Mahindra Group Acquires Majority Equity Stake in Bristlecone, Inc.

New Investment to Drive Growth in Europe and Asia and Additional Verticals

SAN JOSE, Calif., Feb. 9 -- Bristlecone, Inc., a leading provider of supply chain and business process solutions, and an implementation and development partner of SAP, announced today that they have entered into a definitive agreement for the acquisition of majority stake in Bristlecone by the Mahindra Group. The transaction is expected to close shortly, after receipt of customary approvals from Foreign Investment Promotion Board of India and Reserve Bank of India.

Along with this transaction, the Mahindra Group will consolidate five existing subsidiaries -- Mahindra Consulting Ltd., Mahindra Consulting (Singapore) Pte. Ltd., Mahindra Consulting GmbH, Mahindra Consulting Inc. USA and Mahindra Intertrade (UK) Ltd -- and Bristlecone into a new subsidiary named Bristlecone Limited.

Anand Mahindra will serve as the Chairman of Bristlecone Limited, Anjanikumar Choudhari, currently Executive Vice President at Mahindra & Mahindra, as Executive Vice Chairman, and Mr. Padman Ramankutty, the current CEO of Bristlecone, as President & CEO. The Mahindra Group intends to invest an additional US$7.0 million into the company to fund its growth.

Upon completion of this transaction, Bristlecone will have expanded consulting presence in North America, Europe, Asia and the Middle East. The company's offerings include enterprise solutions, supply chain management and managed services with a focus on manufacturing and supply chains. The combined company's vertical expertise will extend to the Automotive, Apparel and Footwear, Semiconductor, Consumer Goods and Oil & Gas sectors. Bristlecone's service lines will encompass all SAP solutions including SCM, ERP, CRM, BW and NetWeaver. Following the acquisition, Bristlecone will offer mySAP All-in-One solutions for Small and Medium Businesses (SMBs) in the high tech, semiconductor, automotive and oil & gas sectors.

Anand Mahindra, Vice Chairman and Managing Director of Mahindra & Mahindra Ltd., is also the President of the Confederation of Indian Industries, India's apex industry association. Commenting on the acquisition, he said, "Our global strategy is to invest for growth in key markets, such as the US. We already have a successful tractor business in the US, which has grown to $100 million this year. We are investing through this acquisition to expand our presence in Business Process and Technology consulting. With the US economy now on an upturn, we believe this is the opportune time to commit further investments in this key market."

Anjanikumar Choudhari, Executive Vice Chairman of the new company said, "We see a major opportunity to aggressively tap the business potential in the U.S. and other international markets. We believe Bristlecone's brand equity will provide a strong catalyst to establish a significant presence in the U.S. market."

Padman Ramankutty, CEO of Bristlecone Inc., said, "This investment provides us with the capability to offer our Global 2000 customers, a broader and comprehensive set of consulting services. The combined entity will have over 500 consultants focused on manufacturing and supply chain solutions and a significantly enhanced base of SAP expertise. We look forward to strengthening our SAP and other consulting and development partnerships around the globe."

Bristlecone was advised by Cipher Securities (I) Private Limited, in the transaction.

About Bristlecone, Inc.:

Bristlecone Inc. is a business process and technology consulting firm based in San Jose, California. It offers a full range of consulting and services around mySAP suite of solutions. Bristlecone has been continually acknowledged by industry analysts as a leader in consulting and solutions for Supply Chain Management. Its clients include large global and multi-national companies such as Nike, Motorola, Shell Oil, Palm and HP. For more information, www.bcone.com.

About The Mahindra Group:

The $ 1.4 billion Mahindra Group is a leading manufacturer of multi-utility vehicles and tractors in India with interests in key sectors like information technology, infrastructure, and financial services.

A leading player in all the business segments it operates in, the Group is the market leader in tractors and in the utility vehicles segment. The company's Farm Equipment Sector has been the market leader in the tractor segment for 20 consecutive years and is not only one of the 5 largest tractor manufacturers in the world but also the only tractor company in the world to receive the Deming Prize for Total Quality Management. Mahindra USA has a successful tractor marketing operation based in Houston TX and Calhoun GA with a turnover of over US$100 million. Other subsidiaries of the Mahindra Group in the US include Mahindra Consulting Inc. and MBT International Inc.

Over its 55 years of operations, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution and a reputation for professionalism and corporate values.

For further information, please visit www.mahindra.com.

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