• Company’s robust top line & bottom line reinforces the commitment that Bosch has in the Indian market
• Overall growth story continues at Bosch

Mumbai, March 17, 2007: Spurred by India’s economic growth and a vibrant automotive and other industries, the Bosch Group today outlined four key areas that it will focus on: Introduction of new Technology & Products, continued Investments, increased Exports and
Business excellence, through its flagship Motor Industries Company Limited.

Announcing its financial results for 2006 (January-December) and overall growth across business segments at a press Conference in Mumbai, Dr. Albert Hieronimus, Managing Director, Motor Industries Company Limited said, “Bosch will continue to introduce newer
technologies & businesses and expand its product range in India. Our company will bring in the required investments in R&D & manufacturing while capitalizing on the local talent.”

Financials: bolstering growth
Motor Industries posted net sales of Rs 37,837 Million in 2006 registering a growth of 27% over the previous year. The Profit Before Tax (PBT) stood at Rs 7,983 Million which is 21% of net sales (as against 18% in 2005). The Profit After Tax (PAT) stood at Rs 5,480 Million, which is 14.5% of net sales (as against 11.5% of last year). This profit includes one time effect of sale of properties at Chennai and Bangalore for Rs 1,463 Million.

Sector wise Breakup: Expanding market share
Automotive Technology
The Automotive OE business recorded a healthy growth of 27% over the previous year driven by the buoyancy in the automotive industry. The Company’s Automotive Aftermarket Division also grew by nearly 10% in 2006. Recognizing the changing automotive technology and the consequent changes in the aftermarket requirements, Mico plans to invest in expanding its workshop network across the country. There are currently 750 Mico Workshops and 151 Bosch Car Service centers across the country.

Blaupunkt, a market leader in the in-car entertainment business from the house of Bosch garnered a growth of 11% and expanded its presence in the country through the launch of new brand shops and products such as the Mumbai MP26 car radio.

Consumer Goods & Building Technology
The Power Tools Division grew by 27 %, doubling its turnover within 3 years. Through an innovative alliance with six leading nationalized banks, the Company launched the ‘Bosch Vaahan’ - a unique campaign to not only generate greater awareness about its range of
products amongst artisans in rural India but also to make the tools more affordable for them.

The Security Technology business continues to be one of the largest suppliers of security, safety and communications solutions in the country and recorded a growth of 53% in 2006.

Industrial Technology
The Packaging Machinery business had a growth of nearly 70% in the food packaging industry and also ensured a steep rise in its sales with its entry into the confectionery segment. The Automation Technology business has been recognized as ‘Centre of Competence’ within the Bosch world to build and deliver machines to both internal and external customers.

Exports
“Besides the increase in domestic demand, our exports sales stood at Rs 6269.6 million registering a 16.57% on net sales and 48% growth over the previous year which demonstrates the confidence that our customers have in the quality of products being
manufactured in India,” held Dr. Albert Hieronimus.

Bosch Innovative technology for a dynamic market
Bosch sees India as a growth-oriented country and it will continue to play an increasing role in the Group’s global plans. Bosch has already announced an investment of Rs. 1800 crores in India between 2005 and 2008. A majority of these investments are through Mico with nearly Rs 550 crores being earmarked for the establishment and expansion of Common Rail facilities. In mid 2006, the first Common Rail Pump rolled out of the Bangalore facility while the Nashik facility started the manufacture of Common Rail Injector components in December 2005. Remaining investments are not only in the areas of diesel, gasoline, starter motors and generators in the automotive range but also in the power tools and packaging in the non-automotive range.

Road Ahead:
With the positive outlook in the Indian economy, Bosch will continue to invest in developing competencies in manufacturing and product development. Exports will be a focus area with the increasing role of the company in the international production network of Bosch. It also aims at achieving business excellence as per the European Foundation Quality Model (EFQM) model ensuring overall excellence in all business areas.

“Through all these initiatives, our focus will remain on bringing in products and technologies that contribute to a world which is clean, safe and economical,” added Dr. Hieronimus.“Bosch will also significantly contribute in realising the recently announced Government of India’s Automotive Mission Plan which is aimed at making India an automotive superpower.”

About the Bosch Group
The Bosch Group is a leading global manufacturer of automotive and industrial technology, consumer goods, and building technology. In fiscal 2006, some 260,000 associates generated sales of 43.7 billion euros. Set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as "Workshop for Precision Mechanics and Electrical Engineering," the Bosch Group today comprises a manufacturing, sales, and after-sales service network of some 300 subsidiaries and more than 13,000 Bosch service centers in over 140 countries.

The special ownership structure of the Bosch Group guarantees its financial independence and entrepreneurial freedom. It makes it possible for the company to undertake significant up-front investments in the safeguarding of its future, as well as to do justice to its social responsibility in a manner reflective of the spirit and will of its founder. A total of 92 % of the share capital of Robert Bosch GmbH is held by the charitable foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are carried out by Robert Bosch Industrietreuhand KG.

Additional information can be accessed at www.bosch.com

About Motor Industries Company Limited
Motor Industries Company Limited is the flagship of the Bosch Group in India. Founded in 1951, it has grown over the years to become India’s largest auto component manufacturer. It is also one of the largest Indo-German companies in India.

The Bosch Group holds 60.55% stake in Motor Industries Company Limited. Access to state-of-theart technologies from Bosch and a commitment to world-class quality have made it the country's largest manufacturer of Diesel Fuel Injection Equipment and one among the largest in the world. It is headquartered in Bangalore with facilities in Bangalore, Nashik, Naganathapura and Jaipur. All the 4 plants are TS 16949 and ISO 14001 certified. With strength of over 10,300 associates, the company manufactures and trades products as diverse as diesel and gasoline fuel injection equipment, industrial equipment, auto-electricals, hydraulics, electric power tools, packaging machines, security systems and Blaupunkt car audio systems.

It has a strong after sales network spanning across 1000 towns and cities in India with over 4,000 authorised representations which ensure widespread availability of both products and after-sales services. As Bosch is focusing on India to develop it as a technology hub, the company is gearing up to meet the challenges of the future.

Additional information can be accessed at www.boschindia.com