Fabindia/EAST

Fabindia acquires a 25% stake in EAST Ltd - the UK based clothing retailer*

NEW DELHI January 6, 2009 – Fabindia Overseas Pvt Ltd has acquired a 25% share in EAST, a company that has established a niche in the UK fashion market through its focus on retailing garments for women in natural fabrics and with a distinct eastern influence. Fabindia has an option to acquire the balance shares in a phased manner over the next 2-3 years.

      Fabindia's move is seen as creating an opportunity to expand the international markets for Fabindia and partner in the expansion of the EAST brand to India, Middle East and other emerging markets.

      Speaking on the occasion, William Bissell, Managing Director, Fabindia, said, "The synergy between the two companies is apparent not only in the product but also in approach and sourcing and we look forward to a mutually rewarding relationship with realization of significant opportunities for both."

      Clive Pettigrew, one of the founders of EAST and who will continue on the Board, said, "It is very fortunate for EAST to have formed a new partnership with such like-minded people. We have long lasting relationships with several Indian companies already but this investment by Fabindia will bring new benefits to our Company, both in considerably adding to its Indian sourcing potential and also facilitating the brand's international expansion."

      Fabindia Director Sunil Chainani will join the four-member Board of EAST.

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 ABOUT FABINDIA

      Fabindia Overseas Private Limited is India's largest private retail platform for a wide range of products produced using craft-based processes that derive from traditional skills and techniques. The company, established in 1960, links contemporary urban markets with traditional craft-based, largely rural producers, offering merchandise and products that emphasize an alternate to the mass produced.

      Fabindia has 97 stores across India and six outlets overseas.

 ABOUT EAST

      EAST originated in 1986, but adopted its new name and brand identity in 1994. The company retails vibrant, ethnically inspired clothing currently from 52 stores and 25 concessions (including 18 in John Lewis) and has developed a loyal customer base for women's apparel in the United Kingdom.

* Compass Advisers acted as financial advisor to Fabindia in the transaction.