Dr. Reddy's Laboratories Limited will terminate its global depositary shares (GDS) facility on July 8, 2001 and not on June 6, 2001 as previously announced, the company said in a release issued today.

The company extended the date in order to permit the payment of a newly declared dividend to the GDS holders prior to the termination of the GDS facility. On May 30, 2001, the Board of Directors declared a dividend of Rs 4 per equity share outstanding as of March 31, 2001. The share transfer book will remain closed from July 3, 2001 to July 6, 2001 and shareholders whose names appear on the share transfer book as of July 6, 2001 will be eligible to receive this dividend.

The company issued 4,301,076 GDSs representing 4,301,076 equity shares of the company, par value Rs.10 ("Shares"), in a private placement in 1994 pursuant to Regulation S and Rule 144A under the Securities Act of 1933 (the "Securities Act").

The GDSs are listed on the Luxembourg Stock Exchange and each GDS represents one Share. As of March 31, 2001, there were 1,789,285 GDSs outstanding representing 1,789,285 Shares. All the GDSs issued in 1994 and the Shares underlying them may now be freely resold without restrictions under the Securities Act.

Once the facility is terminated, the Shares underlying the GDSs will be deposited in Dr. Reddy's American Depositary Share ("ADS") facility with Morgan Guaranty Trust Company of New York as depositary ("the Depositary"). Fees to registered holders of GDSs related to the termination of the GDS facility and subsequent deposit of the underlying Shares into the ADS facility will be waived by the Depositary.

GDS holders who wish to hold their withdrawn Shares in the form of ADSs need take no action. They will receive notification with respect to their holdings of ADSs once the termination and deposit is completed, which is now expected to be July 8, 2001.

Each ADS under the ADS facility represents one half of one Share. If 1,789,285 Shares are all deposited into the ADS facility, there will be 3,578,570 ADSs issued. Dr. Reddy's ADSs are listed on the New York Stock Exchange, and began trading on April 11, 2001.