JM Financial India Fund to Invest Rs. 40 Cr (approx. US$10 mm) in Spandana

Mumbai, July 09, 2007: JM Financial India Fund, a US$ 225 million corporate private equity fund, sponsored by JM Financial Limited and Old Lane Partners LP, will invest Rs. 40 crore (approx. US$10 million) in Spandana, a leading microfinance organisation (MFI) in India.

Spandana caters primarily to the lower income borrowers located in rural and urban areas. The Company operates in India through its 300 plus branch network in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu, with a client base in excess of 1 million.

The investment by JM Financial India Fund will be used to expand Spandana’s branch network and pursue growth opportunities both organically and through acquisitions.

Dilip Kothari, the founding Managing Director of JM Financial India Fund, said, “We look forward to working together with Spandana to create the premier microfinance organisation in the country. We believe that the company is well placed to benefit from its unique positioning in the niche microfinance sector and the multitude of untapped opportunities that can be customised to meet the needs of the semi-urban and rural masses.”

While announcing the investment, Mrs. Padmaja Reddy, Managing Director of Spandana said, “We are extremely pleased to partner with the JM Financial India fund, given its domain expertise in the Financial Services sector. We look forward to working with JM Financial’s team and leveraging their expertise to expand our customer base, grow our distribution network, and enhance our service offerings.”

Since its inception in 1998, Spandana has set industry benchmarks on several parameters and disproved several myths about MFIs. The company surpassed all records by breaking-even within the first year of operations. With an eye on cost-consciousness and productivity, the company challenged all previously held beliefs about the growth an MFI can experience in terms of profitability and number of clients in such a short span of time. Spandana was among the first to illustrate that an MFI can not only be socially uplifting but also commercially viable for all its stakeholders, thus paving the way for entities that are balancing social objectives with more tangible returns to enter the MFI space as lenders.

The company is consistently ranked amongst the best organisations in the country by rating agencies such as CRISIL and M-Cril. Microfinance Information Exchange (USA) in a study has ranked Spandana as being the most efficient MFI in South Asia, and among the top ten most productive MFIs in South Asia. Spandana has the unique ability to generate the highest profits with the lowest operating cost in South Asia.

About JM Financial India Fund

The JM Financial India Fund (the “Fund”) is a US$ 225 million private equity fund making growth capital investments in Indian companies. The Fund is a broad based, multi-sector fund that aims to tap the India growth story by investing in companies that are leaders or potential leaders in their respective industries. The JM Financial India Fund has already made three investments to date in Genesis Colors Pvt. Ltd., a high-end fashion lifestyle company that owns the brand Satya Paul; the Sona Group, a leading player in the auto-ancillary space; and International Tractors Ltd., a leading tractor manufacturer in India operating under the brand name Sonalika.

JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients. The Group has business interests in investment banking, institutional equity sales and broking, private and corporate wealth management, research, equity broking, portfolio management, asset management, commodity broking, NBFC activities and private equity. For more information, log on to www.jmfinancial.in

About Spandana

Spandana is committed to strengthening the socio economic status of poor women in rural and urban areas by providing technical and financial services on a continued basis for establishing their identity and self-image. It constantly endeavors to deliver efficient services to its members and remunerative returns to its investors by adopting cost-effective methods and by creating a culture of competence and excellence.