G2 acquires majority stake in leading activation and relationship marketing agency in India

Company Brief

New Delhi, April 1, 2008

G2 Worldwide, a Grey Group company, and a leading global marketing services network, specializing in digital communications, direct marketing, shopper marketing and design, announced today that it has agreed to acquire - subject to regulatory approval - a majority stake in Chateux Hospitality Pvt. Ltd, one of India's leading companies in customized solutions in activation marketing and relationship management. The company operates in India under the RAMS brand name.

Founded in 1998, Chateux Hospitality employs 148 people and is based in Gurgoan, with offices in Mumbai and Bangalore. Clients include American Express, GE, GlaxoSmithKline, AIG, Nestlé, Eli Lilly, HP India, and Hero Honda.

This investment represents the latest initiative in G2's growth strategy, as the agency continues to expand and further develop its capabilities on a global scale. Last year, G2 acquired Refinery, one the last remaining leading independent digital shops in North America, and Star Echo, a leading agency in China, which offers activation marketing throughout the region.

Joe Celia, Global Chairman and CEO, G2, said, "In 2008 we are committed to deepening G2's position as a global activation communications leader, and we are making progress with both our acquisitions and client growth in this area. Our acquisition of Chateux Hospitality advances us further toward our goal of creating a true end-to-end model, capable of delivering both channel and consumer insights on a global scale – unlike any other agency in the marketplace." Celia added, "Continued growth will remain a priority for us this year as our capabilities broaden in the critical APAC region and beyond."

Nirvik Singh, CEO and Chairman, G2, Asia Pacific, and President, Grey Group SEA said, "The market for activation marketing services in India is growing

exponentially and Chateux Hospitality is one of the few players of scale in a highly fragmented market. The co-founders, Sameer Karan Mutreja and Sachin

Mutreja are extremely bright, young, and talented entrepreneurs who have penetrated the lucrative hospitality and retail sectors successfully. This acquisition will cement G2 India's position as a real player in providing total, integrated solutions to our clients and is totally in line with our aggressive strategy of expanding G2 in fast growing markets, and deepening its specialized marketing services capabilities in direct marketing, branding and design, event management, interactive and shopper marketing across Asia."

Sameer Karan Mutreja, co-founder and Managing Director of Chateux Hospitality said, "At the end of the day the success of any business is decided by the value it offers to its people, be it clients, partners, or employees. With global integration this industry, like many others, is beginning to consolidate. With G2's strength, RAMS relationships will be able to offer a series of BTL services ranging from events, MICE, loyalty solutions and retail marketing, to many more clients across the globe, enhancing value for their marketing budgets. Under Nirvik's leadership I find tremendous synergies in the G2 and RAMS culture, always a great starting point for any relationship. Together we will provide a greater value proposition to the customer, a greater business opportunity to vendor partners, and a great career opportunity to current and future employees. On behalf of all the stake holders and employees I can say with confidence that we are extremely excited about this merger."

Chateux Hospitality's penetration and deep understanding of the industry and the potential of India as an activation marketing services hub in the region, combined with G2's existing client base and relationships is expected to accelerate G2's goal of being a significant global player in total integrated communications solutions over the next few years.

For further information, please contact:

GCI GROUP: changeRULES

Rupa Dash

Mob: +919871760327

e-mail: rupa_dash@greyindia.com