Moser Baer acquires Philips subsidiary

NEW DELHI

FEBRUARY 8, 2007

Moser Baer and global giant Philips announced that they have entered into a
definitive agreement under which Moser Baer will acquire OM&T BV, a highly
specialized technology company for optical R&D, which currently is a 100
percent subsidiary of Philips.

"This acquisition is a major strategic milestone for Moser Baer as we
implement our strategy to be at the forefront of technology in both the optical
and solar photovoltaic (PV) segments," commented Ratul Puri, Executive
Director, Moser Baer India.

This acquisition will complement the existing cutting edge technology
research being done in Moser Baer's R&D center in India and help the
global number two players in the optical media market to further consolidate its
leadership position. According to the agreement, all IP created by OM&T will
be transferred to Moser Baer. The joint venture will also focus on development
of photovoltaic technologies to support Moser Baer's PV business.

According to Dr. Nic Kramer, Senior VP, Corporate Investments, Philips
International BV, "This is synergistic move, and I am sure that Moser Baer's
high technology manufacturing competencies along with OM&T's R&D
capabilities will ensure that we see innovative products in the immediate
future."

While OM&T has been instrumental for developing new optical media
solutions and technologies creating new markets via global standardization, its
pioneering work in Blu-ray and its status of being the only company outside
Japan which is shipping Blu-ray discs will jumpstart Moser Baer's objective of
being amongst the first few global manufacturers of the Blu-ray disc.

Moser Baer's proprietary patented L2H (low to high) technology, along with
OM&T competencies in the H2L (high to low) technology will ensure that Moser
Baer leads in Blu-ray disc technology and manufacture. Having already
established a first mover advantage in HD DVD-R format, the company will now
extend its technology leadership position in the Blu-ray media as well as other
new formats like Holographic Storage.

"OM&T brings to MBI not only its state-of-the-art Blu-ray disc
testing and manufacturing capabilities, world class mastering and stamper making
expertise, test and professional discs opportunities but also a pool of highly
qualified scientists and engineers. This talented pool will augment Moser Baer's
capabilities in the areas of optical media, PV and beyond," said Girish
Baluja, COO, Blank Optical Media, Moser Baer India.

"I am excited about the opportunity to join Moser Baer. I believe that
the combined R&D efforts will ensure that we can become a hub of global
optical media and photovoltaic research in the world," said Dr. Jan van den
Brink, GM OM&T.

OM&T will also help Moser Baer's entry in the Test Disc market, in
which OM&T is a leading player. Test Discs enable disk manufacturers to test
and calibrate their drives.

With the agreement, Moser Baer will also be able to leverage OM&T's
best in class mastering and stamper making capabilities. Moser Baer and OM&T
will complement each other well in terms of key R&D initiative and help
Moser Baer in further establish the company's leadership position OM&T
also possesses world-class capabilities in thin film, wet chemical processing,
optics and concentration and testing procedures which will enable Moser Baer to
take a significant leap forward in R&D efforts in multiple PV technology
forays.