Rabobank sole advisors to Tata Group in stake acquisition

Mumbai, Maharashtra, India, Thursday, August 24, 2006 -- (Business Wire India) Rabobank International announced today of successfully closing the acquisition of a 30% stake in the Energy Brands Inc (EBI), USA for the Tata Group as its Sole Strategic and Financial Advisor for a value of USD 677 million. The acquisition represents the largest ever made by an Indian corporate so far. This is the second acquisition by the Tata Group within the last six months substantiating the global beverages strategy of the Tata Group.

Mr. Sanjiv Bhasin (Managing Director and Chief Executive Officer, RIF) said, "Rabobank is once again proud to be associated with the Tata Group in such an important deal. It is transactions such as these that pave way for a dynamic and evolving market. Our global expertise in the food and agribusiness space has enabled a close proximity with the Tata Group's strategic vision".

Mr. Rajesh Srivastava (Managing Director and Head Corporate and Commercial Banking, RIF) added, "We hope to do many more such deals that reiterate our area of core competency and reinforce Rabo's capacity to add value to strategic business growth plans of food and agri players in India, including global forays. The Tata Group sets a strong example to corporates in India by successfully closing a landmark cross-border deal in the US market."

This latest acquisition provides Tata Tea an ideal entry vehicle into the fast emerging world of functional beverages. The acquisition of the Glacéau® product line will help Tata Tea to establish its presence in the strongly growing functional beverage market in North America. EBI is a market leader in the American enhanced water market with their mother brand - Glacéau®. EBI straddles various segments of the enhanced water space with sub-brands such as vitaminwater®, fruitwater® and smartwater®. With its health-based positioning, EBI has grown exponentially at over 200% per annum in the last 3 years.

With a strong presence in the domestic tea and coffee markets, the Tata Group has determined a strategic objective of expanding its footprint globally across a category of beverages thus better managing the retail shelf space as well. In line with this objective, the group has made a series of acquisitions beginning with the Tetley Group, Good Earth Teas, Jemca, Eight O'Clock Coffee and now EBI. They have identified ready to drink (RTD) and health / fortified drinks as key growth areas. Both Good Earth Teas and EBI fit in with this stated objective. As its presence in beverages increases, the group will seek to exploit synergies in distribution and marketing across beverage categories in various markets. The group seeks to double its revenues from beverages, of USD 1.8 billion in 2004-05, in the next 5 years.

About Rabo India Finance Private Limited

Rabo India Finance Pvt Ltd provides innovative sector specific knowledge-based customised solutions in the following core competencies: Food & Agribusiness, Telecom, Media and Information Technology, Life Sciences, Corporate Finance, Renewable Energy & Carbon Credits. Rabo India Finance provides the entire spectrum of fund and fee based products and services in India drawing on its local resources as well as Rabobank's global network. With a Category 1 Merchant Banking license RIF is able to offer investment banking products that include advising demanding corporates on transactions ranging from capital structure to maximisation of client shareholder value and defense against takeovers.