Current Happenings: Dishman Pharmaceuticals and Chemicals Limited.

	July, 2007 DISHMAN SIGNED MOU WITH SOLVAY Dishman Pharmaceuticals and Chemicals Ltd. (DPCL) announces that it has signed a Memorandum of Understanding (MoU) with Solvay Pharmaceuticals BV (Solvay), the Netherlands, to acquire the fine chemicals, vitamin D and vitamin D analogues business from Solvay for an undisclosed amount. As part of this deal all facilities, people and activities located at Solvay’s Veenendaal site in the Netherlands and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business will be transferred to Dishman after satisfactory completion of due diligence procedures, approval from the relevant authorities and appropriate employee information procedures. The transfer of ownership will be completed during 2007. The intended sale of Solvay’s site in Veenendaal is a result of Solvay Pharmaceuticals’ strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business. Dishman has a pre-existing long-term relationship with Solvay for contract manufacturing of a patented API and intermediates. Further, in 2001, Dishman and Solvay had entered into Toll Manufacturing Agreement to convert a raw material supplied by Solvay into an intermediate of vitamin D3. With the experience gained and technology available with Dishman, the acquired business will considerably add value to Dishman’s business. According to Mr. J.R. Vyas, Managing Director of Dishman Pharmaceuticals and Chemicals Ltd., acquisition of cholesterol, vitamin D and vitamin D analogues business is a step in the right direction. It will not only increase the basket of products of Dishman but also brings new customer relationships. The Veenendaal site of Solvay Pharmaceuticals houses the business group Vitamins & Chemicals. Main activities of this group are the production, marketing and sales of cholesterol and cholesterol related products. The manufacturing of vitamin D analogues takes place on Solvay’s site in Weesp. Cholesterol is used in pharmaceutical, cosmetic and crustacean feed applications. Vitamin D analogues are used for food and pharmaceutical applications, and fall in the category of high potency products. Dishman will retain production of cholesterol and vitamin D analogues at Veenendaal and transfer the vitamin D3 production to its Indian plants. Dishman Pharmaceuticals and Chemicals Ltd. (www.dishmangroup.com) is a global company, involved in the manufacture of pharmaceutical intermediates, specialty chemicals, Contract Research & Manufacturing Services, APIs (active pharmaceutical ingredients), API intermediates and quaternary compounds. Dishman commenced business in 1989 and it emerged as India’s leading contract research and manufacturing company. Dishman is among the few Indian companies to have a long term API and intermediate supply contract for a molecule currently under patent for a global pharmaceutical major. Dishman’s manufacturing plants and research facilities are spread across two locations in the state of Gujarat, India. Dishman has an approved USFDA facility and cGMP compliant manufacturing facilities, a dedicated R&D center equipped with competent technical team and laboratory equipment and a worldwide network in USA, UK, Europe, Middle East, Africa, Japan and China to secure and service customers globally. In 2006, Dishman acquired Carbogen Amcis, a Switzerland based contract research and manufacturing facility, which is fully integrated.

	September, 2006 Joint Venture in Saudi Arabia Dishman Group has entered into a Joint Venture (JV) Agreement with Arab Company for Drug Industries and Medical Appliances (ACDIMA) (www.acdima.com), Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) (www.spimaco.com.sa) and Takamul Holding Company for Investments (THC) (www.takamulinvest.com), daughter company of Capital Advisory Group (CAG) (www.cagksa.com). ACDIMA is promoted by 18 Arab Nations for economic development of these nations through setting up of projects in various fields, including manufacturing of raw materials for pharmaceutical industry. It has a paid up capital of Kuwaiti Dinar 49.44 million (equivalent of about U.S. Dollar 169 million) and a net worth of Kuwaiti Dinar 73.96 million (equivalent of about USD 253 million). SPIMACO is a Saudi Joint–Stock company with a fully paid-up capital of SR 600 million. It was established in 1986 with the main objective of setting up an advanced pharmaceutical industry in the Kingdom of Saudi Arabia , for the local production of medicines and medical appliances and to market these products inside the Kingdom and for Export. SPIMACO has developed a strong position in Saudi Arabia and is well positioned to sustain its growth and have a sound platform to serve export markets. SPIMACO serves successfully several markets locally and internationally and have built superior relations with regulatory bodies and the medical professions at large. The heavy investments in regulatory, marketing, sales and international alliances gave SPIMACO the market capabilities to prosper and overtake a lot of competitors. ACDIMA is also supported by Capital Advisory Group (CAG) established in the Kingdom of Saudi Arabia for project approval, arranging finances for joint venture projects to be executed by ACDIMA and selecting the local partner. CAG arranges interest free long-term loans to finance 50% of project cost for joint venture projects. 25% of the project cost will be financed by term loans by commercial banks in the Arab Nations. The balance 25% project cost will be financed through equity. The equity will be jointly held by ACDIMA, SPIMACO, THC and Dishman Group. The project will be seeking soft loans from local government bodies such as Saudi Industrial Development Fund (SIDF – www.sidf.gov.sa) and British Offset in the Kingdom (www.britishoffset.com) with further support to allocate subsidized land by Saudi Economic offset Program (EOP). The new JV Company is issued industrial licenses in the name of CAD Middle East Pharmaceutical Industries Ltd. (CAD). CAD will initially manufacture 20 API’s in a multi-purpose facility with room to expand product base. Dishman Group has been selected as a foreign joint venture partner for promoting an industry to manufacture various APIs based on the technology to be supplied by Dishman Group. The scope further includes engineering for the project, supply and installation of machinery, training of the personnel and marketing of the products, not only in Arab Nations, but exporting there from. As a single window concept adopted by ACDIMA, Dishman Group is to supply all the intermediates required for the manufacture of various APIs by the joint venture.

