Highlights:
Results for the Quarter ended December 31, 2001

1. Revenues for the quarter stood at INR 1703.77 M an increase of 84.24% over revenues of INR 924.76 M for the corresponding quarter in the previous year. On a sequential basis revenues increased by 2.10% over the previous quarter ended September 30, 2001.

2. EBITDA for the quarter stood at INR 882.97 M an increase of 72.78% over the corresponding quarter in the previous year. On a sequential basis EBITDA increased by 8.72% over the previous quarter ended September 30, 2001.

3. EBITDA Margins for the quarter stood at 51.82% as compared to 55.26% in the corresponding quarter in the previous year and as compared to 48.66 %. in the previous quarter ended September 30, 2001. Margins have improved over the previous quarter despite a reduction in CD-R prices of 8 -10% in the current quarter due to improved volumes, cost reduction exercises and implementation of the company's new PC12D XT process which improved efficiencies and reduced material costs.

4. Net Profit for the Quarter at INR 601.49 M was up 62.46% over the corresponding period in the previous year and 11.12% over the previous quarter ended September 30, 2001.

5. During the Quarter the company added 2 more OEM customers and now supplies products to 9 top global brands. These global brands control approximately 44% of the world market.

6. Earnings per share (annualized) increased to INR 51.40 from INR 31.64 for the corresponding quarter in the previous year and from INR 46.26 in the previous quarter ended September 30, 2001

7. The company continued to launch new niche products like 90 minute CDR for video applications, High capacity 80 minute CDR (300 MB) and high speed write media (32x)

8. Expansion programme is on target

Outlook for the fiscal year ending March 31, 2002

We expect -

1. Revenue for the full year expected to be between INR 6000 Million to INR 6500 Million a growth of 70-84% over FYE March 31, 2001

2. Net Profit for the full year expected to be between INR 2000 Million to INR 2200 Million

3. Earnings per share expected to be between INR 43 to INR 48

1. Dividend for the year 2000-2001 aggregating to Rs.88754668 has been paid during the quarter:
2. The money raised through preferential issues during the year 2000-2001 has been utilised for the expansion project of the Company.
3. These results were taken on record at the Board meeting held on 15th January, 2002.

We have continued to show consistent and significant growth during the Quarter. Our expanding list of customers across the globe speak of their recognition of our high quality products and services said Mr. Deepak Puri, Managing Director.

Outlook for FY 02
Despite the unfortunate events on September 11, 2001 and the general economic slowdown, the markets have continued to grow and we reiterate our estimates of revenues and earnings for the year ending March 31, 2002 said Mr. Ratul Puri, Director.

Expansion Project
The ramp up of the Optical Media Project continued in full swing and as per target. The envisaged capacity of 760 million CDRs is expected to be in place before March 31, 2002. The company plans to move aggressively into higher value optical media products like DVDR. DVDRW and CDRW through most of CY 02 and is currently investing in R&D for process technology for these products.

Demand & Price outlook

Short term Outlook
The past quarter was a difficult quarter for the industry due to multiple factors, which resulted in price undercutting and intense competition. This was triggered by the events of Sept 11th and the subsequent temporary reduction in demand esp. from the US Markets. This poor consumer off take during September and October, created excess inventory in the channels and also resulted in inventory buildup with manufacturers. We anticipate most the excess inventory being cleared out by Feb 2002, and expect prices to stabilize by March 2002.

Medium Term Outlook
The outlook for the Industry going forward looks positive on the backbone of significant drive shipments, higher flow of digital content and user friendly features of the product. Using different forecasts it is estimated that demand could increase to more than 12 billion units by the end of CY 2004 (estimated demand for CY 2001 estimated at 5.7 billion) reflecting a CAGR of over 28%. According to IDC, the number of write drives is expected to increase to more than 600 million in 2005 as against only 120 million drives in 2001 reflecting a five fold increase in the next four years.

In line with industry expectations, there is expected to be large volume growth in Digital Versatile Disk Recordable (DVDR) due to robust drive sales. According to forecasts, DVDR drive population is expected to increase from 1 million in 2001 to 197 million in 2005. Furthermore, the domestic market (Recordable and Pre-recorded ) is growing much faster then earlier envisaged. Both segments offer opportunities to Moser Baer to increase market share and margins.

Demand growth, Industry consolidation and relatively significant entry barriers are expected to see reasonable product prices and margins for Industry players in the medium term. With continuing demand growth on the backbone of robust drive sales, it is envisaged that despite the possibility of further pressure on prices in the current quarter, prices are expected to firm up and remain fairly stable in the medium term said Mr. P.M.Pai, President.

Management team build up
During the quarter the Company also brought on board Dr. Brian Bartholomeusz, Vice President Strategic Business Initiatives), based on the West Coast, to reinforce its R&D and strategic planning efforts. Dr. Bartholomeusz, an Industry veteran, has held key positions in companies like Eastman Kodak Company and Multi Media Masters prior to joining Moser Baer. He has issued several patents,had more than 20 publications and has been part of various Consortia related to the Optical Media industry.

Research & Development
The company, as part of its R&D efforts, has launched a number of process technologies and non-standard products.

Moser Baer, currently amongst the most efficient producers of CDR, has already finalized its DVDR process. As it's current production lines are DVDR / CDR flexible the company is ready to capitalize on growing DVDR demand. Additionally, the company which is currently in the unique position of running Cyanine / Pthalocyanine / Azo dye processes simultaneously, is also ready with it's 40x write media, being amongst the first companies in the world with this product.

These R&D efforts are expected to not only result in cost reduction but at the same time enable to switch to higher margin products.

About the company
Moser Baer was established in 1983. The Company has successfully developed cutting edge technologies in the Optical Media Recordable Data Storage Markets, constantly innovating and introducing new products and technologies. An emphasis on high quality products & services has enabled Moser Baer to emerge as one of India's high tech companies with a 10% share of the global markets. The company reported Total Revenues of INR 3519.12 Million and Net Profit after tax of INR 1385.67 million for the year ended March 31, 2001. For further information please contact Rakesh Govil at + 91 (11) 643 9608 or visit us on the World Wide Web at www.moserbaer.net

Disclaimer
Certain statements in this release concerning future growth prospects involve risks and uncertainties, especially those relating to future Industry outlook and our ability to manage growth and intense competition within the Industry. Actual market conditions and our performance may differ from our guidance.