The purchase follows an agreement between Hutchison, Essar and Usha Martin Telematics Ltd., wherein Essar had the option to purchase 3.43% of Hutchison Essar at the original acquisition price for the Kolkata license plus a carry cost. Essar had an option to acquire this stake until June 30, 2005. Usha Martin Telematics is owned jointly by Kotak and Hutchison.

Commenting on the transaction, Mr. Vikash Saraf, CEO, Essar Teleholdings said, "This acquisition is part of our decision to enhance our stake in the consolidated entity and also reflects the strong relationship between Essar and Hutch".

About the Essar Group

Essar Teleholdings is part of the Essar Group. ETHL has recently acquired a 9.9% stake in BPL Mobile in their Mumbai circle. The Essar Group is one of India's largest corporate houses with interests spanning the manufacturing and service sectors like Steel, Shipping, Power, Oil & Gas, Telecom & BPO and Constructions. The Group has an asset base of over Rs.20,000 crores.