July 12, 2005  

Notice To Stock Exchange

Mr. Yogesh Bhambardekar
Ms. Tejeswini Joshi
Mumbai Stock Exchange
Rotunda Building, 1st Floor
Mumbai Samachar Marg
Mumbai – 400 001

Dear Sir/Madam,

This has reference to your fax message dated July 11, 2005 regarding newspaper reports on our divestment in Pathnet India Private Limited.

Please refer our letter dated August 31, 2004 addressed to Mr. Yogesh Bhambardekar (copy enclosed) wherein we have mentioned that Dr. Reddy’s has expressed its intention to Gribbles Pathology (VIC) Pty. Ltd. to exit the joint venture as it does not fit with Company’s strategic efforts.

The Company has now divested its 49% stake in Pathnet India Private Limited to Gribbles Pathology (VIC) Pty. Ltd. We would like to inform that sale of our stake in Pathnet India Private Limited will not have any material impact on Company’s operations and performance.We do not have any comments on the future plans of Pathnet India Private Limited as mentioned in the newspaper reports.

With regards,

V Viswanath
Company Secretary