We, on behalf of Tata Tea Limited, would like to brief you on recent developments at our South India estates, where, in continuity of our intent to elegantly exit from our Munnar based Plantations, Periakanal and Pullivasal estates remain as Tata Tea properties.  While both properties have improved their performance in recent times, with sincere and dedicated efforts of all Tateans in them, we need to address the long term strategic agenda of Tata Tea to focus on becoming the foremost tea based beverage company, even as we develop sustainable business options for plantations which require a totally different set of corporate capabilities to realise their potential.

At the time of KDHP formation, both Pullivasal and Periakanal estates (which were outside the Concession area) were not included as the valuation and terms of the Concession area based transaction would be different at these estates. During the interim period since KDHP formation and now, we have observed a steady improvement in KDHP profitability and operations and believe that there will be mutual benefit in utilizing their services to manage the estate operations at Periakanal and Pullivasal, driving further improvement from our current performance. It has now been decided, based on Tata Tea management recommendation, first by the Committee of the Board and thereafter by the Board of Tata Tea, that we should execute a Management Contract with KDHP for both Pullivasal and Periakanal estates, effective from 1st August 2007. By this Agreement, the two estates would be under a supervisory arrangement, with KDHPL managing the estates on behalf of Tata Tea.  However, the n umber of employees in both the estates put together around 1208 would continue to be on the rolls of Tata Tea. This transitory Agreement will pave the way for subsequent lease and consideration of Tata Tea's exit from tea estate operations in future.

Tata Tea will continue to own and manage the Instant Tea Division, the Pullivasal Packeting Centre in South India, the Munnar General Hospital, High Range School in Munnar and the far reaching activities of the Shristi Welfare Centre, wherein the differently abled community members from Munnar and the KDHP Plantations are fostered, trained and provided with opportunity to grow their potential. Tata Tea will continue carrying out the developmental welfare activities with commitment irrespective of the current transition agenda.

Kolkata / Anji County (China), May 8, 2007: Tata Tea today signed a Joint Venture Agreement with Zhejiang Tea Import & Export (ZTIE) Company of People's Republic of China at a ceremonial function held at the Government House, Anji County.

The agreement involves setting up a joint venture Company at Economic Development Zone of Anji County, Zhejiang, PRC for manufacture and marketing of Green Tea Polyphenols, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value added tea beverage products. The Company will own 70 percent of the registered capital of the joint venture Company. The project will come up at an initial investment of USD 16 million (INR 70 crores) to be funded by a mix of equity capital and borrowings.

The signing ceremony was graced by senior State officials, Mr. Percy T. Siganporia, Managing Director, Tata Tea Limited, senior officials from Tata Tea, Chief Director of Xinghe Group, Mr. Shi Jian Qiang, Chairman, ZTIE and other senior officials from ZTIE.

Addressing the gathering after signing the historic agreement, Mr. Percy T. Siganporia said, “This project is of great strategic importance for the Tata group in reaching out to the Chinese and Far East markets. I wish to take this opportunity to thank the senior government officials and the management of Zhejiang Tea Import & Export Company for their cooperation.”

Anji County, known as the City of Angel, is also called the ‘China town of Bamboo’ and ‘China town of White Tea’. Thus the new factory will be amidst most beautiful surroundings and in the heart of green tea areas.

About Tata Tea

Tata Tea Limited is a group Company of TATA Group, one of the largest and most respected business houses of India. Tata Tea was formed in 1983 from the erstwhile Tata Finlay Company, a joint venture company formed in 1964. The Company has five major tea brands and holds the second position in market and value share in domestic branded tea business. With the acquisition of Tetley Group in the year 2000, the combined entity now represents the second largest global branded tea operation with product presence in more than 40 countries. The current business interests include branded tea and tea extract business. Tata Tea has registered a turnover of USD 713m in 2005-2006. Tata Tea Inc., a subsidiary company in US is involved in the marketing and value addition of tea extracts.

The thrust on globalisation agenda of Tata Tea had earlier resulted in acquisitions of Good Earth in US, Jemca in Czech, Eight O’ Clock Coffee in US and recently, of trademarks Vitax and Flosana in Poland. Acquisition of 30 percent stake in Energy Brands Inc. (Glaceau brand) with an investment of USD 677m fits well with the Tata Tea Group’s strategic plan to become the No. 1 Beverage Company in the world.

Tata Tea has been involved in the tea extract business for last 40 odd years. The company has been manufacturing Black Tea extract in their factory situated in South India, exclusively for the export markets. A unique manufacturing process using fresh green tea leaves has given an exotic taste to their tea extract products and has found wide acceptability in western markets. Tata Tea black tea extracts has got significant market presence in the West, which find end use in many beverage brands. As it is strategically important for Tata Tea to expand the tea extract business and to have presence in world tea extract market, the group has focused their attention on green tea extracts, which is gaining popularity for application in food, beverages, personal care products and food supplements.

About ZTIE

Zhejiang Tea Import & Export Company Limited, based at Hangzhou in Zhejiang province, which is one of the largest tea growing areas in China. ZTIE is the largest green tea exporter of China and has established wide marketing network in China, Japan, Pakistan, Morocco and other parts of Africa. The Company’s main shareholder is state owned Xinghe group (54 percent), and the balance owned by the employees / managers. ZTIE has the much needed experience in running Joint venture companies and have been exporting value added branded green teas and tea machinery. The turnover of this company was $450m last year.

ZTIE is amongst the first ISO 9002 certified International Trading Company in China. The Company’s products have been awarded the prestigious Medal of Honour at the Monde Selection. With a dedicated and state of the art R&D facilities, the products meet all the internationally laid down quality parameters for tea.

For further information contact:
Rashmi Mehta
e-mail : rashmi.mehta@tatatea.co.in

Tata Tea Ltd.’s subsidiary, Tata Tea (GB) Ltd., U.K.. has signed a definitive agreement to acquire the assets of market leading tea company in the Czech Republic, JEMCA, from food processing company, Alima Znacková Potravina, a.s. The acquisition has been funded by The Tetley Group.

JEMCA has 26.6% volume share of the tea market in the Czech Republic* and turnover of 300 million Czech Koruna (around US$ 12.5 million).

JEMCA will continue to pack teas at its production facility in Jemnice, Czech Republic and continue to trade under the JEMCA brand name.

In a statement, Mr. Ken Pringle, Executive Vice Chairman and Chief Executive Officer of The Tetley Group, and Director of Tata Tea said :-

“This acquisition is a further development of our plans to grow the Tata Group’s tea business around the world. It gives us a market leading position in an area where tea consumption is high and where we have been previously unrepresented. The experience and skills of JEMCA and Tetley complement each other well and will combine to create a significant presence in Eastern Europe.”

* Source AC Nielsen November 2005