Suzlon Announces Intention to Enter into Affiliation Agreement with REpower
Pune, India September 2, 2008

Suzlon Energy Limited, the world’s fifth largest wind turbine maker with 10.5% of global market share*, announced its intention to seek a domination and profit and loss transfer agreement between its German subsidiary SE Drive Technik GmbH and REpower Systems AG.

Suzlon presently holds approximately 66% of shares in REpower, and has signed an agreement with Martifer SGPS SA of Portugal for acquisition of Martifer’s total stake in REpower, which will take Suzlon’s holding in the company to approximately 90%.

Mr. Tulsi Tanti, Chairman and Managing Director - Suzlon Energy Limited, stated: “We have informed the REpower management of our intention to seek a domination and profit and loss transfer agreement, the process now will follow due course under German law.

“The domination and profit and loss transfer agreement follows naturally after our position as the largest shareholder in REpower, and will allow both companies to benefit from even greater synergies. We believe this will allow us to unlock great value and benefit both companies in the long term.”

Suzlon earlier signed an agreement with Martifer for acquisition of Martifer’s total stake, approximately 22.48%, in REpower for a total consideration of EUR 270 million. This agreement is slated to be completed by 15th December 2008, and will consolidate Suzlon’s total holding in REpower to approximately 90%.

Suzlon made its initial tender offer for shares of REpower supported by Martifer in February, 2007. Suzlon acquired approximately 30% in REpower in June 2008 from major shareholder Areva of France, taking Suzlon’s total holding in REpower to approximately 66%, prior to the acquisition of Martifir’s holding in the company.

Suzlon Energy Limited is one of the world’s leading players in wind energy. The company has come to the fore of the business by strategically focusing on R&D, innovation, an integrated value chain, and entering into emerging and high growth markets to drive sustainable growth.

Given the truly global nature of its business, Suzlon has its Group Management Center in Amsterdam, Netherlands, has corporate offices in Pune, India. The company’s global spread reflects in its projects and markets portfolio - extending across Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India, Italy, Portugal, Spain, Turkey, the Netherlands, Nicaragua, and the United States.

Suzlon’s R&D effort includes a highly successful practice of leveraging skill and knowledge pools in the industry and allied areas the world over. This has resulted in a R&D network located across geographies known for their leadership in the field – Suzlon today drives turbine development from India and Germany, and aerodynamics research in the Netherlands. Suzlon matches innovation with quality, with systems certified by Det Norske Veritas (DNV) to ISO 9001:2000 standards.

Suzlon is a vertically integrated wind turbine manufacturer – with manufacturing capability along the full value chain – ranging from components to complete wind turbine systems. The company has established manufacturing facilities in India, China and the United States, to support the global spread of its operations. The company currently has a combined manufacturing base of 2,700 MW of annual capacity, and is undertaking an aggressive expansion program to expand its base to 5,700 MW of capacity in FY2008-09.

The success of the company’s strategy is seen in its growing market share, repeat orders, and breakthroughs into new markets. Suzlon ranked as the world’s fifth leading wind turbine manufacturer with over 10.5 % of global market share in 2007. The company has ranked as the leading manufacturer in the Indian market for nine consecutive years, maintaining over 50% market share.

Suzlon’s true strength is seen not only in its technology, quality and market share – but also its people. The Suzlon Group boasts one of the largest teams in the wind energy business, totaling over 13,000 people from over a dozen nationalities in operations around the world. Suzlon in its vision for future growth aims to rank among the top three wind turbine manufacturers worldwide, maximizing growth while maintaining margins to generate maximum value for all stakeholders.

Source: Suzlon