News Release

Mumbai, June 6, 2001

Public Issue of ICICI Safety Bonds - June 2001

Under the Umbrella Prospectus approved by the Securities and Exchange Board of India (SEBI) for the year 2001-2002, ICICI is making the first public offering of Unsecured Redeemable Bonds in the nature of Debentures aggregating Rs. 400 crore with a right to retain oversubscription of up to Rs. 400 crore ("ICICI Safety Bonds - June 2001"). The issue will open for subscription on June 11, 2001 and will close on June 29, 2001.

Two premier credit rating agencies have assigned AAA ratings for the bonds:- "LAAA" by ICRA and "CARE AAA" by CARE. The ratings signify highest safety with regard to timely payment of principal and interest.

The Issue offers various options under five types of bonds - Encash Bond, Regular Income Bond, Money Multiplier Bond, Children Growth Bond and Pension Bond.

NRIs/OCBs are also eligible to invest in these bonds (except for Encash Bonds) on both repatriable and non-repatriable basis.

1. Encash Bond Due to heavy liquidity requirement in the market and investor sentiment of being close to money, ICICI is re-launching the Encash Bond. In the past too ICICI has received overwhelming response for this Bond.

ICICI is providing an encash option to the investors to facilitate withdraw of their money anytime after a cool-off period of one year. It is offering a growing coupon to the investors for longer duration of their being invested in these Bonds.

* Subject to TDS as per the then prevailing tax laws
# The yield to the investor if he opts for encashment at the end of the 1st, 2nd, 3rd, 4th and 5th year
@ Rounded off to the nearest multiple of 0.1

2. REGULAR INCOME BOND
The investor may choose any of the following option in respect of the Regular Income Bond:

# Rounded off to nearest multiple of 0.1
* Subject to TDS as per the then prevailing tax rates

Under the Regular Income Bond, an investor can invest for 5 years and earn regular income on a monthly, half-yearly or annual basis under Options I, II and III respectively.

Option III offers a five-year Regular Income Bond with an interest rate of 10.25% p.a., payable annually.

3. MONEY MULTIPLIER BOND (in the nature of Deep Discount Bond)
This Bond has been launched to cater to the needs of various investors who would want to save today to meet cash flows requirements in near future.
The investor may choose any of the following options in respect of the Money Multiplier Bond:

# Rounded off to nearest multiple of 0.1
* Subject to TDS as per the then prevailing tax laws."

The savings under option II doubles in 7 years 2 months. For investors looking for a shorter maturity product, under option I, Rs.5, 000 becomes Rs.7, 475 in 4 years 4 months.

4. CHILDREN GROWTH BOND
This Bond has been designed to provide for the lumpsum requirements, once the child has grown up. For events such as the wedding, higher education and other needs of their children, parents may judiciously invest n these options. Under option I, the investment grows to 5 times and under option II the investments grows to 8 times.
There is no Gift Tax or Wealth Tax on these Bonds, so one can gift these Bonds to near and dear relatives. Further, when the child grows and attains maturity, the capital gains if any on these Bonds (if Bonds are sold in the market before maturity) will not be clubbed with the income of the parents.
The investor may choose any of the following options in respect of the Children Growth Bond:

# Rounded off to nearest multiple of 0.1
* Subject to TDS as per the then prevailing tax laws."

5. PENSION BOND
This Bond has been designed to meet the needs of those who wish to plan for their retirement. The investor can receive a monthly pension after a selected Wait Period. The wait period of 1,5 or 8 years can be chosen on the basis of the age of the investor and the likely age of retirement, after which the Pension Bond would provide a monthly source of pension. Further at the end of tenure of these Bonds, the investor gets Maturity Bonus.
The monthly pension would comprise interest and principal repayments in the form of Annuity. There shall be no repayment of lumpsum principal at the time of maturity of the bond.
The company proposes to offer to the investors options from among the following :

* Subject to TDS as per the then prevailing tax laws."
# Rounded off to nearest multiple of 0.1

All the Bonds (except Encash Bonds) are available in Demat mode too.
For the investors who are investing for long term, holding the investment has been made more convenient as the same can now be acquired in dematerialized mode. All the Bonds offered by ICICI in the past since 1998 are also now convertible into Demat. No separate demat account is required to be opened for holding bonds and the investor can hold the bonds in the account in which he holds equity shares. Furthermore, at the time of redemption, the investor does not need to worry about submitting the bond certificate to the Issuing Company, as the Company will on its own, redeem the bonds and send the redemption cheque to the investor's address.

The ICICI Safety Bonds - June 2001 issue provides the investors another opportunity to save at market interest rates and offers various redemption periods and options to choose from. The investor can opt for regular monthly income or lock in for 20 years 9 months with no intermediate coupon payments or invest in the Tax Saving Bond to help him plan his taxes or choose to receive regular cash flows in the form of pension by investing in Pension Bonds.

Except for the historical information contained herein, statement in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statement". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.