Jaipur, March 17, 2005: Announcing yet another successful year in India with growth in sales across all its business segments, Mico (a flagship company of the EURO 40 billion Bosch Group, manufacturer of Automotive and Industrial Technology, Consumer Goods and
Building Technology) today outlined its plans for continued growth in the year ahead. The company will leverage the emerging opportunities in the Indian automobile market, especially as the Bharat Stage II and Bharat Stage III emission norms roll out across the
country, with products and technologies that make mobility cleaner, safer and more economical.

Following the 2004 announcement from Bosch of an investment of Rs 10 Billion in the coming years for India of which Rs. 5.5 Billion is for manufacturing Common Rail System (CRS) in India, Mico confirmed that it will start the production of various components for
CRS in 2005. The high pressure pumps for the system will be produced in Bangalore, supported by the production of injectors at Nashik.

“Pioneered by Bosch, the Common Rail System is a global success story for Bosch. Now with the implementation of Bharat Stage III emission norms in India, we are well poised to lead the technology change in the Indian auto industry leveraging the technological
experience and expertise of Bosch,” said Dr. Albert Hieronimus, Managing Director, Motor Industries Company Limited in a press conference today.

“The Indian industry is already beginning to respond to the compliance requirements of the new emission norms and we are very optimistic about this line of our business in the country,” Dr Hieronimus added. Bosch has sold more than 20 million CRS the world over.
The first locally applicated CRS for Mahindra Scorpio 2.6 Turbo has been fitted with CRS manufactured by Bosch, and local application from Mico. The engineers at Mahindra along with Mico and Bosch applicated this technology in a record time of one year with a series of rigorous tests conducted under all possible conditions in India and Germany, Spain, Switzerland.

Also recognizing the servicing requirements of diesel systems, Mico plans to invest in expanding its Mico Workshop network across the country. The existing Mico Diesel Service Workshops, which are over 680 in numbers, are being ramped up in line with Bosch guidelines. They will be in a position to service Electronic Diesel Control Pump and Common Rail System.

Mico currently runs around 50 Bosch Car Service centers across the country (facilitating training and consulting for managing automotive parts) focusing on the car segment and aims at reaching 100 centers by this year end. The company believes that as the market for diesel expands, 60% of the diesel applications will be Common Rail systems over the next 8-10 years. The workshop network, with state-of-the-art engine diagnostics from Bosch, will provide the required high-end car care service.

As Mico chalks out plans for further growth, Bosch will play an increasing role to support the company through innovation, investment and expertise to fuel this growth as well as to transform the company into a Global Competence Centre and a Global Production Centre
for the Bosch Group. A validation of this exercise is the readiness of the Jaipur plant to supply pumps that will help the implementation of Bharat Stage II emission norms countrywide from April 2005, with know-how and technology transfer from Bosch.

Mico recorded an impressive growth in its exports for another consecutive year. Currently exports constitute 17% of Mico’s turnover. With CRS manufacture in India, new export markets are expected to further accelerate this growth.

For the financial year ending December 2004, Mico registered yet another year of success with sales of Rs. 23279 million, a CAGR OF 17% over the last 4 years. Most of this was driven by the unabated growth in the automobile segment, which closed its year end sales
at Rs. 21506 million, resulting in 18% increase in turnover for the automotive business alone. The year end profit registered a growth of nearly 60% closing at Rs. 3747 million. Worldwide, Bosch registered a 10% growth in sales turnover with sales of EURO 40 billion. A significant achievement of Bosch results for 2004 was its emergence as the world leader in auto technology.

“What was significant about our growth in 2004 was the success we achieved across all our business segments,” said Mr V. K. Viswanathan, Joint Managing Director, Mico. “Due to the robust growth of the Indian automobile market, we recorded an impressive growth in the OE sales. However, this growth was complemented by growth in our other businesses as well, including power tools, car multimedia, security technology, packaging machines and special purpose machines. In the automotive aftermarket, we continued to retain our leading position,” he added.

As the company continues to stretch beyond the automotive segment, some of its noteworthy achievements in its consumer goods and building technology divisions during 2004 include the new marketing achievements of the Power Tools division with the development of an Accident Relief Kit for the railways; the new seal packaging machinery and high speed candy wrapping machinery developed by the Packaging Machinery Division and the Plena Voice Alarm System launched by the Security Technology Division.

In addition to its magnificent financial results of the year 2004, Mico and its employees made a cash contribution of Rs. 10 million to Tsunami victims and also helped them with medicines, water and clothes. This is in line with the Bosch philosophy of being a socially
responsible corporate citizen.

About BOSCH:
The Bosch Group is a globally active and leading manufacturer and innovators of Automotive and Industrial Technology, Consumer Goods and Building Technology. In fiscal 2003, some 230,000 associates generated sales of 36.4 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 of Manufacturing, Sales and After Sales Service networks of some 260 subsidiaries and more than 10,000 service centers in over 130 countries.

Sales of the Bosch Group in 2004 from the Automotive Technology division were Euro 25.3 billion.

Preliminary figures for 2004(as of January 2005):

*Sales of 40 Billion euros, total workforce of some 242,000, more than half of them outsideGermany

About MICO:
Motor Industries Company Limited (MICO) is a Bosch Group company present in India for the last 54 years and has catered to the Indian auto market with technology support from Bosch. It is the largest Indo-German company and a household name in the country today.

Mico has developed excellent R&D and manufacturing capabilities. Its strong customer base and the market leadership are a testimony to its technology and quality of products. Mico currently has 4 plants in India including 2 in Bangalore and 1 each in Jaipur and Nashik. All the 4 plants are TS 16949 and ISO 14001 certified. The service network of Mico spans 1,000 towns and cities across India. Over 10,000 people are currently employed with Mico across its R&D, manufacturing and sales and service network.