PRESS RELEASE

Lavazza buys Barista and Fresh & Honest

New Delhi / Mumbai, 9th March 2007: Italy’s largest coffee company, Lavazza Group,
has signed an agreement with the Sterling Infotech Group to acquire 100% stake in
Barista Coffee Company Ltd. (BCCL) and Fresh and Honest Café Ltd. (FHCL).The
transaction is expected to be completed over the next 4 weeks

Barista’s strong brand equity, presence and significant market share along with Fresh &
Honest’s leadership status in freshly brewed coffee vending market make this acquisition
an ideal launch pad for Lavazza. Lavazza has been planning to enter the Indian market
and this acquisition gives them an immediate access to the Indian consumer through
Barista’s and Fresh and Honest’s strong countrywide network.

Lavazza, with annual revenues of over USD 1.2 Billion is a company operating in over
80 countries and has strong presence in both out of home (café chains and coffee
vending) and retail businesses. This deal will bring strong synergies between the
business of Lavazza, Barista and Fresh & Honest.

Commenting on the deal, Mr. Alberto Lavazza, CEO of Lavazza Group said : “We are
delighted to enter the rapidly growing Indian market through Barista and FHCL.
The Agreement fits in well with our strategy to grow in markets with high
development potential. In this respect we are proud to enter India with such a
significant acquisition, which allows us to take a leading position in coffee shops
and in the away from home market in line with Lavazza culture, we will take
forward our values; which are attention to consumer needs and a passion for high
quality coffee.”

Commenting on the deal, Mr. V. Srinivasan, CEO, Sterling Infotech Group said, “We are
glad to sign this deal with Lavazza, who will bring rich international experience to
the businesses of FHCL and Barista which we have nurtured in the past. Sterling
group has decided to focus and expand in the area of renewable energy and as a
consequence we are divesting the F&B business. We are glad that we found an
excellent company in Lavazza, which will provide added impetus to the robust
growth plans of Barista and Fresh and Honest.“

Lazard were advisors to Lavazza and Standard Chartered Bank were advisors to
Sterling Infotech.
About Sterling Infotech Group.

SIG, a diversified global business conglomerate founded in 1988, has over the past
decade and a half rapidly grown in size and stature into a professionally managed group
with interests in telecom services and in the high growth / mass consumption food &
beverages business. Post the divestiture of its telecom businesses to Maxis in March
2006, SIG has been pursuing investment opportunities in other areas viz. renewable
energy (including fuel ethanol), real estate, engineering & construction and e-
governance initiatives both in India and abroad.

About Lavazza Group

Lavazza is one of the most important roasters in the world, a leader in Italy with a 48%
share of the retail market (in value, source: Nielsen). It operates in over 80 countries, in
the Home and Away-from-Home sectors (Foodservice, Vending and Retailing). In 2006
sales totalled USD 1.2 billion.

The history of Lavazza starts in 1895, the Eighties marked the company’s expansion on
European markets and subsidiaries were opened in France, Germany, Austria, the UK
and the United States, followed by Spain during the Nineties, Portugal in 2001 and
Brazil in 2006.With its widespread distribution network, today Lavazza reaches over 80
countries around the world, from Iceland to the Americas and on to Australia. Lavazza
Group has total workforce 2000 worldwide.

Lavazza’s history is the story of a successful company, but it is also the tale of a family
that has worked passionately for four generations, striving to unite quality, tradition and
originality.

About Barista Coffee Company Limited

Barista was established in February 2000 by Barista Coffee Company Limited, to

recreate the ambience and experience of the typical Italian neighborhood Espresso Bars
in India. Barista Coffee aims to provide a comfortable place for people to relax and
unwind over a cup of coffee. Barista Coffee Company Limited has been awarded the
TOPS award for excellence in specialty coffee retailing by the Specialty Coffee
Association of America (SCAA), the world's largest coffee trade organization. The TOPS
program recognizes outstanding retailers and roaster retailers for their pursuit of coffee
excellence and education. Barista has also been voted ‘Superbrand’ two years in
succession.
At present, the Barista Coffee Company Limited has over 150 Espresso Bars and
Barista Crèmes in over 29 locations in India. Besides India, Barista also has cafes in
locations across Srilanka, Oman and the UAE.
About Fresh & Honest Café Ltd.

Fresh & Honest Cafe Ltd, part of the Sterling Infotech Group, has been a pioneer in the
freshly-brewed coffee vending business in India. FHCL has an installed base of
2500 Swiss, fully Automatic Vending Machines (AVMs) brewing fresh coffee across the
country. The company offers end-to-end vending solutions at client premises, including
machine operation, maintenance, consumables & manpower.

FHCL's client list includes the best 5-Star Hotels, high-end Restaurants, large
Corporates & high-footfall public places like railway stations, airports & hospitals. FHCL
is an ISO 9000:2001 & HACCP certified company.

The company operates from 15 Branches across the country, with its Corporate Office &
Roasting facility based at Chennai.FHCL has recently leveraged its coffee equity by
launching its "Alive" filter coffee powder in Retail packs in South India.

For further details, please contact:

Lavazza Public Relations: Alessandra Bianco: a.bianco@lavazza.it

+39 335 7302211/335 6567960