Kinetic to launch seven international bestseller scooters from Italjet over the next two years

Company press release, January 13, 2004

New Delhi

In a strategic move aimed at asserting its dominance on the modern scooters category, Kinetic Motor Company announced that it had entered into a special alliance with renowned Italian two wheeler maker Italjet for modern scooters. Under this alliance, Kinetic has acquired complete manufacturing and distribution rights for seven bestselling brands from Italjet's range of scooters. These rights include sale in India as well as global exports. The seven scooters are expected to be launched in a phased manner over the next two years, and will revolutionalize the modern scooters segment in India. The scooters portfolio comprises an exciting variety of designs from retro, modern, futuristic to maxiscooters, from 75cc to 250 cc engine capacities.

Additionally, under the agreement, Mr. Leopoldo Tartarini, the founder of Italjet will also design scooters specially for Kinetic. Mr. Tartarini is a world acclaimed two wheeler designer whose creations form part of the permanent exhibits at world's most prestigious art galleries and museums including the Museum of Modern Art and The Guggenheim Museum at New York. He has also designed scooters and motorcycles for many of the world's leading two wheeler companies including Ducati, Gilera, Piaggio, Yamaha and others.

Announcing this tie up, Mr. Arun Firodia, Chairman of Kinetic Group said, "Italy is the birthplace of scooters, and Mr. Tartarini's creations have been hailed as breakthrough designs across the world. I believe we have pulled off a coup of sorts by acquiring the domestic as well as international rights for seven of Italjet's bestselling scooters. We are also excited that Mr. Tartarini has agreed to design for Kinetic. With this, we look at becoming the most aspirational and "happening" brand in scooters. In the past few years, the modern scooters category in the country has been posting very high growth rates. It has reached a level of 7.5 to 8 lakhs a year, double of geared scooters which now sell about 4 lakhs a year. I expect that this number will grow to 20 lakhs a year over the next six years. The basic proposition of modern scooters - comfort, convenience, universal appeal - is very strong. With this new world class range, Kinetic will be poised to take full advantage of this potential. This will also give a big boost to our exports across the world. I think today is a landmark in the history of Kinetic and Indian two wheeler industry."

Echoing Mr. Firodia's sentiments, Mr. Leopoldo Tartarini, the founder of Italjet said," It gives me great pleasure to be here today. India is one of the largest two wheeler markets in the world and I look forward to designing scooters for this market to be made by Kinetic. I was impressed with the company's lineage, focus on design, high quality manufacturing and management, which I found to be comparabale with the best in the world These factors led me to choose Kinetic as my partner."

Kinetic Motor Company Limited is the nation's pioneering and leading manufacturer of modern scooters with electric start and gearless variomatic transmission. Kinetic revolutionized the scooter segment in the country when it launched the automatic scooter for the first time in 1984. Today, the company makes a range of modern scooters from 75cc to 115 cc engines and contemporary styling with popular brand names like Nova, Zoom and Zing. It is also a leading exporter around the world.

Mr. Leopoldo Tartarini is the founder of Italjet - one of the most prestigious names in Italy. Italjet is headquartered in San Lazzaro De Savena (Bologna), Italy. It was founded in 1959, and has designed and produced over 150 scooters and motorcycles, which have been hailed as breakthrough designs by the motoring world. Italjet scooters. Italjet scooters and motorcycles are sold and ridden across the world including Europe, USA, southeast Asia, Japan, Australia, etc. This is the first time that the Italjet scooters will be made available in India.

For Further information please contact:

Jyotsna/ Sulakshana

Hanmer & Partners

Tel : 2921 4793

Email :jyotsna@hanmerpr.com

Vismaya Firodia

Kinetic Engineering Ltd

Tel : 9520 - 7474301

vismaya@kineticindia.com