months.

Mr M A Alagappan, Chairman, said: “For twenty eight years now, Cholamandalam has continually reinvented itself and has grown into a national player with a robust presence in a range of financial services. This joint venture with DBS Bank marks the beginning of a new and exciting phase of growth for the company. I am confident that the company will leverage its strong local distribution and DBS Bank’s expertise in consumer finance and generate substantial value for customers and shareholders in the years to come.”

Rajan Raju, Managing Director – South and South East Asia, DBS Bank, said: “We look forward to working with the well-respected and well-established Murugappa Group to develop Cholamandalam DBS Finance into a leader in consumer finance in India. We will also capture the growing wealth management business opportunities through DBS Cholamandalam Asset Management, DBS Cholamandalam Securities and DBS Cholamandalam Distribution Services. This partnership underscores DBS’ continued commitment to India and positions us well to service India’s growing connectivity to Asia.”

M Anandan, Managing Director, Cholamandalam, said: “I am delighted that the joint venture is now fully operational. We are committed to making available competitive consumer finance products to service the needs of our customers. Following the launch of our Personal Loan product, we are looking to introduce Home Equity loans in the next few months.”

The company announced financial results for the quarter ended December 31, 2005. Total disbursements for the first nine months of the year increased 17% to Rs. 930 crore. The company’s gross managed assets rose 19% to Rs.2210 crore. Profit Before Tax was Rs. 39.7 crore.

Mr Anandan said, “Our automobile finance business has continued to show good growth due to our increased focus on the used-vehicles segment, a deliberate move to offset the slow down in sales and sustained pricing pressure in the new commercial vehicles segment.”

About DBS
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS has leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin, Dongguan and Hangzhou. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore. More information about DBS Group Holdings and DBS Bank can be obtained from our website (www.dbs.com).

About Cholamandalam Investment and Finance Co. Ltd
Cholamandalam Investment and Finance Company Limited (Cholamandalam) along with its subsidiaries and affiliates offers individual and institutional customers a range of financial services – automobile finance, capital market finance, general insurance, mutual funds, securities broking, distribution of investment and insurance products and risk management. Cholamandalam shares are listed on Bombay (BSE) and National (NSE) stock exchanges. (www.cholamandalam.com)

Cholamandalam is part of the US $1.6 billion Murugappa Group, a pioneer and market leader in several fields with manufacturing facilities across 12 states. The Murugappa group has a strong presence in abrasives, engineering, bio-products, sanitary ware, sugar, farm inputs, plantations and nutraceuticals. Companies in the group include Carborundum Universal, Coromandel Fertilisers, EID Parry and TI of India. (www.murugappa.com)