Chennai, 7th September, 2009 : Ashok Leyland, the Hinduja Group flagship, signed a Memorandum of Understanding today with Magma Fincorp Limited (MFL) to provide financing to end customers of commercial vehicles. The MoU, which was signed at Chennai by Mr. Rajive Saharia, Executive Director ? Marketing for Ashok Leyland and Mr. Ravi Todi, Jt. Managing Director for MFL, paves the way for enhancing sales by improving financing coverage in the Eastern and Northern markets. MFL brings to the table their strong distribution and service network of 150 offices across the country with a strong focus on semi-urban and rural areas.

Speaking on the occasion, Mr. Rajive Saharia said, ?In a market dictated by quality, transparency and customer service, this strategic partnership will go a long way in aiding the sales process. It will help leverage the areas of strength of the two partners and significantly increase the ?feet on street? to promote their respective product offerings. It will definitely lead to an increase in the Sales and Financing quantum of both entities.?

Mr. Ravi Todi, said, ?Through this association with Ashok Leyland, we can both provide superior financing options for their customers and also have the opportunity to broadbase the commercial vehicle assets financed by us to give us a wider pan-India presence.?

About Magma Fincorp Limited

Magma Fincorp Limited ("Magma") is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors, SME Loans and Insurance. Magma has a dedicated customer base of over 2 lac customers and has assets of approximately US $ 1.89 billion under management. The company has 150 branches in 21 states and employs over 4100 people. Magma enjoys rating of AAA (SO) and AA from CRISIL and CARE respectively for various instruments.

About Ashok Leyland Limited

Ashok Leyland is the flagship of the Hinduja Group and the second largest manufacturer of commercial vehicles in India with 08-09 sales turnover of more than US $ 1.3 billion. With six manufacturing locations at Chennai, Hosur (three plants), Alwar and Bhandara, the Company has an installed capacity of 100,000 vehicles. The Company has joint ventures in Sri Lanka and Bangladesh, associate companies in the Czech Republic and the UAE and also exports to over 20 countries worldwide.