• Essar to invest in Warid Telecom Uganda & Warid Telecom Congo

• Enterprise valuation of Uganda and Congo operations at USD 318 million

• Deal reflects Dhabi Group's vision to partner with other leaders in growing and adding value to their telecom investments

• Deal reflects Essar's plans to increase its presence in the Middle East and Africa region by forging partnerships with prominent business groups

• Essar's investment in Warid telecom in Africa is a part of its strategic plans to grow its businesses in Africa

Abu Dhabi/Mumbai, India, November 15, 2009: The Dhabi Group and the Essar Group today announced the signing of definitive agreements for an investment by Essar Group into the telecom assets of the Dhabi Group in Uganda and Republic of Congo. The agreements were signed by His Highness Sheikh Nahyan Mabarak Al Nahyan on behalf of the Dhabi Group and Mr Prashant Ruia, Group Chief Executive Essar Group in Abu Dhabi today. The enterprise valuation of the Uganda and Congo operations is collectively valued at USD 318 million.

The Essar Group has committed growth capital to both telecom operations to facilitate network expansion and marketing. Upon completion, the Essar Group will acquire a majority stake in both the assets. The partnership is also expected to bring operational efficiencies to the African operations.

HH Sheikh Nahayan Mabarak Al Nahayan, Chairman of Dhabi Group, said that: "We are pleased to join hands with a Group that both complements and extends our synergies to expand further into Africa. Warid has expanded its greenfield operations to become credible competitors and challengers in the market where it operates; the time is now right for the next stage of its growth and evolution."

Commenting on the occasion Mr Prashant Ruia, Group Chief Executive, Essar Group said, "Essar is delighted to partner with the Dhabi Group to expand Essar's telecom operations in Uganda and Congo. This is in line with Essar's plan to be a part of the growing telecom market in Africa. This transaction with the Dhabi Group augments our successful launch of telecom services in Kenya under the brand 'yu' which was a stepping stone for Essar to expand its telecom footprint to the African continent."

Essar's investment in Warid Telecom in Africa is a part of its strategic plans to grow its business in Africa. This deal is a reflection of Essar's plans to increase its presence in the Middle East and Africa regions as it explores business opportunities by forging partnerships with prominent business groups.

After the successful launch of mobile services in Kenya under the brand 'yu', Essar Telecom is now expanding its footprint in East Africa with Uganda and Republic of Congo operations.

Regarded as one of the fastest growing telecom operators in Kenya, Essar Telecom Kenya has over 600,000 subscribers and expects this number to grow significantly as it completes its rollout across Kenya.

Essar Energy had recently announced the completion of the acquisition of a 50% stake in Kenya Petroleum Refineries Ltd (KPRL), with the Government of Kenya holding the remaining stake.

KPRL is a 4 million metric tonne (MMTPA) per annum refinery in Kenya.

The Dhabi Group transaction is subject to regulatory approvals in Uganda and Republic of Congo.

Standard Chartered Bank acted as exclusive financial advisor to the Dhabi Group.

-Ends-

About Dhabi Group
Dhabi Group and its Chairman, HH Sheikh Nahayan Mabarak Al Nahayan, lead a consortium of investors composed of private equity and family offices in the region. The Group has diversified business interests with a focus on emerging market opportunities in financial services, telecommunications and real estate.

Dhabi Group and its consortia have banking interests in Asia; its portfolio was expanded in 2005 to include telecommunications services in Asia and Africa. Other business interests include real estate development, hotels, and manufacturing/diversified industrials.

The Group aims to strengthen its reach and diversify its portfolio through a series of strategic partnerships that will help optimize its potential in the emerging markets.

http://www.dhabigroup.com

About Essar Group
The Essar Group is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, Projects, Construction, and Mining & Minerals. With operations in more than 20 countries across five continents, the Group employs 60,000 people, with revenues of over USD 15 billion in FY08-09. Visit website www.essar.com

About Essar Telecom Business Group
Essar has significant interests in telecommunications services, spanning mobile telephony, telecom tower infrastructure, telecom retail and IT/telecom enabled services.

Essar holds a 33% interest in Vodafone Essar, which is a joint venture with the Vodafone Group, and is one of India's largest cellular service providers, with over 85 million subscribers.

Essar Telecom Kenya launched Kenya's fourth mobile cellular network under brand "yu"

'The MobileStore', a pioneering telecom retail initiative from the Group, is India's largest national retail chain of mobile phone stores with over 1300 stores spread across 200 cities in the country

The Group owns Essar Telecom Infrastructure Ltd., one of the largest independent telecom tower infrastructure providers in India

Essar operates an outsourcing services business under the Aegis brand, with over 39,000 employees globally across 38 delivery centres in India, Philippines, Costa Rica, USA, Kenya, South Africa, Australia and Sri Lanka.

Essar media contacts
Manish Kedia Sr Vice President,
Essar, India
Mobile:+91 98197 30092
email :manish.kedia@essar.com

Manisha Awasthi Telecom Group,
Essar,
India
Mobile :+91 98339 45761
email:manisha.awasthi@essar.com

Kenya
Kunal Ramteke,
Essar Telecom Kenya
Email: kramteke@yu.co.ke

© Press Release 2009