JM Financial

Mumbai, August 9, 2006: JM Financial Group is launching a corporate private equity fund, JM Financial India Fund, with US-based Old Lane Partners, LP, being the lead investor/co-sponsor to the Fund. The initial corpus of the Fund will be USD 150-175 million and will be investing in Indian companies. Monies are being raised from domestic investors and overseas investors, subject to necessary approvals.

JM Financial India Fund has announced its First Close on July 31, 2006. The Fund has already received commitments of over Rs. 415 crore (approx USD 90 million) since its launch a few months ago.

Mr. Nimesh Kampani, Chairman JM Financial Group said, “We are pleased to announce the setting up of our corporate private equity fund. This is in line with the expansion plans for the group. This fund is JM Financial Group’s first private equity fund and we are pleased to have Old Lane as our lead investor. The Indian private equity market is at the threshold of its most exciting phase. The India growth story, strong emerging companies backed by new age entrepreneurs offers tremendous opportunity for the JM Financial Group to invest private equity capital in building businesses in such high growth companies.”

Mr. Vikram Pandit (Founder) of Old Lane said, “Given my long standing relationship with Nimesh and the credentials of the JM Financial Group, we are pleased to partner in this Indian corporate private equity fund with them. In the best traditions of global collaborations, the Fund will benefit from JM Financial’s unparalleled access and Old Lane’s wealth of international investment expertise and processes. ”

Mr. Vishal Kampani of JM Financial adds, “The launch of this Fund marks the beginning of JM Financial’s intended focus in the alternative investment space in India.”

Mr. Dilip Kothari, Founding MD, Private Equity Fund said, “The Fund intends to pursue high growth companies across sectors such as business process outsourcing, manufacturing, healthcare, media, hospitality, financial services and retail sectors.” Mr Kothari, former managing director of Olympus Capital Holdings Asia who brings with him 20 years of experience in the financial services globally adds, “The Fund shall identify opportunities within these sectors which have attractive risk/return profiles and substantial value creation potential for our investors. We plan to invest on a value added basis in companies that have a good brand name, critical mass, distribution network and high growth potential”.

About Old Lane

Old Lane Partners, LP is a private investment firm providing investment management and other financial services. Old Lane manages several billion dollars across multiple strategies and multiple asset classes globally. Old Lane was established by a group of senior executives, many of whom previously worked together at Morgan Stanley, including its former President, Mr. Vikram Pandit. Old Lane is headquartered in New York, and has a global presence with offices in three continents. Hari Aiyar is Chairman and CEO of Old Lane India which has offices in Mumbai and Chennai.

About JM Financial

The JM FINANCIAL Group is an integrated financial services group offering a broad range of financial products and services to its corporate and individual clients.