Bangalore, October 22, 2005: Avestha Gengraine Technologies Pvt. Ltd. ("Avesthagen") and TNO Quality of Life of the Netherlands today signed a strategic agreement to join forces in developing new products to combat the worldwide growth of obesity and related disorders. In this joint effort, longstanding knowledge from traditional Indian medicine and state-of-the-art genomic research will be integrated into a strategic Collaboration aimed at finding new plant-derived bioactives that manage and counteract development of overweight and associated later-stage disease development.

The agreement was signed by Avesthagen's CEO and Founder, Dr. Villoo Morawala-Patell, and Dr. Kees Ekkers, Managing Director of TNO Quality of Life. It was counter-signed as witness by the Dutch Minister of Economic Affairs and Deputy Prime Minister, Mr Laurens Jan Brinkhorst, who is heading the Dutch Business Delegation. In the envisaged Collaboration, both parties intend to combine the best of two worlds, harnessing a wealth of knowledge from India's rich history in traditional plant-based medicine by using the best models available and modern genomics-based research to unravel complex molecular networks in the human body. The Collaboration therefore is expected to yield new understanding in managing metabolic syndrome, diabetes, obesity and cardio-vascular diseases threatening many societies, by developing new dietary solutions at an early stage.

Announcing the signing of the agreement, Dr. Morawala-Patell said, "TNO has developed several very important human disease models in animals. They also have a unique dynamic model for kinetic studies in digestive physiology and a strong expertise in nutrigenomics research, which is also expressed by TNO's coordinating role in the multimillion Euro EU project on Human Nutrigenomics. Presently, India has approximately 30 million people suffering from diabetes. WHO predicts that the figure will touch 40 million in 2010. That is a large section of our population. Together we hope to address this problem."

Dr. Kees Ekkers praised "Avesthagen's strong technology and business model by combining a solid foundation into India's traditional medicine, having access to bioactive plant extracts, with expertise in modern plant genetic technologies and a highly entrepreneurial corporate management. This strategy has led to establishing a global network of partnerships with front-runners in different markets within its first five years."

In the coming weeks both parties will jointly work on establishing the details of the Collaboration, which will take the form of a joint venture with an expected value of several million Euros. Participation in the Collaboration by third parties is not excluded.

About Avesthagen:
Avestha Gengraine Technologies Pvt Ltd is India's leading Healthcare Technology Group focused on the convergence between food and pharmaceuticals and the development of preventive and potentially personalised medicine. Avesthagen has built and continues to build an integrated, systems biology approach of capabilities, infrastructure and technology that allows for and facilitates 'cross talk' between numerous disciplines, leading to innovative solutions and flexibility. The business model of the company is to combine IP & product development for long term sustainable revenue generation and value addition, with R&D services and collaborative research programmes for/with other parties to generate an early revenue stream and market focus. Avesthagen intends to partner at every stage in the value chain with appropriate partners, both public and private, for access to and exchange of technology and expertise, financial support, access to facilities, infrastructure and distribution channels and to leverage the 'India advantage' for the mutual benefit of Avesthagen as well as for its partners. For Avesthagen on the web: www.avesthagen.com

For further information:

Mr. Manan Bhatt
International Relations & Regulatory Affairs
Avestha Gengraine Technologies Pvt. Ltd.
Discoverer, 9 Floor, Unit 3
International Tech Park Bangalore
Whitefield Road, Bangalore
Phone: +91 80 2841 1665/2308/2770/2766
Fax: +91 80 2841 8780
Email: manan@avesthagen.com

About TNO :
TNO (www.tno.nl) is the largest science and technology organisation in the Netherlands, carrying out contract research for companies, government bodies and public organizations and employing about 5,000 people. TNO develops and applies innovative solutions for customers, tests and certifies products and services, and issues independent evaluations of quality. TNO also establishes new companies to market innovations.

TNO is active in five core areas:
· TNO Quality of Life
· TNO Defence, Security and Safety
· TNO Science and Industry
· TNO Built Environment and Geosciences
· TNO Information and Communication Technology

Under 'Quality of Life', TNO carries out research aimed at providing tangible solutions to problems in the areas food, health and pharma. TNO develops knowledge for national and international market clusters such as 'Agriculture and Nutrition' and 'Chemistry' and 'Pharmaceutics'. TNO offers services to food and pharma companies and also in active in forming spin-off companies with partners in research and industries.

For further information:
Mr. Roelof Jan Vink
Communication Manager
TNO Quality of Life
Phone +31 15 2696608
Email: Roelof-Jan.Vink@tno.nl