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Amara Raja to invest Rs. 650 Million to increase Industrial VRLA Battery Capacity

Chennai, August 14, 2007: - Industrial and Automotive Battery major Amara Raja Batteries Limited (BSE Code: 500008 & NSE Code: AMARAJABAT) has announced investment of Rs.650 million to enhance its Industrial VRLA Battery capacity. The proposal in this regard was approved by the Board of Directors at the Board Meeting held today.

The Company’s strategy to increase the liquidity of its stock through a stock split from Rs.10/- face value to Rs.2/- proposed at the last Board Meeting was also approved by the shareholders at the AGM held today

Media Contact
Vanitha Nav Jain
Ogilvy Public Relations Worldwide
Phone: +91 9940544411

About Amara Raja

Amara Raja Batteries Limited,an Amara Raja-Johnson Controls Company with 26% equity from Johnson Controls, is the technology leader in the Indian storage battery industry, manufacturing batteries for both Industrial and Automotive applications.

In India, Amara Raja is the preferred supplier to major telecom operators and equipment manufacturers, Indian Railways and a range of industry segments including Power, Oil & Gas and UPS applications. Amara Raja manufactures and sells automotive batteries under the brand name Amaron® which is distributed through a large pan-India sale-service retail network.

The company supplies automotive batteries under OE relationships to Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Mahindra & Mahindra, Maruti, Hyundai & Tata Motors. The company is an exclusive supplier to Daimler Chrysler, Ford and Swaraj Mazda. The Company’s Industrial and Automotive batteries are exported to APAC, Africa and the Middle East.

The company is listed on The Stock Exchange Mumbai and The National Stock Exchange.

ARBL’s firsts in the automotive battery industry

  • First to introduce a 36 month warranty
  • First to launch a 48 month warranty for automotive batteries
  • Battery with the highest CCA (Cold Cranking Amps)
  • Battery with the highest RC (Reserve Capacity)
  • First automotive battery company to have exclusive PitStop themed outlet

Johnson Controls is a global leader in interior experience, building efficiency and power solutions. The company provides innovative automotive interiors that help make driving more comfortable, safe and enjoyable. For buildings, it offers products and services that optimize energy use and improve comfort and security. Johnson Controls also provides batteries for automobiles and hybrid electric vehicles, along with systems engineering and service expertise. Johnson Controls (NYSE: JCI), founded in 1885, is headquartered in Milwaukee, Wisconsin. Its sales for 2006 totaled US$ 32.24 billion.

Safe Harbor
Some of the statements in this news release that are not historical facts are forward-looking statements. These forward-looking statements include our financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our products, the highly-competitive market for the types of products that we offer, market conditions that could cause our customers to reduce their spending for our products, our ability to create, acquire and build new businesses and to grow our existing businesses, our ability to attract and retain qualified personnel, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common to industry.