Hutchison Increases Indian Investment

Hutchison Telecom has announced that is buying a further 5.11% stake in India's Hutchison Essar from affiliates of the Hinduja Group for US$450 million. Under these agreements, Hutchison Telecom Group will acquire the entire issued capital of IndusInd Telecom Network ("ITNL"), a holding company for a 5.11% stake in Hutchison Essar Limited.

Upon completion of the acquisitions, Hutchison Telecom will have interests in companies that control approximately 67% of Hutchison Essar, and a direct control of approximately 48%.

Mr Dennis Lui, Chief Executive Officer of Hutchison Telecom said, "This transaction reaffirms our commitment and interest in Hutchison Essar and better positions us for further development."

The valuation of Hutchison Essar was under taken by IndusInd investment banking, which is also the advisor for the Hinduja Group."

Posted to the site on 3rd July 2006