Dr. Reddy’s Announces Collaboration with SkyePharma for New Product utilizing two of SkyePharma’s proprietary drug delivery systems

Hyderabad, India, 8 February, 2008: Dr. Reddy’s Laboratories (NYSE: RDY) today announced that it has entered into an agreement with SkyePharma PLC (LSE: SKP) to undertake a feasibility study of a product utilizing two of SkyePharma’s proprietary drug delivery systems. The costs of this study will be paid by Dr. Reddy’s. SkyePharma will also receive an upfront payment. If the feasibility study is successful, full development activities will begin later this year.

About Dr Reddy’s
Dr. Reddy’s Laboratories was established in 1984 in Hyderabad, India, and is a global pharmaceutical company with proven research capabilities. Dr. Reddy’s conducts research in the areas of diabetes, cardiovascular, anti-infectives, inflammation and cancer. The Indian based company produces finished dosage forms, active pharmaceutical ingredients and biotechnology products which are marketed globally, with focus on India, US, Europe and Russia.( www.drreddys.com )

About SkyePharma PLC
Using its proprietary drug delivery technologies, SkyePharma develops new formulations of known molecules to provide a clinical advantage and life-cycle extension. The Company has twelve approved products in the areas of oral, inhalation and topical delivery. The Group’s products are marketed throughout the world by leading pharmaceutical companies.
For more information, visit www.skyepharma.com

Disclaimer
This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

Dr. Reddy’s Contact Information:

Investors and Financial Analysts:
Nikhil Shah at nikhilshah@drreddys.com or on +91-40-66511532

Media:
Mythili Mamidanna at mythilim@drreddys.com or on +91-40-66511620