Swaraj Mazda Limited (Head Office: Chandigarh, Punjab, Managing Director: Yash Mahajan), in which Sumitomo Corporation (Head Office: Chuo-ku, Tokyo, President and CEO: Motoyuki Oka) is the largest shareholder, entered into an agreement with Isuzu Motors Limited (Head Office: Shinagawa-ku, Tokyo, President: Yoshinori Ida) on June 30, 2006 regarding the production and marketing of Isuzu's medium-duty buses in India.

Swaraj Mazda has been engaged in the production and marketing of light-duty trucks and buses since its establishment in 1983, and, as a medium-sized established commercial vehicle manufacturer, currently has a network of about 130 dealerships distributed throughout India. The company sold about 12,000 vehicles in FY2005, accounting for a 3.4% share of the total commercial vehicle market in India. The automobile market in India has been expanding at the rate of more than 10% annually thanks to the dramatic economic development of the country in recent years. Because of this business boom, and also due to the rapidly developing highway network, the demand for higher-performance trucks and buses has been growing quickly. To meet this demand and contribute to further economic development of the country, Swaraj Mazda has decided to form technical assistance alliance with Isuzu to introduce new products that satisfy the requirements of the market.

Although the agreement the companies concluded concerns the transfer of technologies for manufacturing the medium-duty bus platform, Swaraj Mazda is also planning to purchase vehicles from Isuzu as completely knocked down (CKD) kits and procure some components from local suppliers from the beginning of production at its factory. Bus bodies will be mounted on their platforms locally at Swaraj Mazda's factory, and the completed buses will be sold at about 30 selected dealerships of the company's sales network covering the entire subcontinent. Production will begin in 2007, with a first-year (2007) sales target of 100 vehicles. The company is expecting that figure to increase to 1,000 by 2009.

Swaraj Mazda was established in 1983 as a joint venture of Mazda Motor Corporation, Punjab Tractors in India, and Sumitomo Corporation. Swaraj Mazda was manufacturing light-duty trucks under Mazda's technical assistance until October 2004 when Mazda withdrew from the program. Sumitomo Corporation then took over Mazda's entire interest (15.6%) in Swaraj Mazda in August 2005 at the request of Mazda, thereby increasing its stake in the joint company to 41%. Although the current technical alliance between Swaraj Mazda and Isuzu covers only medium-duty buses, Swaraj Mazda is planning to examine the possibility of producing Isuzu's light-duty trucks and buses, and medium-duty trucks as well, locally in the future if the current project proves to be successful.

Outline of Swaraj Mazda
(1)	Registered name:	Swaraj Mazda Limited
(2)	Establishment:	July 1983
(3)	Business:	Manufacture and sale of light-duty trucks and buses
(4)	Location of Head Office:	Chandigarh, Punjab
(5)	Managing Director:	Yash Mahajan
(6)	Paid-in capital:	104,938,000 rupees (approx. 262 million yen)
(7)	Listing stock exchange:	Bombay Stock Exchange (BSE)
(8)	Major shareholders:	Sumitomo Corporation 41%, Punjab Tractors 14%
(9)	Sales:	Approx. 7 billion rupees (approx. 17.5 billion yen) for the term ended March 2006
(10)	No. of employees:	Approx. 1,100