Dr. Reddy’s Custom Pharmaceutical Services (CPS) business commissions mPEG alcohol manufacturing facility and officially brands its Activated mPEG Products as PEGtech

Hyderabad, March 17, 2010: The Custom Pharmaceutical Services (CPS) business of Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) today announced the successful commissioning of its commercial scale manufacturing facility for pharma grade mPEG alcohols at its Cuernavaca facility in Mexico. mPEG Alcohols are the key raw materials for Activated mPEG, extensively used for pegylation with biologic drugs and increasingly for peptides and small molecule pharmaceuticals. Dr. Reddy’s has officially announced PEGtech as its product brand for its extensive range of Activated mPEGs.

The new assets in Mexico represent a significant investment in a dedicated facility operated to c-GMP standards which is capable of producing a wide range of molecular weight mPEGs and has a multi tonne annual capacity. The mPEG alcohol manufactured in Mexico will be supplied to Dr. Reddy’s c-GMP facility in Mirfield, UK where commercial scale activation is carried out. PEGtech branding has been used to bring together a broad product range comprising a variety of activating groups and molecular weights (5-60 kDa), which are now fully supported by backward integration to the key starting materials. It furthermore highlights the company’s extensive experience in product development and GMP manufacture of the Activated mPEGs.

Commenting on the successful facility commissioning and PEGtech branding, Satish Reddy, MD and COO, Dr. Reddy’s said, "Our investment in the world class mPEG alcohol facility in Mexico underlines our commitment to the growing market for Activated mPEGs. By introducing the PEGtech brand, our customers can be assured of the same high quality standards and customer service as they develop their PEGylated biologic drugs or small molecules from the laboratory right through to commercial applications".

Disclaimer
This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

About Dr. Reddy’s
Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is an emerging global pharmaceutical company. We fulfill our purpose of providing affordable and innovative medicines through three core businesses: Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Our products are marketed globally, with a focus on India, US, UK, Germany and Russia.

www.drreddys.com

For more information please contact:

Mark Pearson, PEGtech Product Manager, Dr. Reddy's (EU) Ld. at: pegtech@drreddys.com

Media:
S Rajan at rajans@drreddys.com / +91-40-66511725

Investors and Financial Analysts:
Kedar Upadhye at kedaru@drreddys.com / +91-40-66834297
Raghavender R at raghavenderr@drreddys.com / +91-40-66511529
Milan Kalawadia (USA) at mkalawadia@drreddys.com / +1 908-203-4931