Bharat Forge of India Acquires Majority Stake in China FAW Forging

        E. J. McKay Acts as Exclusive Financial Adviser to Bharat
                         Forge in the Transaction

MUMBAI, India, Dec. 13 -- Bharat Forge Limited (BFL) of India today signed a joint venture (JV) contract with China FAW Group to acquire its forging business. The contract was signed in Mumbai between Mr. Dong Chunbo, Chairman of FAW Forging and Mr. Baba Kalyani, Chairman of Bharat Forge, witnessed by James Z. Li, Chairman of E. J. McKay (EJM), the investment bank that advised BFL on the transaction. The occasion was graced by the speech of Mr. Zhu Yanfeng, CEO of FAW Group.

This landmark transaction, the largest acquisition in China by an Indian company in history, is representative of the kind of work E. J. McKay is engaged in, that of ''advising a highly selective group of key clients in their significant cross-border transactions that create measurable synergy and transform the economics of the impacted industry,'' commented James Z. Li, Chairman of E. J. McKay.

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  About Bharat Forge

Bharat Forge is the flagship company of the US$1.5 billion Kalyani Group, which has significant presence in many key sectors of the Indian economy. With world-class manufacturing facilities across nine locations -- two in India, three in Germany and one each in Sweden, Scotland, and North America, BFL is among the largest automotive component companies in India, and the second largest auto forging company in the world. By joining hands with FAW, BFL instantly becomes the largest auto forging company in China, and is well positioned to become the largest auto forging company in the world.

About FAW Group

With a total revenue of US$14 Billion and an output of over 1 million vehicles a year, FAW is the largest automotive group in China and one of the largest auto companies in the world. The company has existing joint ventures with world leaders such as Audi, Mazda, Toyota, Volkswagen to manufacture passenger cars. FAW also has one of the largest commercial vehicle manufacturing companies in China, and many subsidiaries in component manufacturing, forming joint ventures with industry leaders such as Eaton, TRW, and Johnson Control. FAW is considered to be the cradle of the Chinese industry, renowned for the legendary Red Flag sedans it made for Chairman Mao.

About E. J. McKay

E. J. McKay is an independent global investment banking firm specialized in structuring complex cross-border mergers & acquisitions and merchant banking transactions. With a presence in 15 major financial centers around the world and a dedicated focus on China, the firm advises transactions both inbound and outbound, representing clients both local and multinational.

  For further information, please contact:

   Mr. Kamal Rungta, Partner - India
   E. J. McKay & Co., Inc.
   Tel:   +91-20-2683-7941 or +91-98230-70099
   Email: kamal.rungta@ejmckay.com
   Web:   http://www.ejmckay.com/