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Thursday, May 02, 2002

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KPIT, Cummins boards okay merger plan

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PUNE, May 1

THE respective boards of directors of KPIT Infosystems Ltd, (KPIT) and Cummins Infotech Ltd (CIT) have approved the merger of CIT with KPIT. The new merged entity would now be known as KPIT Cummins Infosystems Ltd.

Talking to presspersons, Mr. Ravi Pandit, Chairman, KPIT, said Cummins would initially hold 12 per cent in the merged entity. This would be increased to a maximum of 40 per cent over a period of five years depending on the amount of work that Cummins would be bringing to the merged entity.

He said the merged entity would have Mr Ravi Pandit and Mr Kishor Patil as the Chairman and the Managing Director respectively. Additionally three nominees from Cummins would join the board of directors of the merged company. There would be one nomination from the parent company, Cummins Inc and two nominations from Cummins India. In total the Board would have 12 directors, with nine representing KPIT and three ummins. Mr Pandit noted that the merged entity would focus on two key verticals, banking and finance and manufacturing and would continue to serve the customers in the areas of e-business solutions, enterprise applications and data warehousing.

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