Dr Reddy Laboratories : D17 01.32 PR

Press Release

Dr Reddy's announces partnership with Cosmederm Technologies for Indian distribution of proprietary skin care products

Forays into aesthetic dermatology segment in India

September 04, 2008, Hyderabad

Dr. Reddy's Laboratories Ltd. (NYSE: RDY) has announced a licensing and distribution agreement with Cosmederm Technologies, a US based specialty pharmaceutical company focused on dermatology and aesthetic medicine. The agreement grants Dr. Reddy's exclusive rights to distribute Cosmederm Technologies' unique skin care products throughout India.

Cosmederm's proprietary technology allows for the formulation of highly potent, non-irritating skin care products in the areas of anti-aging, acne, pruritus, rosacea and others. The partnership is for two product lines:

• • REFINITY peel kits (Glycolic acid 70%) and

• • COSMEDERM peel kits (Glycolic acid 50%)

Through this partnership Dr. Reddy's enters the aesthetic dermatology segment and consolidates its position in cosmeceuticals.

Commenting on the partnership, Jaspal Singh Bajwa, President - Branded Formulations Group said, "Cosmederm's proprietary technology is exceptional in its ability to allow the formulation of highly effective skin care products. We are very excited to offer these unique products throughout the Indian market and expect the lines to quickly become leaders in the area of chemical peels and anti-aging".

"The opportunity to work with Dr. Reddy's and introduce our products to the Indian consumers is a great milestone for Cosmederm. Dr. Reddy's is a global brand and a very valuable partner for us", said Sean Edwards - President, Cosmederm Technologies.

Notes to the editor:

• • As per our estimates the market for Aesthetic Dermatology Segment is about Rs 100 crores growing at the rate of more than 50%.

Brief mode of action:

• • Glycolic acid in higher concentrations is known to cause epidermal peeling which improves the skin tone, color and glow.

• • It is indicated in pigmentation disorders as well as skin wrinkles

• • Other brands of Dr.Reddy's in the dermatology segment are Mintop, Venusia, Niltan, Clearz and Antoxid-HC

For more information please contact:

Investors and Financial Analysts:

Nikhil Shah [e-mail] or on [phone]

Media:

M Mythili [e-mail] or on [phone].

Press Release

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 with proven research capabilities. The Company is vertically integrated with a presence across the pharmaceutical value chain. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally, with focus on India, US, Europe and Russia. The Company conducts research in the areas of diabetes, cardiovascular, anti-infectives, inflammation and cancer.www.drreddys.com

About Cosmederm Technologies Inc.

Cosmederm Technologies is a specialty pharmaceutical company specializing in the development of highly potent, yet non-irritating, topical products in the areas of anti-aging, anti-itch, acne, rosacea and others. Cosmederm Technologies' product lines include TriCalm™, REFINITY™ Skin Solutions, and COSMEDERM SKIN SCIENCE™.www.cosmederm.com

For more information please contact:

Investors and Financial Analysts:

Nikhil Shah [e-mail] or on [phone]

Media:

M Mythili [e-mail] or on [phone].