ICI India to divest its Uniqema Business

At its meeting held today, the Board of Directors of ICI India Limited have
recommended for approval by the shareholders the sale of the Company's Uniqema
Business as a going concern to the Croda group, a well established Functional Specialties
group based in the UK. The total consideration to be received for this sale will be about
Rs 260 crores.

Following the strategic decision by ICI PLC announced in February 2006 to explore
divestment options for its Uniqema business, it has since finalized sale of its global
Uniqema Business to Croda International Plc. The Uniqema business of ICI India is
closely integrated with the Uniqema Business of the ICI Group. Given the
interdependency of the India business with the global Uniqema business, the Board
believes it will be in the best interests of all the shareholders, concerned employees and
its customers that the India business is also divested to the Croda group.

ICI lndia had established its Uniqema Business in the 1960s (as part of Crescent Dyes &
Cliemicals, which has since merged into ICI India in 1982) with technology and product
development support from the ICI Group. The business has a manufacturing site at
Thane and the net sales revenue from the business in the financial year ended 3 1 March
2006 was Rs 143 crores.

The business proposed to be transferred to the Croda group will include its portion of
Thane manufacturing facility and about 200 employees currently working with the
business. The transaction is expected to be completed within the current fiscal year, after
obtaining the approval of ICI India's shareholders through Postal Ballot and other
approvals as may be required.

Gurgaon
29 June 2006

ICI lndia Limited

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Telephone Codes :Country 91, City 124 (From Delhi 95124)
ICI lndia Limited is a subsidiary of Imperial Chemical Industries PLC of England.
Registered Office 34 ChowrlngheeRoad Kolkata 700 071