	August, 2006 Dishman acquired CARBOGEN AMCIS AG ( Dishman Pharmaceuticals and Chemicals Ltd. (“Dishman”) acquired CARBOGEN AMCIS AG (“CA”), a Swiss Research based company with the three production facilities in Switzerland for manufacture of high potent high value products from Solutia Europe SA/NV (“SESA”). Dishman paid to SESA over US$ 75 million (inclusive of around US $ 9 million for working capital) and took over the shares and assets of CARBOGIN AMCIS, through its wholly owned subsidiary namely Dishman Pharma Solutions AG (“DPS”) in Burssels on 22nd August, 2006. Though the transfer took place on 22nd August, 2006, it will be from retrospective effect i.e. 1st August, 2006. Dishman has taken over CARBOGEN AMCIS as a debt-free company. The entire transaction is financed through share capital contribution by Dishman of US$ 22.50 million in DPS and a syndicate loan of US$ 52.50 million to DPS by ICICI Bank and Rabo International through their Singapore Branch. CARBOGEN-AMCIS has world-class research and development facilities at three sites in Switzerland: Aarau, Bubendorf, and Neuland. CARBOGEN-AMCIS differentiates itself by the quality of its technical capabilities and its integrated platform, which provides seamless solutions to the world’s leading pharmaceutical and biotechnology companies. During the year 2005, the business had a turnover of CHF 81.8 million (audited) (equivalent of around Rs. 308 Crores). As a result CARBOGEN-AMCIS has developed a strong, loyal and satisfied customer base among medium-sized pharmaceutical and biopharmaceutical companies. CARBOGEN-AMCIS generated approximately 90% of revenue in 2005 from repeat customers. All intellectual property, patents and trademarks, customer contracts, as well as employees of the Pharmaceutical Services business have been included in the transaction. Dishman will enhance the business prospects of CA by driving synergies between the two companies. Expanding the product range and renewing the focus on key accounts will enhance the scale of operations. Jointly the Indian and Swiss businesses can serve the entire drug life cycle of 15-20 years. Dishman also hopes to leverage its competency in operational efficiency in India to improve margins in the Swiss operation. This acquisition will boost Dishman's contract manufacturing business from CARBOGEN customers and Dishman will now be the only Contract Manufacturing Organization in India with high potency manufacturing capability. www.carbogen-amcis.com www.amcis.ch www.carbogen.com

	May, 2006 USFDA Inspection Dishman has successfully went through USFDA audit and FDA auditor announced their recommendation for PI approval.

	February, 2006 Dishman Pharmaceuticals acquires IO3S, Switzerland Dishman Pharmaceuticals & Chemicals Ltd has acquired IO3S Ltd of Bern, Switzerland, through its 100% wholly owned Switzerland based subsidiary company M/s. Dishman Switzerland Ltd. The Assets base of IO3S (excluding the value of IP and without revaluation of assets) is currently around US $ 2 million and the Company has negotiated the cost of acquisition even below this price. Presently, the Company has taken over 51% of the shares with voting rights of IO3S from its present owner with a right to take over the balance 49% of the shares at the same negotiated price at the option of the Company, within the period of 12 to 18 months. The acquisition of IO3S in the hands of the Company will be as a Debt free Company. IO3S is the only Company in the world in the field of consultancy and research in Ozone Chemistry. It has a fully developed laboratory as well as a pilot plant for Ozone based reactions. IO3S has created a strong IP, having serviced major global pharma MNCs and specialty chemical Companies. At the time of acquisition it has a order book covering CR assignments of several Molecules for various MNCs. This will result in contract manufacturing projects, if the project is successful and commissioned. The IO3S acquisition is a major step for the Company in its CRO / CMO strategy. IO3S has an excellent track record of customer relationships with pharma and chemical multinationals through its strong market presence in Europe and USA. Since contract research is the best way forward for getting contract manufacturing business, IO3S's past, present and future CR assignments will provide excellent scale-up opportunities within the Company's manufacturing plants, which has recently invested into large scale Ozone Chemistry plant at Bavla. The Company will retain all key technical personnel of IO3S, including the promoter of IO3S. The move will strengthen the Company's activities in Contract Research and Manufacturing in the specialized field of Ozone Chemistry; as well as further improve the European and US interface with customers. http://www.io3s.com

	January, 2006 Dishman is putting up manufacturing facility at Shanghai, China. Dishman is putting up Medicine Intermediate and Quaternary alkylphosphonium salt manufacturing facility at Shanghai Chemical Industry Park, Shanghai, China. The total land acquired is around 40,000 Sq. Meter and Project Environment Impact Assessment and Feasibility Report has received approvals from the concerned government authorities. The construction will initiate from October and the plant is planned to be in operation by January 2008. The manufacturing site is designed to match International standards. The output of the plant will be around 3000 MT of Quaternary alkylphosphonium salts and around 500 MT of Medicine Intermediate.