The Manager-Listing
National Stock Exchange of India Ltd.
Exchange Plaza,
Bandra-Kurla Complex, Bandra (E),
Mumbai 400 051

The Secretary
Bombay Stock Exchange Ltd.
Dalal Street, Fort
Mumbai 400 001

Dear Sirs

This is to inform you that the Board of Directors of Tata Steel Limited ("Tata Steel") at its meeting held on 20th October 2006, has approved acquisition of the entire issued share capital of Corus Group plc ("Corus") ("Acquisition"), at a price of 455 pence in cash for each share valuing Corus at GBP 4.3 billion.

Corus is Europe's second largest steel producer with revenues in 2005 of GBP 9.2 billion, and crude steel production of 18.2 million tons primarily in U.K. and Netherlands. Corus is primarily engaged in the manufacture of semi-finished and finished carbon steel products. Its activities are divided into three main divisions: strip products (including coated and uncoated strip and welded tubes, sold both as coil and sheets), and the distribution and building systems division, which operates as a link between Corus's manufacturing operation and its customers. It has a global network of sales offices and service centres.

The Acquisition is proposed to be made by Tata Steel U.K., a wholly-owned indirect subsidiary of Tata Steel, recently incorporated in the United Kingdom for the purpose of completing the Acquisition. The said Acquisition is proposed to be effected by means of a scheme of arrangement under Section 425 of the (English) Companies Act 1985; subject to High Court of Justice in England and Wales and Corus' shareholders approvals being obtained.

Acquisition is proposed to be funded through its own cash resources and loans raised by Tata Steel and its subsidiary companies formed for the purpose of this acquisition.

The Acquisition of Corus by Tata Steel is consistent with Tata Steel's stated objective of growth and globalization. Growth at Tata Steel has been focused towards new, higher end-markets and a more sophisticated customer base. Tata Steel has identified a number of specific benefits that it sees from a combination with Corus. Enhanced scale will position the combined group as the fifth largest steel company in the world by production, with a meaningful presence in both Europe and Asia. The powerful combination of low cost upstream production in India with the high end downstream processing facilities of Corus will improve the competitiveness of the European operations of Corus significantly. The combination will also allow the cross-fertilisation of research and development capabilities in the automotive, packaging and construction sectors and there will be a transfer, from Europe to India, of technology, best practices and expertise of senior Corus management. In addition, Tata Steel will retain access to low cost raw materials and slab for the enlarged group, and exposure to high growth in emerging markets, whilst gaining price stability in developed markets.

Tata Steel also believed that between the two companies, there exists a high degree of cultural compatibility, which would facilitate an effective integration of the businesses over time.

Tata Steel expects to lead the enlarged group with a combined management team. Manufacturing will be organized so as to produce slabs/ primary steel in low-cost facilities and produce high-end products in proximity to client base - in both Europe and India.

This announcement is not intended to and does no constitute, or form part of, any offer or invitation to purchase any securities or the solicitation of any vote or approval in any jurisdiction.

Submitted for your information

Yours faithfully,
Tata Steel Limited

Sd /-
J C Bham
Company Secretary

Copy to: The Secretary, Calcutta Stock Exchange Assn. Ltd.

7, Lyons Range, Kolkata - 700 001