Eicher Motors Update

Eicher Motors Ltd has informed that pursuant to the provisions of SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, the members of the Compensation Committee of the Company at its meeting held on October 22, 2007, had granted approval for further grant stock options to the eligible employees of the Company under the Employee Stock Option Plan —2006 ("ESOP 2006") and subject to the following conditions:

1. Date of the grant: October 22, 2007

2. The eligible employees are in the category of Deputy General Manager and above excluding the promoters and Directors who are holding 10% of the equity capital of the Company;

3. Exercise Price : Rs 462/- per share which is the latest closing market price (Rs 461.80 per share) on NSE / BSE as on October 19, 2007 (i.e. prior to the date of the meeting of the Compensation Committee).

4. Vesting period of 3 years from the date of the grant i.e. upto October 21, 2010 in terms of the Scheme:

5. The exercise period from October 22, 2010 till October 22, 2017 in terms of the Scheme.

6. Total number of employees covered under the Plan is 50;

7. The list of the eligible employees and the grants to each employee is duly approved and signed by the Managing Director of the purpose of identification. There is no employee who is being offered grants more than 1% of the issued paid up capital;

8. Total Fresh grants being approved now under the "ESOP 2006" are 289,200 number of equity shares of Rs 10 each. Cumulative grants after including this come to 546,500 Nos. equal to 1.95% of equity capital.