Tata Group Owns 30% of Glaceau

25/08/06 The Tata Group, India's most respected business conglomerate, and Glaceau, the maker of vitaminwater, today announced that they have signed a definitive agreement whereby Tata will invest $677 million in Glaceau to purchase the stake previously held by TSG Consumer Partners and provide additional growth capital. As a result of this investment, Tata will own 30% of Glaceau. This transaction ensures that Glaceau continues to meet the explosive demand for its vitaminwater brand fueled by America's health and wellness revolution. The Tata Group's investment in Glaceau strengthens its U.S. presence and provides opportunities for global growth for Tata's beverage businesses. This transaction, which was approved by Tata Sons' and Tata Tea's Boards of Directors at meetings held earlier today, is being made through Tata Tea GB Ltd., which includes Tetley Tea's operations worldwide.

"I want to thank all the people who have made vitaminwater so popular and told their friends about it. Now, millions more across the country looking for something healthier to drink can finally go out and get their own bottle of vitaminwater," said J. Darius Bikoff, Glaceau Founder and CEO.

"For more than 100 years, The Tata Group has built a global reputation on the fundamental premise that doing good can translate into doing good business. Glaceau exemplifies this philosophy in its vitaminwater product which was created to give people the nutrients they need every day," said R.K. Krishna Kumar, Vice Chairman of Tata Tea and a director of Tata Sons.

The Tata Group, headquartered in Mumbai, had U.S. revenues of more than $1.97 billion, and global revenues of $22 billion in 2005-6. The Tata Group has had a U.S. presence since 1945 and its growing North American beverage business, which includes Tetley Tea, Good Earth Teas and Eight O'Clock Coffee, is a key part of its global strategy.

Glaceau brands include vitaminwater, which is nutrient-enhanced, smartwater which is electrolyte-enhanced, and fruitwater, which is flavor-enhanced.

"The really good news for our employees, distributors and retailers who are responsible for our success is that this partnership ensures our continued independence. We appreciate and value TSG Consumer Partners' support for the Company and its management," said Mike Repole, President of Glaceau.

The Chairman of the company will be initially nominated by the Tata Group.

This transaction is subject to customary closing conditions including governmental notifications and approvals.

Rabobank International is serving as the exclusive financial advisor for this transaction. Shearman & Sterling LLP is serving as transaction counsel to Tata and Debevoise & Plimpton LLP is serving as transaction counsel to Glaceau.