News Release

May 18, 2001

Early Redemption of Ashirwad Deep Discount Bonds and Akshay Monthly Income Bonds issued in 1996 by ICICI

ICICI Limited had made a public issue of unsecured redeemable bonds in the nature of promissory notes aggregating Rs. 1,000 crore including a Placement Portion of Rs. 600 crore offered under Book Building vide prospectus dated April 24, 1996. The Bonds issued were Ashirwad Deep Discount Bonds, Akshay Monthly Income Bonds, Suvidha Regular Return Bonds and Shubh Laabh Money Back Plus Bonds. In respect of Ashirwad Deep Discount Bond and Akshay Monthly Income Bond, an option for early redemption had been given to both the Bondholder(s) and the Company.

As per the terms and conditions of the prospectus, both the Bondholder(s) and the Company have the right to exercise early redemption option on specified dates. The first date for exercising this call/ put option is on July 15, 2001. In accordance with the above, ICICI would be calling back the Bonds.

At the same time, ICICI is offering the eligible Bondholders an option to switchover their existing holding into Fixed Deposits bearing special interest rates. As a policy measure, ICICI also discontinued the practice of putting any call and put options in its public issues of bonds after March 1997.

Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "would", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-xlooking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement the bond redemption programme, our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For further press queries :
Contact: Madhvendra Das at +9122 653-6812 or
email: das@icici.com.