PRESS RELEASE

Nicholas Piramal signs two Platform Technology agreements with Morvus Technology Limited, UK, for R&D programs in Diabetes, Rheumatoid Arthritis and Oncology.

Mumbai, 27 October 2006: Morvus Technology Ltd, the Wiltshire, UK-based drug Discovery Company, and Nicholas Piramal India Limited (NPIL) are pleased to announce today the signing of two license agreements. Under these agreements, NPIL gets the rights to develop and commercialise two of Morvus’ technologies.

The first agreement relates to Morvus’ platform technology that allows the identification of novel genes and proteins associated with programmed cell death, thus opening the way for therapeutic programmes to attenuate their effects. NPIL will be responsible for developing the technology to generate new drugs in the areas of Diabetes and Rheumatoid arthritis.

The second agreement encompasses a combination therapy for cancer, which utilises a specific Cyclin Dependent Kinase inhibitor to enhance the effectiveness of known anti-cancer drugs.

Morvus will be entitled to initial fee payments for both contracts and will also be entitled to milestone and 2% royalty payments, as potential products progress to the market.

Mr. Ajay Piramal, Chairman, Nicholas Piramal India Limited said, “We are pleased to partner Morvus Technology in drug discovery platforms, which reinforce our discovery research efforts. Morvus is doing excellent work from its laboratories in the UK, a region where we continue to find excellent opportunities for partnering in high-end work”.

Dr Philip Burke, Chief Executive of Morvus, said: “I am very pleased that we have signed these agreements with NPIL as they have a proven capability to develop drugs in these disease areas thus providing an excellent opportunity for our early-stage technologies to progress towards the market. NPIL are currently reviewing other aspects of our portfolio and we look forward to further interactions in the near future.”

Since early 2005, Nicholas Piramal has made significant investments in the UK across its businesses. The Company acquired the Inhalation Anaesthetics business of Rhodia Organique Fine Limited, UK, in January 2005 followed by acquisition of the Custom Manufacturing business of Avecia Group, UK in December 2005 and acquisition of the Morpeth-based Pharmaceutical manufacturing Unit of Pfizer, UK in June, 2006. With these investments, NPIL now has four manufacturing facilities in the UK, which employ nearly 650 people. The Company has recently been short-listed for the “UK Trade and Investment India Business Awards 2006”.

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Notes to editors: 

About Morvus: Morvus Technology Ltd is a drug-discovery company operating in the pharmaceutical/biotech sector. It is based on the Porton Down Science Park, near Salisbury and is focused on developing commercially attractive therapies for cancer and neurological
disorders where there is a clear, unmet, medical need. Its business model is to license its programmes at a pre-clinical stage in return for milestone and royalty payments.

About Nicholas Piramal India Limited: Nicholas Piramal India Limited ("NPIL") is one of India's largest pharmaceutical companies with a growth track record of above 29% CAGR since 1988. The Company is currently ranked 4th in the Indian market with a diverse product
portfolio spanning nine therapeutic areas. NPIL had consolidated Revenues of Rs. 15.8 billion in 2005-06. The Company has R&D capabilities in Custom Chemical Synthesis, Process Innovation, NDDS and Basic Research. It has world-class formulations facilities and
USFDA-approved API facilities without any 483s.

NPIL has a long track record of successful collaboration with innovator companies. Since 2003, the Company has made significant investments to become a global custom manufacturing organisation (“CMO") for large and medium-sized innovator companies. Nicholas Piramal has a global CMO footprint across North America, Europe & Asia, and is committed to respecting Intellectual Property. 

NPIL is listed in India on the Bombay Stock Exchange, National Stock Exchange and Ahmedabad Stock Exchange. For further information, please mail investorrelations@nicholaspiramal.co.in  or visit www.nicholaspiramal.com.